ASB improves understanding.Simultaneously updating both statements on auditing standards Statements on Auditing Standards, commonly abbreviated as SAS, provide guidance to external auditors on generally accepted auditing standards (abbreviated as GAAS) in regards to auditing an entity and issuing a report. and statements on standards for attestation engagements, the American Institute of CPAs auditing standards board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public approved SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. no. 83 and SSAE no. 7, both titled Establishing an Understanding With the Client. For details, see "Auditing: Seeing Eye to Eye," JofA, May 97, page 4. Auditing Standards Technical Manager Kim Gibson told the Journal there was little change between the exposure draft and the final statement. "However, we made a change to indicate a practitioner has to obtain an understanding with each engagement. Both the SAS and SSAE cross-refer to Statement on Quality Control Standards no. 2, System of Quality Control for a CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. Firm's Accounting and Auditing Practice, which requires that a CPA firm provide policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental for obtaining an understanding with the client regarding services to be performed. Also added was language explaining that obtaining an understanding reduces the risk that the client and the auditor will misinterpret the needs or expectations of the other party. The effective dates for both SAS no. 83 and SSAE no. 7 have changed from the original exposure draft; both statements are now effective for engagements for periods ending on or after June 15, 1998, with earlier application permitted. |
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