The ASB issues Statement on Auditing Standards no. 101,
Auditing Fair Value Measurements and Disclosures. It
addresses audit considerations relating to the measurement and
disclosure of assets, liabilities and specific components of equity
presented or disclosed at fair value in financial statements. The SAS
is effective for audits of financial statements for periods beginning
on or after June 15, 2003, although the board permits earlier
application. Copies of the SAS (product no. 060703) can be ordered
from the AICPA at 888-777-7077.
The Institute’s audit and attest standards team releases
nonauthoritative guidance in the form of a free tool kit, Auditing
Fair Value Measurements and Disclosures. It includes practical
recommendations, illustrative audit programs and disclosure checklists
to help auditors understand and apply statements on auditing standards
when auditing fair value measurements and disclosures relating to
business combinations, goodwill and certain impairment situations. The
tool kit can be downloaded from the AICPA Web site at
www.aicpa.org/download/auditstd/finaltoolkit.pdf .
