Audit Evidence Standard SAS 142: Good or Bad

Author: Pat Patterson

In July 2020, the AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 142, Audit Evidence. SAS No. 142 supersedes AU-C section 500, Audit Evidence and amends various other sections of SAS 122, Statements on Auditing Standards: Clarification and Recodification, as amended. SAS No. 142 explains what constitutes audit evidence in an audit of financial statements and sets out attributes of information that are considered by the auditor when evaluating information to be used as audit evidence. Taking these attributes into account assists the auditor in maintaining professional skepticism.

This course discusses the revisions to SAS No. 142 and addresses the evolving nature of transacting business as well as the evolution of audit services. Issues addressed include use of emerging technologies and techniques by both preparers and auditors, the application of professional skepticism, the expanding use of external information sources to provide audit evidence, and more broadly, the relevance and reliability of audit evidence.

Publication Date: October 2022

Designed For
Professionals in public accounting, corporate and Not-for-Profit management, consulting, and education who need the changes in auditing standards as updated.

Topics Covered

• Update on Statement on Auditing Standards, SAS 142, Audit Evidence
• Update on Selected AICPA's Auditing Standards (SASs)
• Update on related issues such as COVID-19

Learning Objectives

• Recognize how to address the evolving nature of transacting business
• Identify the evolution of audit services
• Recognize how to address issues including the use of emerging technologies and techniques by both preparers and auditors
• Recognize how to address issues with the application of professional skepticism
• Identify how to explain the expanding use of external information sources to provide audit evidence and the relevance and reliability of audit evidence
• Identify the organization that released SAS No. 142 in July of 2020
• Identify the type of standard SAS No. 142 represents
• Identify the procedure that consists of evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data
• Identify the AU-C section that includes a specific documentation requirement if the auditor identifies information that is inconsistent with the auditor's final conclusion regarding a significant finding or issue
• Identify the SAS that relates to understanding the entity and its environment and assessing the risks of material misstatement

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
Basic understanding of the auditing standards and their applications.

Advance Preparation
None