Clarified Statements on Auditing Standards


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Original Standard No.

Title & synopsis

Section in Professional Standards

Interpretations (if applicable)

SAS No. 122

 

Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards
This section addresses the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with generally accepted auditing standards (GAAS).

AU-C sec. 200

 
 

Terms of Engagement
This section addresses the auditor’s responsibilities in agreeing upon the terms of the audit engagement with management and, when appropriate, those charged with governance.

AU-C sec. 210

 
 

Quality Control for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards
This section addresses the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. It also addresses, when applicable, the responsibilities of the engagement quality control reviewer.

AU-C sec. 220

 
 

Audit Documentation
This section addresses the auditor’s responsibility to prepare audit documentation for an audit of financial statements.

AU-C sec. 230

AU-C sec. 9230

 

Consideration of Fraud in a Financial Statement Audit
This section addresses the auditor’s responsibilities relating to fraud in an audit of financial statements.

AU-C sec. 240

 
 

Consideration of Laws and Regulations in an Audit of Financial Statements
This section addresses the auditor’s responsibility to consider laws and regulations in an audit of financial statements.

AU-C sec. 250

 
 

The Auditor’s Communication With Those Charged With Governance
This section addresses the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements.

 

AU-C sec. 260

 

 
 

Communicating Internal Control Related Matters Identified in an Audit
This section addresses the auditor’s responsibility to appropriately communicate to those charged with governance and management deficiencies in internal control that the auditor has identified in an audit of financial statements.

AU-C sec. 265

AU-C sec. 9265

 

Planning an Audit
This section addresses the auditor’s responsibility to plan an audit of financial statements.

AU-C sec. 300

 
 

Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
This section addresses the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements through understanding the entity and its environment, including the entity’s internal control.

AU-C sec. 315

 
 

Materiality in Planning and Performing an Audit
This section addresses the auditor’s responsibility to apply the concept of materiality in planning and performing an audit of financial statements.

AU-C sec. 320

 
 

Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
This section addresses the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with AU-C section 315 and to evaluate the audit evidence obtained in an audit of financial statements.

AU-C sec. 330

 
 

Audit Considerations Relating to an Entity Using a Service Organization
This section addresses the user auditor’s responsibility for obtaining sufficient appropriate audit evidence in an audit of the financial statements of a user entity that uses one or more service organizations.

AU-C sec. 402

 
 

Evaluation of Misstatements Identified During the Audit
This section addresses the auditor’s responsibility to evaluate the effect of identified misstatements on the audit and the effect of uncorrected misstatements, if any, on the financial statements.

AU-C sec. 450

 
 

Audit Evidence
This section explains what constitutes audit evidence in an audit of financial statements and addresses the auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.

AU-C sec. 500

AU-C sec. 9500

 

Audit Evidence—Specific Considerations for Selected Items
This section addresses specific considerations by the auditor in obtaining sufficient appropriate audit evidence, in accordance with AU-C section 330 and 500 regarding certain aspects of (a) investments in securities and derivative instruments; (b) inventory; (c) litigation, claims, and assessments involving the entity; and (d) segment information in an audit of financial statements.

AU-C sec. 501

 
 

External Confirmations
This section addresses the auditor’s use of external confirmation procedures to obtain audit evidence, in accordance with the requirements of AU-C sections 330 and 500. It does not address inquiries regarding litigation, claims, and assessments

AU-C sec. 505

 
 

Opening Balances—Initial Audit Engagements, Including Reaudit Engagements
This section addresses the auditor’s responsibilities relating to opening balances in an initial audit engagement, including a reaudit engagement. In addition to financial statement amounts, opening balances include matters requiring disclosure that existed at the beginning of the period, such as contingencies and commitments.

AU-C sec. 510

 
 

Analytical Procedures
This section addresses the auditor’s use of analytical procedures as substantive procedures (substantive analytical procedures). It also addresses the auditor’s responsibility to perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion on the financial statements.

AU-C sec. 520

 
 

Audit Sampling
This section applies when the auditor has decided to use audit sampling in performing audit procedures. It addresses the auditor’s use of statistical and nonstatistical sampling when designing and selecting the audit sample, performing tests of controls and tests of details, and evaluating the results from the sample.

AU-C sec. 530

 
 

Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
This section addresses the auditor’s responsibilities relating to accounting estimates, including fair value accounting estimates and related disclosures, in an audit of financial statements.

AU-C sec. 540

 
 

Related Parties
This section addresses the auditor’s responsibilities relating to related party relationships and transactions in an audit of financial statements.

AU-C sec. 550

 
 

Subsequent Events and Subsequently Discovered Facts
This section addresses the auditor’s responsibilities relating to subsequent events and subsequently discovered facts in an audit of financial statements. It also addresses a predecessor auditor’s responsibilities for subsequent events and subsequently discovered facts when reissuing the auditor’s report on previously issued financial statements that are to be presented on a comparative basis with audited financial statements of a subsequent period.

AU-C sec. 560

 
 

Written Representations
This section addresses the auditor’s responsibility to obtain written representations from management and, when appropriate, those charged with governance in an audit of financial statements.

AU-C sec. 580

 
 

Consideration of Omitted Procedures After the Report Release Date
This section addresses the auditor’s responsibilities when, subsequent to the report release date, the auditor becomes aware that one or more auditing procedures that the auditor considered necessary in the circumstances existing at the time of the audit were omitted from the audit of the financial statements.

AU-C sec. 585

 
 

Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)
This section addresses special considerations that apply to group audits, in particular those that involve component auditors.

AU-C sec. 600

 

AU-C sec. 9600

 

 

Using the Work of an Auditor’s Specialist
This section addresses the auditor’s responsibilities relating to the work of an individual or organization possessing expertise in a field other than accounting or auditing when that work is used to assist the auditor in obtaining sufficient appropriate audit evidence.

AU-C sec. 620

AU-C sec. 9620

 

Forming an Opinion and Reporting on Financial Statements This section addresses the auditor’s responsibility to form an opinion on the financial statements. It also addresses the form and content of the auditor’s report issued as a result of an audit of financial statements.

AU-C sec. 700

AU-C sec. 9700

 

Modifications to the Opinion in the Independent Auditor’s Report This section addresses the auditor’s responsibility to issue an appropriate report in circumstances when, in forming an opinion in accordance with AU-C section 700A, the auditor concludes that a modification to the auditor’s opinion on the financial statements is necessary.

AU-C sec. 705

 
 

Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report This section addresses additional communications in the auditor’s report when the auditor considers it necessary to draw users’ attention to a matter or matters presented or disclosed in the financial statements that are of such importance that they are fundamental to users’ understanding of the financial statements (emphasis-of-matter paragraph) or draw users’ attention to any matter or matters other than those presented or disclosed in the financial statements that are relevant to users’ understanding of the audit, the auditor’s responsibilities, or the auditor’s report (other-matter paragraph).

AU-C sec. 706

 
 

Consistency of Financial Statements
This section addresses the auditor’s evaluation of the consistency of the financial statements between periods, including changes to previously issued financial statements and the effect of that evaluation on the auditor’s report on the financial statements.

AU-C sec. 708

 
 

Other Information in Documents Containing Audited Financial Statements This section addresses the auditor’s responsibility with respect to other information in documents containing audited financial statements and the auditor’s report thereon. In the absence of any separate requirement in the particular circumstances of the engagement, the auditor’s opinion on the financial statements does not cover other information, and the auditor has no responsibility for determining whether such information is properly stated. This section establishes the requirement for the auditor to read the other information of which the auditor is aware because the credibility of the audited financial statements may be undermined by material inconsistencies between the audited financial statements and other information.

AU-C sec. 720

 
 

Supplementary Information in Relation to the Financial Statements as a Whole
This section addresses the auditor’s responsibility when engaged to report on whether supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

AU-C sec. 725

AU-C sec. 9725

 

Required Supplementary Information
This section addresses the auditor’s responsibility with respect to information that a designated accounting standards setter requires to accompany an entity’s basic financial statements (hereinafter referred to as required supplementary information).

AU-C sec. 730

 
 

Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks
This section addresses special considerations in the application of AU-C sections 200-700A to an audit of financial statements prepared in accordance with a special purpose framework, which is a cash, tax, regulatory, or contractual basis of accounting.

 

AU-C sec. 800

 

 
 

Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
This section addresses special considerations in the application of AU-C sections 200-700A to an audit of a single financial statement or of a specific element, account, or item of a financial statement.

 

AU-C sec. 805

 

 

AU-C sec. 9805

 

 

Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements
This section addresses the auditor’s responsibility when the auditor is requested to report on an entity’s compliance with aspects of contractual agreements or regulatory requirements, insofar as they relate to accounting matters, in connection with an audit of financial statements (referred to hereinafter as a report on compliance).

AU-C sec. 806

 
 

Engagements to Report on Summary Financial Statements
This section addresses the auditor’s responsibilities relating to an engagement to report separately on summary financial statements derived from financial statements audited in accordance with generally accepted auditing standards (GAAS) by the same auditor.

AU-C sec. 810

 
 

Reports on Application of Requirements of an Applicable Financial Reporting Framework
This section addresses the reporting accountant’s responsibilities when requested to issue a written report on the application of the requirements of an applicable financial reporting framework to a specific transaction or the type of report that may be issued on a specific entity’s financial statements.

AU-C sec. 915

 
 

Letters for Underwriters and Certain Other Requesting Parties
This section addresses the auditor’s responsibilities when engaged to issue letters (commonly referred to as comfort letters) to requesting parties in connection with a nonissuer entity’s financial statements included in registration statements filed with the Securities and Exchange Commission (SEC) under the Securities Act of 1933 (the 1933 Act) (for example, inclusion of the nonissuer entity’s financial statements as required by either Rule 3-05 or 3-09 of Regulation S-X) or included in other securities offerings.

AU-C sec. 920

 
 

Filings With the U.S. Securities and Exchange Commission Under the Securities Act of 1933
This section addresses the auditor’s responsibilities in connection with financial statements of a nonissuer included or incorporated by reference in a registration statement filed with the U.S. Securities and Exchange Commission (SEC) under the Securities Act of 1933, as amended.

AU-C sec. 925

 
 

Interim Financial Information
This section addresses the auditor’s responsibilities when engaged to review interim financial information under the conditions specified in this section.

AU-C sec. 930

 
 

Compliance Audits
This section addresses the application of GAAS to a compliance audit. Compliance audits usually are performed in conjunction with a financial statement audit. This section does not apply to the financial statement audit component of such engagements.

AU-C sec. 935

 

SAS No. 123

Omnibus Statement on Auditing Standards—2011
This standard contains amendments that conform SAS Nos. 117–118 to SAS No. 122 and address other changes necessitated by the Clarity Project.

AU-C sec. 200.03

AU-C sec. 200.15

AU-C sec. 200.A17

AU-C sec. 230.19

AU-C sec. 260.12

AU-C sec. 260.A27

AU-C sec. 705.16

AU-C sec. 705.19

AU-C sec. 720.10–.11

AU-C sec. 720.A4

AU-C sec. 915.09

AU-C sec. 915.14

AU-C sec. 935.30–.31

AU-C sec. 935.A41

 

SAS No. 124

Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country
This section requires the auditor to include an emphasis-of-matter paragraph to highlight a foreign financial reporting framework in instances where a report that is to be used in the United States was prepared in accordance with a financial reporting framework generally accepted in another country, but also permits the auditor to express an unqualified opinion.

AU-C sec. 910

 

SAS No. 125

Alert That Restricts the Use of the Auditor's Written Communication
This section addresses the auditor’s responsibility—when required or when the auditor decides—to include in the auditor’s report or other written communication issued by the auditor in connection with an engagement conducted with GAAS, language that restricts the use of the auditor’s written communication.

AU-C sec. 905

 

SAS No. 127

Omnibus Statement on Auditing Standards—2013
This section addresses making reference to the audit of a component auditor in the auditor’s report on group financial statements. It also adds an other basis of accounting to the bases of accounting defined as special purpose frameworks.

AU-C sec. 600.25

AU-C sec. 800

 

SAS No. 128

Using the Work of Internal Auditors
This section addresses the external auditor’s responsibilities if using the work of internal auditors. Using the work of internal auditors includes (a) using the work of the internal audit function in obtaining audit evidence and (b) using internal auditors to provide direct assistance under the direction, supervision, and review of the external auditor.

AU-C sec. 610

 

SAS No. 129

Amendment to Statement on Auditing Standards No. 122 Section 920, Letters for Underwriters and Certain Other Requesting Parties, as Amended
This section addresses the auditor’s responsibilities when engaged to issue letters (commonly referred to as comfort letters) to requesting parties in connection with a nonissuer entity’s financial statements included in a registration statement or other securities offerings.

AU-C sec. 920

 

SAS No. 130

An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements
This section establishes requirements and provides guidance that applies only when an auditor is engaged to perform an audit of internal control over financial reporting (ICFR) that is integrated with an audit of financial statements (integrated audit).

AU-C sec. 940

 

SAS No. 131

Amendment to Statement on Auditing Standards No. 122 Section 700A, Forming an Opinion and Reporting on Financial Statements This section addresses the auditor

AU-C sec. 700

AU-C sec. 9700

SAS No. 132

The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern
This section addresses the auditor’s responsibilities in the audit of financial statements relating to the entity’s ability to continue as a going concern and the implications for the auditor’s report. This section applies to all audits of a complete set of financial statements, regardless of whether the financial statements are prepared in accordance with a general purpose or a special purpose framework.

AU-C sec. 570

AU-C sec. 800

AU-C sec. 930

 

SAS No. 133

Auditor Involvement With Exempt Offering Documents
This section addresses the auditor’s responsibilities when both of the following conditions exist: (a) the auditor’s report on financial statements or the auditor’s review report on interim financial information of an entity is included or incorporated by reference in an offering document relating to securities, when either the transaction or the securities themselves are exempt from registration under the Securities Act of 1933, as amended (Securities Act of 1933); or franchise offerings regulated by the Federal Trade Commission (FTC) or applicable state franchise laws; and (b) the auditor performs one or more of the activities listed in this section with respect to the exempt offering document.

AU-C sec. 560

AU-C sec. 925

AU-C sec. 945

 

SAS No. 134

Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements
These sections address the auditor’s responsibility to form an opinion on the financial statements. They also address the form and content of the auditor’s report issued as a result of an audit of financial statements.

AU-C sec. 700

AU-C sec. 701

AU-C sec. 705

AU-C sec. 706

AU-C sec. 9700

SAS No. 135

Omnibus Statement on Auditing Standards — 2019
This standard is intended to more closely align Auditing Standards Board guidance with the PCAOB

AU-C sec. 210

AU-C sec. 240

AU-C sec. 260

AU-C sec. 265

AU-C sec. 315

AU-C sec. 330

AU-C sec. 510

AU-C sec. 550

AU-C sec. 560

AU-C sec. 600

AU-C sec. 930

AU-C sec. 940

AU-C sec. 9265

SAS No. 136

Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA
This section addresses the auditor’s responsibility to form an opinion on the financial statements of employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA), hereinafter referred to as ERISA plans. It also addresses the form and content of the auditor’s report issued as a result of an audit of ERISA plan financial statements. This section applies to audits of single employer, multiple employer, and multiemployer plans subject to ERISA. This section should not be adapted for plans that are not subject to ERISA.

 

AU-C sec. 703

 

 

SAS No. 137

The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports
This section addresses the auditor’s responsibilities relating to other information, whether financial or nonfinancial information (other than financial statements and the auditor’s report thereon), included in an entity’s annual report. An entity’s annual report may be a single document or a combination of documents that serve the same purpose.

 

AU-C sec. 720

 

 
SAS No. 138

Amendments to the Description of the Concept of Materiality

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.

AU-C sec. 200

AU-C sec. 320

AU-C sec. 450

AU-C sec. 600

AU-C sec. 700

AU-C sec. 703

AU-C sec. 9600

AU-C sec. 9700

SAS No. 139

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

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.

AU-C sec. 800

AU-C sec. 805

AU-C sec. 810

AU-C sec. 9805

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

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.

AU-C sec. 703

AU-C sec. 706

AU-C sec. 725

AU-C sec. 730

AU-C sec. 910

AU-C sec. 920

AU-C sec. 930

AU-C sec. 935

AU-C sec. 940

 AU-C sec. 9725

SAS No. 141

Amendment to the Effectiven Dates of SAS Nos. 134-140

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.

   

Recently Issued Clarified SASs and Interpretations

SAS No. 143, Auditing Accounting Estimates and Related Disclosures

SAS No. 142, Audit Evidence

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

SAS No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137 137 (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 134 (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 138, Amendments to the Description of the Concept of Materiality (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 137The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 135, Omnibus Statement on Auditing Standards – 2019 (SAS No. 141 delays the effective date to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements (SAS No. 141 delays the effective to December 15, 2021, and the Auditing Standards Board recommends that SAS Nos. 134–140 be implemented concurrently)

Auditing Interpretations