Materiality Changes (Completed)

Date: Thursday, March 18, 2021
Instructor: Pat Patterson
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

The Auditing Standards Board (ASB) of the AICPA in June of 2019, issued a Proposed Statement on Auditing Standards, Amendments to the Description of the Concept of Materiality and a Proposed Statement on Standards for Attestation Engagements, “Amendments to the Description of the Concept of Materiality”. These proposals have been issued in December 2019 as SAS 138 and SSAE 20 and amend the following SASs:
• Statement on Auditing Standards [SAS] No. 122, Statements on Auditing Standards: Clarification and Recodification,
• SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing
• SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA [AICPA, Professional Standards, AU-C sec. 703])
In addition to SAS 134 and 136, the following SASs were also issued.
• SAS No. 135, Omnibus Statement on Auditing Standards—2019, May 2019.
• SAS 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports;
• SAS 139, March, 2020, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes from SAS No. 134;
• SAS 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes from SAS Nos. 134 and 137, April 2020
• Finally, “Pre SAS 134” and SAS 141 were issued which had a major impact on the standards issued as SASs 134-140. This included SSAE 20.

Delaying the effective dates of Statements on Auditing Standards (SASs) No. 134–140 provides relief to audit firms amid the challenges created by the coronavirus pandemic.

Who Should Attend
Attendees should include those professionals in public practice, in business, in government, and in education who deal with financial statements.

Topics Covered

  • Differences of definitions of materiality in accounting
  • ASB's current definition of materiality
  • Definition of materiality used by the International Accounting Standards Board (IASB) and the IAASB
  • Amendments to Attestation Engagements and materiality
  • Amendments to align the materiality concepts discussed in AICPA Professional Standards with the definition of materiality used
  • SSAE 20
  • Pre SAS 134
  • SAS 141
  • SSARS 25

Learning Objectives

  • Recognize and apply an overview of new standards from the Auditing Standards Board (ASB) to amend the description of the concept of materiality
  • Recognize and apply an overview of Statement on Auditing Standards No. 138, Amendments to the Description of the Concept of Materiality
  • Recognize and apply an overview of Statement on Standards for Attestation Engagements No. 20
  • Identify and apply SSARS 25
  • Differentiate AR-C Sections amended by SSARS 25
  • Identify a basis of accounting that the entity uses to comply with an agreement between the entity and one or more third parties other than the accountant
  • Recognize which paragraph is now required to be included within an accountant's review report

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
General knowledge of Generally Accepted Auditing Standards, GAAS.

Advance Preparation
None

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