The AICPA has issued a proposed SAS to clarify and improve the risk assessment standards. For the past few years, the AICPA has focused its audit quality initiatives on risk assessment. Now that the IAASB has issued a final standard, the AICPA is proposing changes to align with the ISAs but also help firms better understand how to use risk assessment to plan and perform effective and efficient audits. This video blog covers the major changes in the standards. Comments are due November 25th.
The International Auditing and Assurance Standards Board has issued a trio of international audit quality proposals. The proposals address risk assessment for firms to address quality objectives, new guidance on selection of quality reviewers and an update to ISA 220. Comments are due July 1, 2019.