Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Clarified audit standards can be used for audits before the effective date

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Here’s a tricky situation for you. A client retained your firm to audit their ’13, ’12, and ’11 calendar year financial statements so they can get their first bank loan. The clarified audit standards apply to the ’13 and ’12 financials, since the effective date was years ending after 12/15/12.

What audit standards do you use to audit the ’11 financials?

The AICPA has said the clarified standards can be used to perform audits for periods before the clarified standards went into effect. The audit documentation should specify which audit standards were used in the audit.

You can find the answer in TIS 8100.03, Using Current Auditing Standards for Audits of Prior Periods.

The same answer would apply if for some reason you needed to reaudit years earlier than 2012.

(Hat tip: CPA-Scribe – Using Current Auditing Standards for Audits of Prior Periods)

Written by Jim Ulvog

May 13, 2014, 7:47 am at 7:47 am

Posted in Audits

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