The AICPA's Auditing Standards Board (ASB) has issued exposure drafts (EDs) of new Proposed Statements on Auditing Standards (SASs) and proposed amendments to other SASs.
Proposed SAS, Omnibus Statement on Auditing Standards – 2018.
The Exposure Draft, Proposed Statements on Auditing Standards, Auditor Reporting and Proposed Amendments―Addressing Disclosures in the Audit of Financial Statements (Auditor Reporting), proposes four new SASs and amendments to several others. The proposed SASs would generally converge the AICPA auditor reporting standards with those of the International Standard on Auditing (ISA) by the International Auditing and Assurance Standards Board (IAASB).
Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report.
If adopted as proposed, the proposed auditor reporting SASs also would supersede certain sections of SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, as amended. The exposure draft also proposes amendments relating to disclosures in the audit of financial statements with the proposed changes to auditor reporting.
If adopted as proposed the standard and related proposed amendments would be effective no earlier than for audits of financial statements for periods ending on or after June 15, 2019, depending on the timing of finalizing the proposed standards and amendments. Because the proposed standards and amendments are interrelated, all of them would be required to be adopted concurrently. It is anticipated that early implementation will not be permitted.
The Exposure Draft, Proposed SAS, The Auditor's Responsibilities Relating to Other Information Included in Annual Reports (Other Information), if adopted as proposed, would supersede AU-C section 720, Other Information in Documents Containing Audited Financial Statements. This proposed SAS would generally converge the AICPA other information standard with that of the IAASB's ISA 720 (Revised), The Auditor's Responsibilities Relating to Other Information.
The ASB provided input to the IAASB in the latter's project to clarify the requirements applicable to an auditor's use of other information.
Take certain actions with respect to identified inconsistencies and misstatements.
If adopted as proposed, the standard will be effective for audits of financial statements for periods ending on or after June 15, 2019. This date is provisional but will not be earlier than June 15, 2019. Early implementation would not be permitted.
If adopted as proposed, the standard will be effective for audits of financial statements for periods ending on or after June 15, 2019. This date is provisional but will not be earlier than June 15, 2019.
The comment deadline for all three exposure drafts is May 15, 2018.