The Auditing Standards Board (ASB) issued the second clarified auditing standard resulting from its clarity project, which aims to make U.S. GAAP easier to understand and apply and gives each standard a principles-based objective. Statement on Auditing Standards Audit Documentation (Redrafted) supersedes AU section 339, Audit Documentation.
The standard is expected to be effective for audits of financial statements for periods beginning on or after Dec. 15, 2010. The effective date is provisional but will not be earlier than Dec. 15, 2010. The clarified standard is available at http://tinyurl.com/8cfyhb. See also “Official Releases,” JofA, Feb. 09, page 90.
The ASB also issued two final standards on internal control. Statement on Standards for Attestation Engagements (SSAE) no. 15, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements , converges the standards practitioners use for reporting on a nonissuer’s internal control with the PCAOB’s Auditing Standard no. 5, An Audit of Internal Control That is Integrated with an Audit of Financial Statements. The SSAE supersedes AT section 501, Reporting on an Entity’s Internal Control Over Financial Reporting. It is effective for integrated audits for periods ending on or after Dec. 15, 2008. Earlier implementation is permitted. The SSAE is available at http://tinyurl.com/56jxmf .
Statement on Auditing Standards (SAS) no. 115, Communicating Internal Control Related Matters Identified in an Audit , was issued to eliminate differences within the AICPA’s audit and attest standards resulting from the issuance of SSAE no. 15. The SAS supersedes AU section 325, Communicating Internal Control Related Matters Identified in an Audit.
The SAS contains revised definitions of the terms “material weakness” and “significant deficiency”; revises the list of deficiencies in internal control that are indicators of material weaknesses; removes a list of deficiencies that ordinarily would be considered at least significant deficiencies; and contains a revised illustrative written communication to management and those charged with governance of material weaknesses and significant deficiencies
The SAS is effective for audits of financial statements for periods ending on or after Dec. 15, 2009. Earlier implementation is permitted. It is available at http://tinyurl.com/59gm78 .