The Auditing Standards Board recently issued six clarified Statements on Auditing Standards related to risk assessment resulting from its clarity project, through which all of its auditing standards will be redrafted over the next one to two years. The board also issued additional proposed SASs.
The goal of the clarity project is to make auditing standards easier to read, understand and apply. Consistent with the ASB’s strategy to converge its standards with those of the International Auditing and Assurance Standards Board, each proposed standard has been redrafted using the corresponding International Standards on Auditing as the basis.
The clarified Risk Assessment Standards, represent the redrafting of SAS nos. 106–110. They are:
-
Clarified
SAS, Audit Evidence (Redrafted);
-
Clarified
SAS, Materiality in Planning and Performing an Audit;
-
Clarified
SAS, Evaluation of Misstatements Identified During the
Audit;
-
Clarified
SAS, Planning an Audit;
-
Clarified
SAS, Understanding the Entity and Its Environment and Assessing
the Risks of Material Misstatement (Redrafted); and
- Clarified SAS, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained (Redrafted)
The SASs are 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.
