Governmental Accounting and Auditing Update

Chapter 2AICPA Activities

Learning objectives

• Identify the requirements of recently issued Statements on Auditing Standards (SASs).
• Identify common audit deficiencies found by the AICPA.

The AICPA’s Center for Plain English (CPEA) is available to AICPA members that are also members of the Firm Practice Management section (PCPS). The AICPA intends the CPEA to act as a “national office” for small- and medium-sized CPA firms providing accounting and auditing services.

Recently issued auditing and attestation standards

Overview

The Auditing Standards Board (ASB) has recently issued the following SASs and Statements on Standards for Attestation Engagements (SSAEs):

• SAS No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements
• SAS No. 135, Omnibus Statement of Auditiing Standards — 2019
• SAS No. 136, Forming an Opinion and Reporting on Financial Statements of
• Employee Benefit Plans Subject to ERISA (due to nature of topic this will not be addressed in this course)
• SAS No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports
• SAS No. 138, Amendments to the Description of the Concept of Materiality
• SSAE No. 19, Agreed-Upon Procedures Engagements
• SSAE No. 20, Amendments to the Description of the Concept of Materiality

Statements on Auditing Standards

SAS No. 134

Background

SAS No. 134 contains the following four sections:

• AU-C section¹ 700, Forming an Opinion and Reporting ...