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AICPA Releases New Audit Guide

Directions The American Institute of CPAs has published , Risk Assessment in a Financial Statement Audit, a new audit guide. The guide, available in e-book format, includes a revised definition of significant risk.

The guide is designed to help auditors implement Statement on Auditing Standards No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement.  SAS 145 takes effect for audits of financial statements for periods ending on or after December 15.

Also included is “a new requirement to assess control risk at the maximum level such that, if the auditor does not plan to test the operating effectiveness of controls, the assessment of the risk of material misstatement is the same as the assessment of inherent risk.”  There also revised requirements relating to audit documentation and new guidance on scaling the risk assessment process

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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