AICPA’s New Auditing Standard Provides Additional Guidance on the Use of Specialists and Pricing Information

June 8, 2021

NEW YORK (June 8, 2021) – The American Institute of CPAs (AICPA) Auditing Standards Board (ASB) has issued Statement on Auditing Standards (SAS) No. 144, Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources. SAS No. 144 amends SAS No. 122, sections 501 and 620, and SAS No. 143, Auditing Accounting Estimates and Related Disclosures (AU-C section 540 in AICPA Professional Standards). It addresses certain comments that were received on the exposure draft that resulted in the issuance of SAS No. 143.

“We heard feedback that more guidance on auditing the fair value of financial instruments would be helpful. This new standard provides that and has a particular focus on the use of pricing services,” said AICPA Chief Auditor Jennifer Burns, CPA. “We’ve also taken the opportunity to modernize our standards on management’s and auditors’ use of specialists, which is becoming more common due to the growing complexity of today’s financial reporting.”

The SAS provides guidance in AU-C section 501 on applying SAS No. 143 when:

  • management has used the work of a specialist in developing accounting estimates
  • evaluating management’s estimates related to the fair value of financial instruments
  • using the work of an auditor’s specialist.

You can find additional details on SAS No. 144 here. The SAS becomes effective for audits of financial statements for periods ending on or after December 15, 2023.

About the AICPA Auditing Standards Board

The ASB is the senior committee of the AICPA designated to issue auditing, attestation, and quality control standards applicable to the performance and issuance of audit and attestation reports for non-issuers. Its mission is to develop and communicate comprehensive performance, reporting, and quality control standards and practice guidance to enable auditors of non-issuers to provide high quality, objective audit and attestation services at a reasonable cost and in the best interests of the profession and the beneficiaries of those services, with the ultimate purpose of serving the public interest by improving existing and enabling new audit and attestation services.

About the American Institute of CPAs 

The American Institute of CPAs® (AICPA®) is the world’s largest member association representing the CPA profession, with more than 428,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.