The new statements, SAS No. 104 through SAS No. 111, will be effective for audits of financial statements for periods beginning on or after Dec. 15, 2006.
Collectively, the Risk Assessment Standards (PDF) establish standards and provide guidance concerning the auditor's assessment of the risks of material misstatement (whether caused by fraud or error) in a non-issuer financial statement audit; design and performance of tailored audit procedures to address assessed risks; audit risk and materiality; planning and supervision; and audit evidence.
"Implementation of the new standards may require auditors to change their approach and perhaps the nature of the audit procedures performed," said Chuck Landes, AICPA Vice President, Professional Standards and Services. "We believe that these standards, with support from the AICPA, will allow our members to find ways to improve the effectiveness of their audit engagements."
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