ASB proposes amendments to clarified auditing standard on letters for underwriters

BY KEN TYSIAC

The AICPA Auditing Standards Board (ASB) proposed amendments Thursday to AU-C Section 920, Letters for Underwriters and Certain Other Requesting Parties.

AU-C Section 920 was issued as part of the ASB’s clarity project and is a redrafting of AU Section 634 of the same title. When the clarified standard was issued, the ASB did not intend to change or expand AU Section 634 in any significant respect.

The proposed amendments to AU-C Section 920 are designed to address implementation issues and avoid unintended changes to previous practice. The proposed amendments are contained in Proposed Statement on Auditing Standards, Amendment to Statement on Auditing Standards No. 122, Statements on Auditing Standards: Clarification and Recodification, Section 920, Letters for Underwriters and Certain Other Requesting Parties, as amended.

The proposal also includes additional amendments that would further clarify AU-C Section 920. Comments are due April 15 and can be submitted to Sherry Hazel at shazel@aicpa.org.

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

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