ASB Issues SAS No. 142 on Audit Evidence
The Auditing Standards Board has issued Statement on Auditing Standards No. 142, Audit Evidence, to supersede SAS No. 122 section 500, Audit Evidence, and amend various other AU-C sections in AICPA Professional Standards . SAS No. 142 addresses the evolving nature of business and audit services and issues that have arisen since extant AU-C section 500 was originally issued. The issues arising include the use of emerging technologies by both preparers and auditors, the application of professional skepticism, the expanding sources of information to be used as audit evidence, and more broadly, the accuracy, completeness, relevance and reliability of audit evidence. The focus of the SAS, including its objective, is expanded to be primarily focused on considering the attributes and factors of information that contribute to an assessment of whether sufficient appropriate audit evidence has been obtained. The change in focus is accomplished by establishing a multi-faceted consideration of attributes and factors in evaluating such audit evidence. SAS No. 142 becomes effective for audits of financial statements for periods ending on or after December 15, 2022.
ASB Issues SAS No. 143 on Auditing Accounting Estimates
The Auditing Standards Board 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 SAS is one piece of a larger project to enhance audit quality (see the AICPA’s Enhancing Audit Quality Initiative ) and enables auditors to appropriately address the increasingly complex scenarios that arise today from new accounting standards that include estimates and related disclosures, 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.