TITLE

Practice Issues and Questions & Answers Relating to Statement on Auditing Standards No. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement

AUTHOR(S)
Georgiades, George
PUB. DATE
August 2007
SOURCE
GAAS Update Service;8/15/2007, Vol. 7 Issue 15, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
With the release of Statements on Auditing Standards (SAS) Nos. 104 through 111 (collectively referred to as the "Risk Assessment Standards"), significant changes are expected to result to existing audit practice. The Risk Assessment Standards are effective for audits of financial statements for periods beginning on or after December 15, 2006. One of the Risk Assessment Standards, SAS No. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (SAS-109), requires the auditor, among other matters, to: (1) perform risk assessment procedures to obtain an understanding of the entity and its environment, including its internal control; (2) discuss the susceptibility of the entity's financial statements to material misstatements with members of the audit team; (3) determine whether changes have occurred to information obtained in prior periods, such as internal control and risk assessments, which would affect its relevance to the current audit if the auditor plans to rely on that information; and (4) identify and assess the risks of material misstatement at the financial statement level and at the relevant assertion levels for classes of transactions, account balances, and disclosures. SAS-109 was covered in detail in the August 30, 2006, September 15, 2006, and September 30, 2006 GAAS Update Service . This GAAS Update Service focuses on practical issues relating to SAS-109 by using a "Question & Answer" format designed to provide practical discussion, advice, and specific implementation guidance.
ACCESSION #
25999623

 

Related Articles

  • Practice Issues and Questions & Answers Relating to Statement on Auditing Standards No. 111, Amendment to Statement on Auditing Standards No. 39, "Audit Sampling.". Georgiades, George // GAAS Update Service;10/30/2007, Vol. 7 Issue 20, p1 

    The article offers information on the recently released Statements on Auditing Standards No. 111, collectively referred to as the Risk Assessment Standards. The new standards are effective for audits of financial statements for periods beginning on or after December 15, 2006. The significant...

  • PCAOB Auditing Standards No. 8 through No. 15 on Risk Assessment.  // GAAS Update Service;10/30/2010, Vol. 10 Issue 20, p1 

    The article presents the Public Company Accounting Oversight Board's (PCAOB) auditing standards No. 8 to No. 15 on financial risk assessment in the U.S. It highlights the eight auditing standards related to the auditor's assessment of the risks of item misstatement in the financial statements...

  • Farewell, SAS 70. Parting is not such sweet sorrow. MARCUCCI, RHONDA // Employee Benefit News;Apr2011, Vol. 25 Issue 5, p12 

    The article focuses on the replacement of the Statement on Auditing Standards No. 70: Service Organizations by Standards for Attestation Engagement SSAE No. 16 in the U.S. As reported, there were complaints about SAS 70 that requires auditors to assess control risk provided by management with a...

  • Practice Issues and Questions & Answers Relating to Statement on Auditing Standards No. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained. Georgiades, George // GAAS Update Service;8/30/2007, Vol. 7 Issue 16, p1 

    The article provides an overview of the Statement on Auditing Standards (SAS) No. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained. It offers significant guidance for determining when, and whether, it is appropriate to use audit evidence...

  • Sneaking a Peek: How the New Auditing Standards on Risk Assessment May Affect Fraud Huddles. Hayes, Arthur A. // Journal of Government Financial Management;Fall2006, Vol. 55 Issue 3, p68 

    The article reports on how the new auditing standards on risk assessment may affect fraud huddles. The new standards for risk assessment are contained in the Statements on Auditing Standards (SAS) 109. The standards should be implemented on or after December 15, 2006. However, there are several...

  • Huddle, Huddle, Toil and Trouble: A Time to Re-Examine the Curse of the Expectation Gap. Hayes, Arthur // Journal of Government Financial Management;Winter2006, Vol. 55 Issue 4, p68 

    The article offers information on the huddle requirements of auditing standards on risk assessment in the U.S. A comparison between the huddle requirements of these standards and Statements on Auditing Standards No. 99 is presented. The author examines the impact of the introduction of these...

  • Summary & Highlights. Weiss, Judith // Miller GAAP Update Service;6/30/2004, Vol. 4 Issue 12, p1 

    Focuses on the implementation of the Statement on Auditing Standards No. 69 for the preparation of financial statements. Efforts of the U.S. Financial Accounting Standards Board (FASB) to answer questions on its pronouncements; Replacement of the Staff Implementation Guides with FASB Staff...

  • Post balance sheet events.  // Accountancy;May83, Vol. 94 Issue 1077, p5 

    This article reports on the issuance of the Auditing Statement No. 13 titled Audit Considerations in Respect of Post Balance Sheet Events, in Great Britain in May 1983.

  • Auditing Standards Board Update March 2010. Taylor, Mark H. // Auditor's Report;Spring2010, Vol. 33 Issue 2, p55 

    The article highlights the content and outcomes of two Auditing Standards Board (ASB) meetings held in Phoenix, Arizona on October 26-30, 2009 and Amelia Island, Florida on January 11-14, 2010. Discussions relative to revisions to several proposed Statements on Auditing Standards (SAS) are...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics