Major Changes to Auditing Standards: Auditing Standards Board Clarity Project - SAS Nos. 122-133 - v10 (Course Id 1380)

Auditing - Auditing for Course Id 1380

This course explains the significant changes made to auditing standards by the Auditing Standards Board’s Clarity Project that resulted in the issuance of SAS Nos. 122-133. The course is written in a format that provides an overview by allowing the reader to review, recall and identify key provisions within the new standards.

NASBA QAS - Text - Technical - NASBA Registry - 1380

Course Learning Objectives

• Recall the structure of the new ASB Clarity Project and how each new standard is segregated
• Identify categories of laws and regulations that are found in AU-C 250
• Identify the scope of communications an auditor should make with respect to noncompliance with laws and regulations
• Identify some of the different types of deficiencies in internal control found in a financial statement audit
• Identify the indicators that may suggest there is a material weakness in internal control
• Identify the information that should be included in a communication of certain deficiencies in internal control
• Recognize the new audit report title
• Identify examples of headings that should be in the new auditor report
• Recall some of the modified opinion headings found in the new audit report
• Identify the new type of paragraph that is permitted in the audit report
• Identify some examples where an emphasis-of-matter paragraph is required in the audit report
• Identify the new group auditor rules including the responsibilities of parties involved, and the procedures to be performed
• Identify the different types of special purpose frameworks permitted under auditing standards
• Identify some of the elements that are required in the different types of special purpose reports
• Identify the general types of disclosures requires in special purpose framework financial statements
• Identify how an auditor can evaluate “professional judgment”
• Recognize some of the elements that must be in an engagement letter
• Identify the requirements that a successor auditor must satisfy in an initial audit engagement involving opening balances
• Identify an instance in which it may be necessary for an auditor to obtain a positive confirmation
• Identify when an auditor may not be required to use external confirmation procedures
• Identify a procedure an external auditor should perform with respect to an internal auditor
• Define the term “reasonable period of time”
• Identify an example of a mitigating plan as used in the evaluation for going concern
• Recognize how an auditor should report on going concern when there is substantial doubt
• Recall an example of a type of exempt offering covered by SAS No. 133

Chapter I
ASB’s Clarity Project

• Recall the structure of the new ASB Clarity Project and how each new standard is segregated

Chapter II
Replacement SASs with Substantive Changes

• Identify categories of laws and regulations that are found in AU-C 250
• Identify the scope of communications an auditor should make with respect to noncompliance with laws and regulations
• Identify some of the different types of deficiencies in internal control found in a financial statement audit
• Identify the indicators that may suggest there is a material weakness in internal control
• Identify the information that should be included in a communication of certain deficiencies in internal control
• Recognize the new audit report title
• Identify examples of headings that should be in the new auditor report
• Recall some of the modified opinion headings found in the new audit report
• Identify the new type of paragraph that is permitted in the audit report
• Identify some examples of where an emphasis of matter paragraph is required in the audit report
• Identify the new group auditor rules including the responsibilities of parties involved, and the procedures to be performed
• Identify the different types of special purpose frameworks permitted under the new auditing standards
• Identify some of the elements that are required in the different types of special purpose reports
• Identify the general types of disclosures requires in special purpose framework financial statements

Chapter III
Other Selected New SASs- Clarifying Changes Only

• Identify how an auditor can evaluate “professional judgment”
• Recognize some of the elements that must be in an engagement letter
• Identify the requirements that a successor auditor must satisfy in an initial audit engagement involving opening balances
• Identify an instance in which it may be necessary for an auditor to obtain a positive confirmation
• Identify when an auditor may not be required to use external confirmation procedures

Chapter IV
SAS Nos. 128-133

• Identify a procedure an external auditor should perform with respect to an internal auditor
• Define the term “reasonable period of time”
• Identify an example of a mitigating plan as used in the evaluation for going concern
• Recognize how an auditor should report on going concern when there is substantial doubt
• Recall an example of a type of exempt offering covered by SAS No. 133

Chapter IV - SAS Nos. 128-133

SAS No. 128: AU-C Section 610: Using the Work of Internal Auditors

SAS No. 129: Amendment to Statement on Auditing Standards No. 122 Section
Letters for Underwriters and Certain Other Requesting Parties, as Amended

SAS No. 130: An Audit of Internal Control Over Financial Reporting That Integrates with an Audit of Financial Statements

SAS No. 131: Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements

SAS No. 132: The Auditor's Consideration of an Entity’s Ability to Continue as a Going Concern

SAS No. 133: Auditor Involvement with Exempt Offering Documents

Review Questions and Suggested Solutions

Glossary