Guidelines issued by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) provide guidance for auditors performing financial statement audits. The goal is to maintain high-quality audits and ensure public trust in the auditing profession.
History of Statement on Auditing Standards:
- 1972: The ASB was formed to develop and issue auditing, attestation, and quality control standards.
- 1973: The ASB issued SAS No. 1, Codification of Auditing Standards and Procedures, which consolidated and replaced previous pronouncements.
- 1992: The ASB issued SAS No. 70, Service Organizations, to assess the internal controls of service organizations providing services to other entities.
- 1995: SAS No. 78, Consideration of Internal Control in a Financial Statement Audit: An Amendment to SAS No. 55, was issued, revising the definition and description of internal control.
- 2002: In response to high-profile accounting scandals, the ASB issued SAS No. 99, Consideration of Fraud in a Financial Statement Audit.
- 2006: The ASB issued SAS No. 104-111, known as the Risk Assessment Standards, to revise the auditor’s approach to risk assessment during an audit.
- 2011: SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, was issued as part of the Clarity Project to improve the standards’ understandability and applicability.
- 2011: SSAE 16 superseded SAS No. 70, aligning with international standards and providing a more comprehensive framework for reporting on controls at service organizations.
- 2012-2020: The ASB continued to issue new and revised standards, addressing various aspects of auditing, such as auditing accounting estimates (SAS No. 143), auditor reporting (SAS No. 134-141), and audit evidence (SAS No. 142).
The Statement on Auditing Standards has evolved throughout its history to address changes in the business environment, accounting standards, and regulatory requirements. These standards are the foundation for high-quality audits and help maintain public confidence in auditing.
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