Update: The AICPA will delete TQA 8100.03 from its literature by the end of May 2019 due to unintended misinterpretation.
A newly revised AICPA Technical Question and Answer (TQA) provides nonauthoritative guidance for performing an audit and reporting on an entity’s prior-period financial statements.
For such audits, TQA 8100.03 states that the auditor should use, in their entirety, the auditing standards and form of the auditor’s report that are in effect at the time the audit is performed — unless an auditing standard provides transitional guidance regarding its implementation.
The TQA explains that because the previous auditing standards have been superseded by the current auditing standards, they are no longer in effect when the audit is performed.
The revised TQA guidance is timely because several new auditing standards are scheduled to become effective for audits of financial statements for periods ending on or after Dec. 15, 2020.
These include new standards on auditor reporting, and on financial statement audits of employee benefit plans subject to the Employee Retirement Income Security Act.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.