The Auditing Standards Board recently issued additional Proposed Statements on Auditing Standards resulting from its clarity project, through which all of its auditing standards will be redrafted over the next one to two years.
The goal of the clarity project is to make auditing standards easier to read, understand and apply. Consistent with the ASB’s strategy to converge its standards with those of the International Auditing and Assurance Standards Board, each proposed standard has been redrafted using the corresponding International Standards on Auditing as the basis.
The following exposure drafts are open for comment and contain details on proposed changes or expansions to the current standards:
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Consistency of Financial Statements, which would supersede AU section 420, Consistency of Application of Generally Accepted Accounting Principles, in AICPA Professional Standards. The comment period ends May 19.
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Reports on Application of Requirements of an Applicable Financial Reporting Framework, which would supersede AU section 625, Reports on the Application of Accounting Principles, in AICPA Professional Standards. The comment period ends May 17.
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Analytical Procedures, which would supersede AU section 329, Analytical Procedures. Comments are due May 3.
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Audit Evidence¾Specific Considerations for Selected Items, which would supersede AU sections 331, Inventories; 332, Auditing Derivative Instruments, Hedging Activities and Investments in Securities; and 337, Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and Assessment (including AU sections 337A and 337C). The proposed SAS would rescind AU sections 337B and 901, Public Warehouses—Controls and Auditing Procedures for Goods Held. The comment period ends April 30.
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