Clarified Risk Standard Proposals Available


The AICPA released for exposure certain risk assessment standards rewritten as part of its clarity project. The proposed risk assessment standards have been redrafted into a format that clearly identifies objectives, relevant definitions, requirements, and application and other explanatory material. Comments on the exposure drafts are due April 30.

           

The clarified risk assessment standards released for exposure supersede SAS no. 106, Audit Evidence, SAS no. 107, Audit Risk and Materiality in Planning an Audit, SAS no. 108, Planning and Supervision, SAS no. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (Redrafted), and SAS no. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained (Redrafted).

           

The clarity project is similar to one recently completed by the IAASB that aims to clarify its ISAs. The AICPA’s Auditing Standards Board developed a plan to converge U.S. GAAS with the ISAs while avoiding unnecessary conflict with PCAOB standards.

 

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.