Auditing


The Auditing Standards Board exposes a suite of seven draft statements on auditing standards (SASs) ( www.aicpa.org/members/div/auditstd/auditrisk120202.asp ) to improve auditors’ application of the audit risk model. The proposed SASs require auditors to develop a better understanding of audited entities and their environments, to use that knowledge to more rigorously assess the risks of material misstatement of the entities’ financial statements and to better link the nature, timing and extent of audit procedures with assessed risks. The ED comprises the following proposed SASs: Amendment to Statement on Auditing Standards no. 95, Generally Accepted Auditing Standards; Audit Evidence; Audit Risk and Materiality in Conducting an Audit; Planning and Supervision; Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (Assessing Risks); Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained; and Amendment to SAS no. 39, Audit Sampling. Comments are due April 30.

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