New Auditing Standards SAS Nos. 142-145Code: 25-SAS142

Objectives: The objective of this course is to address the new auditing standards issued by the Auditing Standards Board as SAS Nos. 142-145.

Program Content:  The first segment of the course addresses SAS No. 142’s expanded guidance on audit evidence in a financial statement audit. Topics include: evaluating audit evidence; testing audit evidence; relevance and reliability of audit evidence including its source; susceptibility to management bias; corroborative or contradictory information; evaluating whether information is sufficiently precise and detailed for the auditor’s purposes; and use of automated tools and techniques.  

The second segment is a review of SAS No. 143’s guidance on accounting estimates including the degree of estimation uncertainty; risk assessment procedures related to accounting estimates; identifying and assessing the risks of material misstatement including responses to the assessment; indicators of possible management bias, and more.  

The third segment consists of a review of SAS No. 144’s changes to auditing standards in connection with use of specialists (management and auditor specialists) and using price information obtained from external sources.

The final section addresses significant changes made by SAS No. 145 to the auditor’s understanding of an entity and its environment, and the assessment of risks of material misstatement.

After reading the course material, you will be able to

• Identify an example of an attribute of information obtained as audit evidence
• Recognize actions an auditor should perform in evaluating information used as audit evidence
• Recognize attributes of information to be used as audit evidence
• Identify an attribute that affects the reliability of information used as audit evidence
• Recall functions on which an auditor can use automated tools and techniques
• Identify an example of an accounting estimate related to classes of transactions, account balances and disclosures identified in SAS No. 143
• Recognize how inherent and control risks should be assessed in accordance with SAS No. 143
• Recognize an example of an inherent risk factor
• Identify examples of approaches that can be performed in assessing the risks of material misstatement from accounting estimates
• Recall one of the amendments made to AU-C 501 by SAS No. 144 in connection with using the
• work of an external inventory-taking firm
• Identify some instances in which an auditor may conclude that a specialist’s work is not adequate
• Identify a type of risk assessment procedure that an auditor can use in accordance with SAS No. 145
• Recall examples of risk assessment procedures that an auditor may perform in SAS No. 145