The AICPA Auditing Standards Board issued a new standard Friday, July 10, that provides requirements and guidance to auditors for auditing accounting estimates.
Statement on Auditing Standards (SAS) No. 143 aims to enable auditors to appropriately address the increasingly complex scenarios that arise from new accounting standards and to enhance their focus on factors driving estimation uncertainty and potential management bias.
SAS No. 143 takes effect for audits of financial statements for periods ending on or after Dec. 15, 2023.