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

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

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

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.