|Original Pronouncements||Statements on Auditing Standards (SASs) 59, 64, 77, and 96.|
|Effective Date||These statements are now effective.|
|Applicability||Audits of financial statements in accordance with generally accepted auditing standards (GAAS).|
NOTE: The Statement applies in the audit of any type of entity. It is applicable to both profit-making and not-for-profit organizations. Thus, it would apply, for example, in the audit of a municipality. Also, the Statement applies to both GAAP (generally accepted accounting principles)–basis financial statements and OCBOA (Other Comprehensive Bases of Accounting)–basis financial statements, (e.g., cash or modified cash basis, tax basis, or regulatory basis). However, it does not apply to liquidation-basis financial statements.
SAS No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, is effective for audits of financial statements for periods ending on or after December 15, 2012.
SAS No. 126 does not change or expand SAS No. 59, as amended, in any significant respect. The Auditing Standards Board (ASB) has moved forward with the clarity redraft of SAS No. 59, as amended, so that it is consistent with the format of the other clarified SASs that were ...