The AICPA Auditing Standards Board (ASB) proposed a new standard Thursday, Aug. 28, that enhances auditors' assessment of the risks of material misstatement in an audit of financial statements.
The proposed standard, based on an international auditing standard, enhances the requirements and guidance on identifying and assessing the risks of material misstatement, particularly guidance that addresses the entity's system of internal control.
The proposed standard also modernizes the current standard by including extensive new guidance on information technology.
ASB will accept feedback on the proposal at CommentLetters@aicpa-cima.com until Nov. 25.