Standards Tracker - Audit and Attest

SAS No. 141, Amendment to the Effective Dates of SAS Nos. 134–140

Issue: May-20

Effective Date: SAS No. 141 becomes effective upon issuance.

Summary: SAS No. 141 delays by one year the effective dates of SAS Nos. 134–140 (which, among other things, substantially changes the auditor’s report) from December 15, 2020, to December 15, 2021, and also permits early implementation of this suite of standards. As a result of the COVID-19 pandemic, the Auditing Standard Board (ASB) believes it is in the public interest and a welcome relief to members to issue this standard.

SAS No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137

Issue: Apr-20

Effective Date: The SAS becomes effective for periods ending on or after December 15, 2020. Early implementation is not permitted. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: SAS No. 140 completes the ASB’s yearlong effort to conform GAAS with the reporting provisions of SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, and other recently issued SASs. In addition, certain other AU-C sections in AICPA Professional Standards have been amended to reflect practice issues that have arisen since the most recent revisions to these AU-C sections, and AU-C section 935, Compliance Audits, has also been amended to be consistent with current governmental requirements.

SAS No. 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 134

Issue: Mar-20

Effective Date: The SAS becomes effective for periods ending on or after December 15, 2020. Early implementation is not permitted. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: SAS No. 139 aligns AU-C sections 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks, 805, Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement, and 810, Engagements to Report on Summary Financial Statements, with the reporting provisions of SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, and other recently issued SASs. These revised auditor’s reports involving special purpose accounting frameworks and other unique reporting scenarios provide additional transparency into the basis for the auditor’s opinion and the responsibilities of both entity management and auditors.

SAS No. 138, Amendments to the Description of the Concept of Materiality

Issue: Dec-19

Effective Date: The SAS becomes effective for periods ending on or after December 15, 2020. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: SAS No. 138 amends various AU-C sections in AICPA Professional Standards, to align the materiality concepts discussed in AICPA Professional Standards with the description of materiality used by the U.S. judicial system, the auditing standards of the PCAOB, the SEC, and the FASB. The ASB believes it is in the public interest to eliminate inconsistencies between AICPA Professional Standards and the description of materiality used by the U.S. judicial system and other U.S. standard setters and regulators.

SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports

Issue: Jul-19

Effective Date: The SAS becomes effective for audits of financial statements for periods ending on or after December 15, 2020. Early implementation is not permitted. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: SAS No. 137 will benefit users of audited financial statements by providing transparency and it is expected to reduce diversity in practice with respect to information and documents considered to be within the scope of this SAS.

SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA

Issue: Jul-19

Effective Date: The SAS becomes effective for audits of financial statements for periods ending on or after December 15, 2020. Early implementation is not permitted. Exhibit B of the SAS, "Implementation Guidance for ERISA Section 103(a)(3)(C) Audits," provides transitional implementation reporting guidance upon initial implementation by the auditor of this SAS. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: This SAS creates a new AU-C section 703 in AICPA Professional Standards and addresses the auditor’s responsibility to form an opinion and report on the audit of financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA).

SAS No. 135, Omnibus Statement on Auditing Standards—2019

Issue: May-19

Effective Date: The SAS becomes effective for audits of financial statements for periods ending on or after December 15, 2020. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: This SAS is intended to more closely align ASB guidance with the PCAOB's standards by primarily amending AU-C section 260, Communications With Those Charged With Governance, AU-C section 550, Related Parties, and AU-C section 240, Consideration of Fraud in a Financial Statement Audit, in AICPA Professional Standards.

SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements

Issue: May-19

Effective Date: The SAS becomes effective for audits of financial statements for periods ending on or after December 15, 2020. Early implementation is not permitted. (Note: SAS No. 141 defers the effective date of SAS No. 138 to December 15, 2021, and the ASB recommends that SAS Nos. 134–140 be implemented concurrently.)

Summary: SAS No. 134, which also amends various other AU-C sections, addresses the auditor’s responsibility to form an opinion on the financial statements and the form and content of the auditor’s report issued as a result of an audit of financial statements. It also addresses the auditor’s responsibilities, and the form and content of the auditor’s report, when the auditor concludes that a modification to the auditor’s opinion on the financial statements is necessary, and when additional communications are necessary in the auditor’s report. This suite of auditor reporting standards includes:

  • New AU-C Section 701, Communicating Key Audit Matters in the Independent Auditor’s Report

The SAS also replaces the following AU-C sections in AICPA Professional Standards:

  • Section 700, Forming an Opinion and Reporting on Financial Statements
  • Section 705, Modifications to the Opinion in the Independent Auditor’s Report
  • Section 706, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report