Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

New standards on audit evidence and auditing estimates: SASs 142 and 143

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So far in July, the AICPA has issued two new auditing standards:

The AICPA provides a list of Recently Issued Auditing and Attestation Standards: Information and Resources.

I will try to provide a condensed description of the condensed summary provided in the At a Glance press releases linked above.

Audit Evidence

SAS 142 subtly transitions us from a focus on obtaining sufficient appropriate audit evidence to evaluating the sufficiency and appropriate of audit evidence gathered and then considering whether there is enough evidence to reach a conclusion. Without reading the standard, the summary suggests a shift to critically assessing the quantity and quality of our evidence.

The standard also brings into discussion new technology and how that enters into an audit. Looks like professional skepticism is explicitly and more deeply incorporated into the standard.

SAS 142 will be effective for reporting periods ending on or after December 15, 2022. For most of us that means audits of 12/31/22 financial statements.

Accounting Estimates

SAS 143 brings into discussion the concept of estimation uncertainty. The standard provides scalability to cover the range of uncertainty going from simple to complex. At the assertion level it will add a requirement for separate assessment of risk and control risk. Overall there will be an increased focused on estimates and the risk of those estimates creating material errors.

SAS 142 will be effective for reporting periods ending on or after December 15, 2023. For most of us that means audits of 12/31/23 financial statements.


So the effective dates will first affect audits performed in early 2023 and early 2024.


Written by Jim Ulvog

July 13, 2020, 9:18 am at 9:18 am

Posted in Audits

Tagged with ,

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