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Auditing Standards Board issues additional exposure drafts under clarity project.

The Auditing Standards Board has issued the following Proposed Statements on Auditing Standards resulting from its Clarity:

* Audits of Group Financial Statements (Including the Work of Component Auditors: Comment period ends Dec. 15. Supersedes AU section 543, Part of Audit Performed by Other Independent Auditors, in AICPA Professional Standards. Read the key differences between the proposed SAS and AU section 543, as well as a description of a number of terminology additions and changes.

* Related Parties (Redrafted): Comment period ends Dec. 15. Supersedes AU section 334, Related Parties, in AICPA Professional Standards. Read how the premise of the existing AU section 334 contrasts from the proposed SAS.

* Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures (Redrafted): Comment period ends Nov. 30. Supersedes AU sections 328, Auditing Fair Value Measurements and Disclosures, and 342, Auditing Accounting Estimates, in AICPA Professional Standards. The proposed SAS does not change or expand SAS No. 57 or SAS No. 101 in any significant respect.

Auditing Standards Board Withdraws SAS No. 69; GAAP Hierarchies Incorporated into FASB, GASB, FASAB Literature

The hierarchies of generally accepted accounting principles (GAAP hierarchies) of nongovernmental, state and local, and federal reporting entities have resided in SAS No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles, in the auditing literature. The Financial Accounting Standards Board, the Governmental Accounting Standards Board and the Federal Accounting Standards Advisory Board have issued the following pronouncements that incorporate their GAAP hierarchy into their respective authoritative literature:

* FASB Statement No. 162, The Hierarchy of Generally Accepted Accounting Principles, as superseded by FASB Statement No. 168, The FASB Accounting Standards Codification[TM] and the Hierarchy of Generally Accepted Accounting Principles--a replacement of FASB Statement No. 162

* GASB Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments

* Statement of Federal Financial Accounting Standards 34, The Hierarchy of Generally Accepted Accounting Principles, Including the Application of Standards Issued by the Financial Accounting Standards Board

Therefore, the ASB has withdrawn SAS No. 69, effective Sept. 2009. The related interpretation, "The Auditor's Consideration of Management's Adoption of Accounting Principles for New Transactions or Events," has also been deleted.
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Publication:CPA Letter
Date:Oct 1, 2009
Words:361
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