AU 312: Audit Risk and Materiality in Conducting an Audit1

AU-C 320: Materiality in Planning and Performing an Audit

AU-C 450: Evaluation of Misstatements Identified During the Audit

AU EFFECTIVE DATE AND APPLICABILITY

Original Pronouncement Statement on Accounting Standards (SAS) 107.
Effective Date The standard is currently effective.
Applicability Audits of financial statements in accordance with generally accepted auditing standards (GAAS). (Specific requirements apply to planning audit tests and evaluating the results of audit tests.)

AU-C EFFECTIVE DATE AND SUMMARY OF CHANGES

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.

AU-C 320 does not change extant requirements in any significant respect. To bring the requirements more into conformity with International Standards on Auditing (ISA) 320, Materiality in Planning and Performing an Audit, and ISA 450, Evaluation of Misstatements Identified During the Audit, the extant standard AU-312 was divided into two standards, codified as AU-C 320 and AU-C 450. Other changes are:

  • The inclusion of the definition of audit risk and its components in AU-C 200 and
  • The inclusion of the auditor’s responsibilities to evaluate the overall effect of audit findings on the auditor’s report.

AU DEFINITIONS OF TERMS

Audit risk. The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial ...

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