New Audit Evidence Standard SAS 142: Good or Bad (Completed)

In July 2020, the AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 142, Audit Evidence. SAS No. 142 supersedes AU-C section 500, Audit Evidence and amends various other sections of SAS 122, Statements on Auditing Standards: Clarification and Recodification, as amended. SAS No. 142 explains what constitutes audit evidence in an audit of financial statements and sets out attributes of information that are considered by the auditor when evaluating information to be used as audit evidence. Taking these attributes into account assists the auditor in maintaining professional skepticism.

This session discusses the revisions to SAS No. 142 and addresses the evolving nature of transacting business as well as the evolution of audit services. Issues addressed include use of emerging technologies and techniques by both preparers and auditors, the application of professional skepticism, the expanding use of external information sources to provide audit evidence, and more broadly, the relevance and reliability of audit evidence.

Who Should Attend
Professionals in public accounting, corporate and Not-for-Profit management, consulting, and education who need the changes in auditing standards as updated.

Topics Covered

• Expanded guidance on evaluating whether sufficient appropriate audit evidence has been obtained
• Examples to illustrate how automated tools and techniques, such as audit data analytics, drones, or remote observation tools, may be used by the auditor and thus recognizes more prominently in the standard the increased use of automated tools and techniques
• Professional skepticism
• Management specialists need an update on section 501, Audit Evidence — Specific Considerations for Selected Items

Learning Objectives

• Recognize how to address the evolving nature of transacting business
• Identify the evolution of audit services
• Recognize how to address issues including the use of emerging technologies and techniques by both preparers and auditors
• Recognize how to address issues with the application of professional skepticism
• Identify how to explain the expanding use of external information sources to provide audit evidence and the relevance and reliability of audit evidence

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
Basic understanding of the auditing standards and their applications.

Advance Preparation
None