New Auditing Standards: SAS Nos. 146-149

Exam Questions: 10
Course Level: Basic/Overview
Pages: 80 | Content: 70, Supplemental: 10
NASBA Area of Study: Auditing
Not Acceptable for: Enrolled Agents
Version: 8355

The objective of this course is to review four recently issued auditing standards: SAS Nos. 146-149. The first section reviews the requirements found in SAS No. 146 related to quality management of an audit engagement, including identifying the key elements of quality management, the important role and responsibilities of the engagement partner in managing the audit, and the importance of quality to all members of the audit engagement team. The second section informs the reader of the various changes made to AU-C 210, Terms of Engagement, by SAS No. 147 in connection with fraud and noncompliance with laws and regulations. Topics include clarifying requirements and guidance related to a successor auditor's inquiries of a predecessor auditor, responsibilities of the predecessor auditor to respond to successor auditor inquiries when authorized by management, and more. The third section addresses amendments made to AU-C 935, Compliance Audits, by SAS No. 148, to reflect changes made by recently issued auditing standards SAS No. 142 and 145. The course also identifies amendments to the appendix to AU-C 935 that identifies AU-C sections that are specifically excluded from application to compliance audits. Finally, SAS No. 149 addresses special considerations that apply to a group audit, including in circumstances in which component auditors are involved or when the group auditor makes reference to the audit of a referenced-to auditor. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. Prerequisites: General understanding of compilation and review and auditing standards. Course level: Basic/Overview.

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Course Information

Table of Contents
  • SAS No. 146: Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards
  • SAS No. 147: Inquiries of the Predecessor Auditor Regarding Fraud and Noncompliance with Laws and Regulations
  • SAS No. 148: Amendment to AU-C Section 935
  • SAS No. 149: Special Considerations - Audits of Group Financial Statements
  • To recall the date by which an engagement partner must take responsibility for determining that ethical requirements are fulfilled
  • To identify certain requirements an engagement partner must satisfy in performing an audit engagement
  • To recognize examples of resources assigned or made available by a firm to support performance of an audit engagement
  • To identify a type of unconscious bias defined in SAS No. 146
  • To identify when a successor auditor should request management to authorize a predecessor auditor's response to the successor auditor's inquiry
  • To recognize one of the new inquiries a successor auditor should make of a predecessor auditor by SAS No. 147
  • To recall the extent of a predecessor auditor's response to a successor auditor's inquiries when there are certain restrictions on the predecessor auditor
  • To identify an example of a recently issued auditing standard that SAS No. 148 incorporates into amendments to AU-C 935, Compliance Audits
  • To recall examples of inherent risk factors related to identifying and assessing risks of material misstatement in a compliance audit
  • To identify the party required to take overall responsibility for the quality on a group audit engagement in accordance with SAS No. 149

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