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