ASB exposes clarified auditing standard on internal audit


The Auditing Standards Board (ASB) has exposed a new, clarified standard that applies to use of the work of internal auditors.

With the issuance of the Proposed Statement on Auditing Standards (SAS), Using the Work of Internal Auditors, the ASB has completed the clarity project redrafting of its last unclarified AU section in the AICPA Professional Standards.

The proposed SAS would supersede AU Section 322 and AU-C Section 610, The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements.

Amendments include significant changes to AU-C Section 315, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. An explanatory memorandum describing the most significant changes to the SAS is provided in the exposure draft.

Comments are sought by July 15 and should be addressed to Sherry Hazel at shazel@aicpa.org.

Readers are specifically asked:

  • To respond to the proposed requirements and application guidance relating to using internal auditors in a direct assistance capacity.
  • Whether the changes from the requirements and guidance included in International Standard on Auditing No. 610 (Revised 2013), Using the Work of Internal Auditors, are appropriate.

 

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.