New Auditor Report Standards: SAS 134 -140

Description

Get ahead by evaluating the impact of this additional suite of standards designed to refocus on the auditor’s report with additional information communicated to users. Changes in the language and position of the auditor’s opinion and basis of the opinion will be presented in the front of the auditor’s report letter. Other changes as a result of the auditor’s report letter language will include the engagement letter and the representation letter. 

An immediate and thorough evaluation of the impact of these standards will be required. The objective of this group of standards will be to provide value to users by relocating the auditor’s opinion and the basis for the auditor’s opinion to a more visible position in the front of the report. Also, the revised language will be more transparent in defining the responsibilities of the auditor as well as the entity’s management. 

These SASs address concerns of users for more communication and better understanding of issues encountered by the auditor during the conduct of the audit. Generally accepted auditing standards will now align with the Standards of the PCAOB and the IAASB.

Highlights

• Modifications, replacements, and additions to guidance
• Format and content of auditor report with  examples
• New requirements to disclosure Key Audit Matters
• New requirements for going  concern
• Performance requirements for ERISA audits
• Reporting on ERISA required supplemental schedules
• Effect of new standards on procedures, communication of reportable conditions, and auditor responsibilities for other information included in annual reports
• Effect of new standards on related party transactions, fraud, and communication with those charged with governance

Objectives

Participants will be able to:

• Identify changes in the reporting model
• Identify how the report letter will set users’ expectations
• Identify Key Audit Matters (KAM) and when they are required to communicate them
• Review examples for the form and content of the report

Designed For

CPAs in small to medium size public accounting firms that conduct audits of non-public entities