Clarified Risk Assessment Standards

In January 2010, the AICPA's Auditing Standards Board (ASB) approved for issuance the clarified statements on auditing standards related to risk assessment (“clarified risk assessment standards”) rewritten as part of its clarity project. The clarified risk assessment standards have been redrafted into a format that clearly identifies objectives, relevant definitions, requirements, and application and other explanatory material.

For additional information, please visit our webpage dedicated to the Clarity Project.

Download the Clarified Risk Assessment Standards:

• Clarified SAS, Audit Evidence (Redrafted)
  
  
• Clarified SAS, Materiality in Planning and Performing an Audit
  
  
• Clarified SAS, Evaluation of Misstatements Identified During an Audit
  
  
• Clarified SAS, Planning an Audit
  
  
• Clarified SAS, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
  
  
• Clarified SAS, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
  

Extant Risk Assessment Standards

To further enhance audit quality, the AICPA Auditing Standards Board, in early 2006, issued a set of eight Statements on Auditing Standards (SAS Nos. 104-111), collectively referred to as the Risk Assessment Standards. These Standards became effective for audits of financial statements for periods beginning on or after December 15, 2006.

• View a summary of the Standards
• Read the Standards
• Find Implementation guidance and CPE related to the Standards including:
  • Technical Practice Aids (TIS):
    • TIS 8100.01 - Determining the Effective Date of a New Statement on Auditing Standards for Audits of a Single Financial Statement
    • TIS 8100.02 - Determining the Effective Date of a New Statement on Auditing Standards for Audits of Interim Periods
    • TIS 8200.05 – Testing the Operating Effectiveness of Internal Control
    • TIS 8200.06 – The Meaning of Expectation of the Operating Effectiveness of Controls
    • TIS 8200.07 – Considering a Substantive Audit Strategy
    • TIS 8200.08 – Obtaining an Understanding of the Control Environment
    • TIS 8200.09 – Assessing Inherent Risk
    • TIS 8200.10 – Defaulting to Maximum Control Risk
    • TIS 8200.11 – Ineffective Controls
    • TIS 8200.12 – Use of Walkthroughs
    • TIS 8200.13 – Documenting Internal Control
    • TIS 8200.14 – Suggesting Improvements in Internal Control
    • TIS 8200.15 – Identifying Significant Deficiencies
    • TIS 8200.16 – Examining Journal Entries
  • Audit Risk Alert, Understanding the New Auditing Standards Related to Risk Assessment
  • Audit Guide, Assessing and Responding to Audit Risk in a Financial Statement Audit
  • CPE Self Study:
    • Auditor’s Risk Assessment Process: Tackling the New Risk Assessment SASs
    • Detecting Misstatements: Integrating SAS No. 99 and the Risk Assessment Standards
    • Risk Assessment Standards - Understanding the Entity and Assessing Risk
  • Related Articles:
    • "Assessing and Responding to Risks in a Financial Statement Audit", Journal of Accountancy, July 2006
    • "Assessing and Responding to Risks in a Financial Statement Audit: Part II", Journal of Accountancy, January 2007
    • "Risk Assessment Standards in Action", Journal of Accountancy, January 2008