CCH Learning Center

Auditing Issues: The Risk Assessment Standards

The Auditing Standards Board (ASB) of the AICPA has issued eight new Statements on Auditing Standards (SAS) relating to the auditor's risk assessment process (collectively referred to as the Risk Assessment Standards). This course provides a general overview of the most significant aspects of these standards.

This body of literature brings significant changes to existing audit practice. Adoption of these new standards will enhance the auditor's application of the audit risk model in practice and will result in better quality and more effective audits. They will also add significantly to the time and effort required to perform an audit.

The standards reviewed are:

• SAS-104, Amendment to SAS-1, Codification of Auditing Standards and Procedures ('Due Professional Care in the Performance of Work')

• SAS-105, Amendment to SAS-95, Generally Accepted Auditing Standards

• SAS-106, Audit Evidence

• SAS 107, Audit Risk and Materiality in Conducting an Audit

• SAS-108, Planning and Supervision

• SAS-109, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement ('Assessing Risks')

• SAS-110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained ('Performing Procedures')

• SAS-111, Amendment to SAS-39, Audit Sampling