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Article: Understanding the Changes in Risk Assessment Standards
- Article from:
- The CPA Journal
- Article date:
- July 1, 2009
- Author:
CopyrightCopyright New York State Society of Certified Public Accountants Jul 2009. Provided by ProQuest LLC. (Hide copyright information)
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As a discussion leader for continu- ing professional education (CPE) courses for 25 years, the author has witnessed many CPAs struggle to adjust their audit approach to comply with new standards. For the past 18 months, tins has been vividly evident as auditors of small, nonpublic companies ponder how to effectively comply with the "Risk Assessment Suite" of Statements on Auditing Standards (SAS) 104-111.
Comparing Standards
The basic requirements under the new risk assessment standards can be traced to previously issued standards. What has changed is how diese standards are applied and the level of documentation needed to support an audit opinion. As shown in Exhibit 1, a comparison of ...