NEW YORK, NY (July 10, 2020) – The American Institute of CPAs (AICPA) Auditing Standards Board (ASB) has issued Statement on Auditing Standards No. 143, Auditing Accounting Estimates and Related Disclosures, to supersede SAS No. 122 section 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, and amend various other AU-C sections in AICPA Professional Standards.
“This new auditing standard provides more robust guidance for auditors who are addressing an increasingly complex financial reporting environment,” said Bob Dohrer, CPA, CGMA, AICPA Chief Auditor. “In our current period of economic uncertainty and volatility, management’s asset impairment estimates are particularly important, and this standard will aid auditors in assessing them.”
SAS No. 143 is one piece of a larger project to enhance audit quality (see the AICPA’s Enhancing Audit Quality Initiative). It enables auditors to address today’s new accounting standards and to enhance the auditor’s focus on factors driving estimation uncertainty and potential management bias.
SAS No. 143 becomes effective for audits of financial statements for periods ending on or after December 15, 2023.
Visit our hub site, Recently Issued Auditing and Attestation Standards: Information and Resources, for the latest information on this standard.
About the Auditing Standards Board
The ASB is the senior technical committee of the AICPA designated to issue auditing, attestation, and quality control standards applicable to the performance and issuance of audit and attestation reports for non-issuers. Its mission is to develop and communicate comprehensive performance, reporting, and quality control standards and practice guidance to enable auditors of non-issuers to provide high quality, objective audit and attestation services at a reasonable cost and in the best interests of the profession and the beneficiaries of those services, with the ultimate purpose of serving the public interest by improving existing and enabling new audit and attestation services.