AU 314: Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement1,2
AU-C-315: Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
AU EFFECTIVE DATE AND APPLICABILITY
Original Pronouncement | Statement on Auditing Standards (SAS) 109 |
Effective Date | This statement currently is effective. |
Applicability | Audits of financial statements in accordance with generally accepted auditing standards. |
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 315 does not change extant requirements in any significant respect.
The requirements of AU 314 are clarified in AU-C 315, except for the requirement:
- For the auditor to perform the audit with professional skepticism, which is included in AU-C 200
- To consider whether the entity has disclosed a particular matter appropriately, which is included in AU-C 700
AU DEFINITIONS OF TERMS
Internal control. A process affected by an entity’s board of directors, management, and other personnel that is designed to provide reasonable assurance about the achievement of the entity’s objectives in the following categories:
Components of internal control. The five interrelated components ...
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