The AICPA Auditing Standards Board (ASB) recently issued Statement on Auditing Standards (SAS) No. 149, a standard that introduces a risk-based approach to planning and performing a group audit.
SAS No. 149, in superseding Section 600 of SAS No. 122, shifts the auditor’s approach in determining the components at which to perform audit work from identifying “significant components” to using professional judgment based on assessed risk.
The standard retains the two reporting options available to the group auditor in extant AU-C Section 600, referred to as “assuming responsibility for the work of component auditors” and “making reference to the audit of a component auditor.”
In SAS No. 149, the “assuming responsibility” option is now referred to as “being involved in the work of component auditors” or “when component auditors are involved.” Learn more.