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.

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