Clarified Statements on Auditing Standards
Copyright American Institute of Certified Public Accountants, Inc. Access the copyright permission information
The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). These sections now reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply.
Among other improvements, generally accepted auditing standards (GAAS) now more clearly states the objectives of the auditor and the requirements with which the auditor has to comply when conducting an audit in accordance with GAAS.
As the ASB redrafted the standards for clarity, it also converged the standards with the International Standards on Auditing (ISAs), issued by the International Auditing and Assurance Standards Board (IAASB). Although the purpose of redrafting the auditing standards is for clarity and convergence and not to create additional requirements, auditors will need to make some adjustments to their practices as a result of this project.
The AICPA developed a Learning and Implementation Plan to prepare for the transition, as well as additional information, including transition guidance and training, located in the Financial Reporting Center.
As part of the clarity project, the "AU-C" identifier was established to avoid confusion with references to existing "AU" sections. The "AU-C" identifier had been scheduled to revert back to the AU identifier at the end of 2013, by which time the previous sections would be superseded for all engagements. However, in response to user requests, the AU-C identifier will be retained indefinitely. The superseded AU sections were removed from Professional Standards at the end of 2013, as scheduled.
The ASB has completed the Clarity Project with the issuance of SAS No. 128, Using the Work of Internal Auditors, which is effective for audits of financial statements for periods ending on or after December 15, 2014.
Recently Issued Clarified SASs and Interpretations
SAS No. 138, Amendments to the Description of the Concept of Materiality
SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports
SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA
SAS No. 135, Omnibus Statement on Auditing Standards – 2019
SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements
Standards Setting Bodies
- Accounting and Review Services Committee
- Auditing Standards Board
- Federal Accounting Standards Advisory Board
- Financial Accounting Standards Board
- Governmental Accounting Standards Board
- Public Company Accounting Oversight Board
- International Accounting Standards Board
- International Auditing and Assurance Standards Board