ASB to vote on whether to propose amendments to two clarified auditing standards

BY KEN TYSIAC

The AICPA Auditing Standards Board (ASB) will vote Aug. 16 on whether to issue an exposure draft to propose amending two clarified standards that take effect Dec. 15.

In response to member requests for further clarity, the ASB plans to propose Omnibus Statement on Auditing Standards—2012. This proposed statement on auditing standards would amend the following two sections of SAS No. 122, Statements on Auditing Standards: Clarification and Recodification:

  • Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (AICPA, Professional Standards, AU-C sec. 600)
  • Section 800, Special Considerations—Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks (AICPA, Professional Standards, AU-C sec. 800)


The exposure draft proposes to amend AU-C section 600 to, among other things, permit making reference to the audit of a component auditor in the auditor’s report on the group financial statements when the component’s financial statements are prepared using a different financial reporting framework than that used for the group financial statements if certain criteria are met, and the ASB is specifically seeking comments on this issue.

In addition, the exposure draft proposes to amend AU-C section 800 to add a definite set of criteria having substantial support that is applied to all material items appearing in financial statements to the bases of accounting defined as special purpose frameworks.

The vote on whether to issue the proposed SAS for exposure will take place during an open ASB meeting to be held by conference call at 10 a.m. ET on Aug. 16. Those who wish to attend the call can register on the ASB’s meeting page at the AICPA’s website or contact Sherry Hazel at shazel@aicpa.org. The proposed SAS may be viewed on the ASB meeting page.

The comment period on the ED is expected to end Oct. 30, and the ASB plans to issue a final SAS to be effective Dec. 15.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

COLUMN

Deflecting clients’ requests for defense and indemnity

Client requests for defense and indemnity by the CPA firm are on the rise. Requests for such clauses are unnecessary and unfair, and, in some cases, are unenforceable.