ASB issues SAS No. 129 to amend letters for underwriters auditing standard

BY KEN TYSIAC

The AICPA Auditing Standards Board (ASB) has amended its auditing standard on letters for underwriters and certain other requesting parties.

The ASB did not originally intend to significantly change or expand AU Section 634, Letters for Underwriters and Certain Other Requesting Parties, when it was redrafted and issued as AU-C Section 920, Letters for Underwriters and Certain Other Requesting Parties, as part of the clarity project.

But the ASB issued Statement on Auditing Standards (SAS) No. 129, Amendment to Statement on Auditing Standards No. 122 Section 920, Letters for Underwriters and Certain Other Requesting Parties, as Amended, to amend AU-C Section 920 in order to address implementation issues and avoid unintended changes to previous practice.

SAS No. 129 becomes effective for comfort letters issued on or after Dec. 15, 2014. Early implementation is encouraged.

The SAS also contains additional amendments to further clarify AU-C Section 920.

An executive summary about the new SAS provides more details and is available on the AICPA’s website.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA editorial director.

QUIZ

Personal happiness and new hires’ pay on the rise

The news of the past couple of weeks hit home with reports on personal financial satisfaction and pay for finance professionals. See how much you know about recent news reports with this quiz.

SPONSORED REPORT

Preventing and detecting fraud at not-for-profits

Organizations in all industries must deal with the potential for fraud to occur, and design controls to prevent and detect it. Environment, policies, and controls can help organizations steer clear of problems.

PROFESSIONAL LIABILITY SPOTLIGHT

The dangers of dabbling

To meet evolving marketplace needs, CPAs often look to diversify their service offerings. Firms can mitigate the risk of experiencing competency-related professional liability claims by implementing these basic steps.