The effective dates of seven private company auditing standards were delayed for one year as the result of a vote Monday by the AICPA Auditing Standards Board (ASB).
Delaying the effective dates of Statements on Auditing Standards (SASs) No. 134–140 provides relief to audit firms amid the challenges created by the coronavirus pandemic. The delay is designed to ensure that firms will be able to implement the standards in the highest-quality manner possible when distractions due to the pandemic subside.
The standards are primarily related to substantial changes to the auditor’s report. The standards now will take effect for audits of financial statements for periods ending on or after Dec. 15, 2021.
Early implementation is permitted, and the ASB expressed its intent that SASs No. 134–140 be implemented at the same time. Firms that already have methodologies or tools in place and implementation planned may wish to move forward with those plans despite the change in the effective date, according to AICPA Chief Auditor Bob Dohrer, CPA, CGMA.
“The AICPA has heard from numerous small and midsize CPA firms that they and their clients are struggling due to the pandemic,” Dohrer said in a news release. “We understand that many firms may not have the time or resources to focus on effective implementation of SASs No. 134–140 this year. We hope the deferral will offer firms relief and an opportunity to implement the standards in the highest-quality manner possible when the distractions from the pandemic have diminished.”
SASs No. 134–140 are interrelated and, within this group, subsequent SASs amend previously issued SASs. The effective dates of SASs No. 134–140 were aligned so that they would be implemented at the same time. Accordingly, the ASB recommends that all these SASs be implemented concurrently.
For more news and reporting on the coronavirus and how CPAs can handle challenges related to the pandemic, visit the JofA’s coronavirus resources page.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.