NEW YORK (April 20, 2020)
– The American Institute of CPAs'
(AICPA) Auditing Standards Board
(ASB) agreed today to defer implementation of seven recently issued Statements on Auditing Standards (SASs) due to the coronavirus pandemic. These standards, SAS Nos. 134-140, will be deferred one year and are now generally effective for audits of calendar year-end 2021 financial statements.
“The AICPA has heard from numerous small and mid-size CPA firms that they and their clients are struggling due to the pandemic,” said Bob Dohrer, CPA, CGMA, AICPA Chief Auditor. “We understand that many firms may not have the time or resources to focus on effective implementation of SAS Nos. 134-140 this year. We hope the deferral will offer firms relief and an opportunity to implement the standards in the highest quality manner possible when the distractions from the pandemic have diminished.”
The decision came during a special two-hour open meeting, during which ASB board members discussed and voted to defer the effective dates of SAS Nos. 134 through 140. These standards, among other things, substantially change the auditor’s report.
The effective dates of the SASs were for audits of private company financial statements for periods ending on or after December 15, 2020. The deferral means that effective dates now apply for periods ending on or after December 15, 2021.
“For those standards where there was a prohibition against early implementation, the ban has been lifted so that firms that are prepared to implement the standards this year will be permitted to do so,” added Dohrer.
The standards affected are:
- SAS 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, as amended;
- SAS 135, Omnibus Statement on Auditing Standards—2019;
- SAS 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, as amended;
- SAS 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports;
- SAS 138, Amendments to the Description of the Concept of Materiality;
- SAS 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 134; and
- SAS 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137.
For more on the AICPA’s Coronavirus audit and accounting resources please visit here.