AICPA updates audit standards related to external confirmations
July 20, 2026
A newly published AICPA standards update will affect how CPAs obtain audit evidence through external confirmation procedures.
The most significant change in Statement on Auditing Standards No. 150, External Confirmations, is a new requirement for auditors to perform external confirmation procedures for cash and cash equivalents held by third parties, unless certain conditions are met.
SAS No. 150 acknowledges direct access to information maintained by a knowledgeable external source as a way to satisfy requirements related to external confirmation procedures and provides related guidance.
The standards update becomes effective for audits of financial statements for periods ending on or after Dec. 15, 2028. Early adoption is possible. Read more.
