ASB issues clarified SAS


The AICPA’s Auditing Standards Board issued Statement on Auditing Standards (SAS) no. 125, Alert That Restricts the Use of the Auditor’s Written Communication. The SAS, which is part of its Clarity Project, supersedes SAS no. 87, Restricting the Use of an Auditor’s Report (AICPA, Professional Standards, AU sec. 532 and AU-C sec. 905). It also amends other SASs and addresses the auditor’s responsibility, when required or the auditor decides, to include in the auditor’s report or other written communication issued by the auditor in connection with an engagement conducted in accordance with GAAS (referred to in this SAS as auditor’s written communication) language that restricts the use of the auditor’s written communication.

SAS no. 125 is effective for the auditor’s written communications related to audits of financial statements for periods ending on or after Dec. 15, 2012. For all other engagements conducted in accordance with GAAS, this SAS is effective for the auditor’s written communications issued on or after Dec. 15, 2012.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out