Auditing Standards Board issues Statement on Auditing Standards No. 126


The AICPA’s Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern (Redrafted), as a result of its Clarity Project to supersede SAS No. 59, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern, as amended (AICPA, Professional Standards, AU sec. 341 and AU-C sec. 570).

SAS No. 126 does not change or expand SAS No. 59, as amended, in any significant respect. A summary is available here.

The ASB moved forward with the clarity redraft of SAS No. 59, as amended, so that it is consistent with the format of the other clarified SASs that were recently issued as SAS No. 122, Statements on Auditing Standards: Clarification and Recodification; SAS No. 124, Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country; and SAS No. 125, Alert That Restricts the Use of the Auditor’s Written Communication.

However, the ASB decided to delay convergence with International Standard on Auditing 570, Going Concern, pending FASB’s anticipated development of accounting guidance addressing going concern.

SAS No. 126 is effective for audits of financial statements for periods ending on or after Dec. 15, 2012. SAS No. 126 is available for purchase at the AICPA Store by searching on product number ASASST126P.

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.