The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) issues guidelines to ensure high-quality audits and maintain public trust in the auditing profession. The Statement on Auditing Standards (SAS) provides a framework for auditors performing financial statement audits, with a focus on understanding an entity’s internal control to plan the audit effectively.
History and Evolution
The ASB was formed in 1972 to develop and issue auditing, attestation, and quality control standards. Key milestones include:
- SAS No. 1: Issued in 1973, consolidating and replacing previous pronouncements.
- SAS No. 70: Issued in 1992 to assess internal controls of service organizations.
- SAS No. 78: Issued in 1995, revising the definition and description of internal control.
- SAS No. 99: Issued in 2002 in response to high-profile accounting scandals.
- SAS No. 104-111: Issued in 2006 as part of the Risk Assessment Standards.
- SAS No. 122: Issued in 2011 as part of the Clarity Project to improve standards.
- SSAE 16: Superseded SAS No. 70 in 2011, aligning with international standards.
Key Standards and Revisions
The ASB has continued to issue new and revised standards addressing various aspects of auditing, including:
- Auditing accounting estimates: SAS No. 143.
- Auditor reporting: SAS No. 134-141.
- Audit evidence: SAS No. 142.
These standards have evolved to address changes in the business environment, accounting standards, and regulatory requirements, ensuring the foundation for high-quality audits and maintaining public confidence in auditing.
