The American Institute of Certified Public Accountants (AICPA) has released an exposure draft on auditing standards that is significantly more detailed that the current SAS No. 41. The new statement, if approved, will replace SAS No. 41.
The AICPA is soliciting public comments on the exposure draft now through August 27.
Among other things, the new statement:
- Favors the phrase "audit documentation" over "working papers"
- Reminds auditors that review of audit documentation is an inspection procedure which can be used to determine the level of a firm's compliance with its quality control policies
- Calls for documentation of significant audit findings or issues as well as the measures to address them and the basis for the conclusions reached.
Comments on the exposure draft should be directed to Gretchen Fischbach at [email protected].