The AICPA Auditing Standards Board sharpened the audit profession’s focus on risk-based auditing this week with the release of a new standard on audit risk assessment.
Standard on Auditing Standards No. 145 aims to simplify terms to help auditors determine wich areas pose the greatest risks of material misstatement in an audit engagement and spend more time performing related procedures.
The standard also provides extensive IT guidance, guidance on maintaining professional skepticism and a new “stand-back” requirement intended to evaluate the completeness of an auditor’s identifications. Learn more.