ASB proposes conforming amendments, addresses practice issues

The AICPA Auditing Standards Board (ASB) proposed amendments Tuesday that would conform sections of its codification to its recently issued standards on auditor reporting and the auditor’s responsibilities relating to other information included in annual reports.

In the exposure draft, the ASB also proposed amending certain AU-C sections to address practice issues that have arisen since they were revised recently.

The conforming amendments reflect changes necessary after the issuance earlier this year of Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, and SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports.

Proposed SAS Amendments to AU-C Sections 725, 730, 930, 935, and 940 also amends certain AU-C sections, in particular AU-C Section 935, Compliance Audits, to address practice issues that have arisen since the most recent revisions that were made to them.

The proposal also reflects the amended requirements to AU-C Section 700, Forming an Opinion and Reporting on Financial Statements, made by the final SAS, Amendments to the Description of the Concept of Materiality, that the ASB published last week.

“This proposed SAS continues the efforts of the Auditing Standards Board to provide necessary transparency into the basis for the auditor’s opinion and the responsibilities of both entity management and auditors in unique reporting circumstances and continues our efforts to address practice issues as they arise,” AICPA Chief Auditor Bob Dohrer, CPA, CGMA, said in a news release.

Comments on the proposal will be accepted through Feb. 10. Comments should be submitted in Microsoft Word format and emailed to CommentLetters@aicpa-cima.com.

— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.