Improving the Clarity of Auditing Standards
The Auditing Standards Board (ASB) has redrafted all of the auditing (AU) sections in the Codification of Statements on Auditing Standards (contained in AICPA Professional Standards) now reflecting the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply.
The vast majority of the clarified standards were issued in 2011 and became effective for calendar year 2012 audits. The clarified standards have been codified as AU-C sections in AICPA Professional Standards. Among other improvements, generally accepted auditing standards (GAAS) now more clearly states the objectives of the auditor and the requirements with which the auditor has to comply when conducting an audit in accordance with GAAS.
As the ASB redrafted the standards for clarity, it also converged the standards with the International Standards on Auditing (ISAs), issued by the International Auditing and Assurance Standards Board (IAASB)
The AICPA offers guidance and training on the Audit Clarity Standards, including:
Video Library
In addition to the featured video above, videos discussing the following areas of the Clarity Standards are also available on AICPA TV:
Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards
- The Clarified SASs, Audit Documentation, and Audit Considerations for Smaller, Less Complex Entities
- Elements of the Clarified SASs and Considerations for Audits of Smaller Less Complex Entities
Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
- Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosure
- Understanding the Estimation Process
- Responding to Significant Risks in Auditing Accounting Estimates
- Auditing Accounting Estimates: Considerations for Audits of Smaller, Less Complex Entities
Using the Work of Others
- Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)
- Significant Components
- Component Auditors, Materiality and Communication in a Group Audit
- Auditor's Reports
- Special Reports
- Audit Documentation
Guidance
- Effective Dates for AU-C Sections of the Clarity Project
- Auditing Standards Board Clarity Project (Powerpoint presentation)
- Scalability of Generally Accepted Auditing Standards According to the Size and Complexity of an Entity
- Mapping of Superseded AU Sections to AU-C Sections
- Clarity Project: Questions and Answers
- Summary of Clarified Auditing Reporting Standards
The AICPA has collected archive information on the Clarity Project, available on the Archive page.
Publications
- Clarity Standards (AU-C sections), contained in AICPA Professional Standards
- AICPA Student Members are eligible to access Professional Standards online (and many other AICPA publications, including the two Audit Risk Alerts below) at student discount rates
- SAS No. 128, Using the Work of Internal Auditors
- Practice Aid Related-Party Audit Considerations: A Case Study Approach
- Practice Tool The Auditor's Report: Comprehensive Guidance and Examples
- Practice Tool The Engagement Letter: Best Practices and Examples
- Audit Risk Alert Understanding the New Clarified Auditing Standards
- Audit Risk Alert Understanding the Responsibilities of Auditors for Audits of Group Financial Statements
- Codification of Statements on Auditing Standards
Tools and Toolkits
- PCPS Clarified Auditing Standards Toolkit (for PCPS members)
- Not a PCPS Member? Purchase the Clarified Auditing Standards Toolkit from the AICPA Store
- Excerpt of Preface to the Clarified Auditing Standards Snapshot Overview (included in the PCPS Clarified Auditing Standards Toolkit)
