Annual Update for Accountants and Auditors: 2020

Chapter 7New Statements on Auditing Standards

Learning objectives

• Recognize key changes in the auditor’s report, including auditor reporting when engaged to communicate key audit matters (KAMs) and other amendments contained in recently issued Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements.
• Determine key requirements in SAS No. 135, Omnibus Statement on Auditing Standards (SAS)—2019, related to considering significant unusual transactions and related party transactions in an audit.
• Identify key auditor reporting requirements contained in SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA, issued by the Auditing Standards Board (ASB) in July 2019.
• Identify requirements related to other information in annual reports contained in SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports.
• Recognize changes in the definition of materiality contained in SAS No. 138, Amendments to the Description of the Concept of Materiality.
• Identify audit reporting changes to other engagement situations as outlined in SAS No. 139, Amendments to AU-C Sections 800, 805, and 810 to Incorporate Auditor Reporting Changes From SAS No. 134, and SAS No. 140, Amendments to AU-C Sections 725, 730, 930, 935, and 940 to Incorporate Auditor Reporting Changes From SAS Nos. 134 and 137.