3 major changes from clarified audit standards – high level overview

The AICPA has a very short article that highlights three of the many major changes. See How the Clarified Auditing Standards Will Affect You.

The highlights:

  • New audit report with new wording and section headings
  • Auditor must gain assurance the opening balances are correct – no more of the approach of just reviewing prior auditor’s workpapers
  • Engagement letter needed each year

If any of those are a complete surprise to you, perhaps you need to do some studying. 

I’m concerned that the new audit report will be a stumbling block for many.  My limited observations as a new peer reviewer suggest that quite a few CPAs have been struggling with implementing the risk assessment suite on audits and the new reporting concepts in SSARS #19 for comps & reviews.

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