The AICPA Auditing Standards Board issued two exposure drafts resulting from its clarity project:
- Proposed Statement on Auditing Standards (SAS), Quality Control for an Audit of Financial Statements. The proposed SAS specifies quality control procedures at the engagement level that assist the auditor in achieving the objectives of the quality control standards. Because these procedures are required to be established by QC section 10, A Firm’s System of Quality Control, the proposed SAS is not expected to result in a change to existing practice. It supersedes AU section 161, The Relationship of Generally Accepted Auditing Standards to Quality Control Standards, which contains no requirements.
- Proposed Statement on Quality Control Standards (SQCS), A Firm’s System of Quality Control (Redrafted). The proposed SQCS does not change or expand QC section 10 in any significant respect, according to the ASB. It supersedes QC section 10, A Firm’s System of Quality Control.
The comment period for each ED ends Aug. 31.