ASB completes alignment of GAAS with new auditor reporting standards

The AICPA Auditing Standards Board (ASB) on Wednesday completed its yearlong effort to conform generally accepted auditing standards with the provisions of its new auditor reporting standards.

The final step in the conforming process was the issuance of Statement on Auditing Standards No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137.

In May 2019, the ASB issued SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements. The standard was designed to enhance the communicative value of the auditor’s report while aligning GAAS with the standards of the International Auditing and Assurance Standards Board and the PCAOB.

Since that issuance, the ASB has worked to conform GAAS to the requirements of SAS No. 134 and address certain practice issues that have arisen in certain other standards since the most recent revision to these standards. SAS No. 140 represents the final stage of that work.

SAS No. 140’s amendments include revisions to AU-C Section 935, Compliance Audits, for consistency with:

• The most recent issuance of Uniform Guidance;
• Changes in the Office of Management and Budget’s compliance supplement; and
• The most recently issued Yellow Book.

SAS No. 140 takes effect for periods ending on or after Dec. 15, 2020; early implementation is not permitted.

However, the ASB is holding an open meeting April 20 to consider delaying for one year the effective dates of SAS Nos. 134 through 140, while permitting early implementation, as a result of the coronavirus pandemic.

More information is available on the AICPA’s website.

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