SAS No. 142 addresses the evolving nature of business, audit services and issues that have arisen since the existing AU-C section 500 was originally issued. The standard addresses:
- emerging technologies used by both preparers and auditors;
- the application of professional skepticism;
- the expanding sources of information to be used as audit evidence; and
- the accuracy, completeness, relevance and reliability of audit evidence.
The new audit evidence standard also enhances’ the auditor’s assessment of whether sufficient and appropriate audit evidence has been obtained and establishes a multi-faceted consideration of attributes and factors in evaluating such audit evidence.
SAS No. 142 becomes effective for audits of financial statements for periods ending on or after December 15, 2022.
For further details, refer to the press release and SAS 142 on the AICPA’s website.