September 18th release notes

What's new

Enhanced practical guidance
. This edition of your
Practice Aids
provides enhanced practical guidance to aid in your risk assessment process performed following the requirements of SAS No. 145,
Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
. This edition builds upon the guidance provided last year to identify significant classes of transactions, account balances, or disclosures as well as understand the entity’s system of internal control under SAS No. 145, and incorporates additional guidance based on feedback from practitioners implementing SAS No. 145.
Recent Developments
. Your
Practice Aids
provide an overview of SAS No. 149,
Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors)
, which is effective for audits of group financial statements for periods ending on or after December 15, 2026. Based on the effective date, this edition of these Practice Aids does not fully incorporate the standard but includes a discussion of the main objectives of the new standard, including a comparison to the extant standard.
Focus on audit quality
. Improving audit quality continues to be of interest to standard setters and practitioners. Recent auditing standards, such as SAS No. 145 and SAS No. 143,
Auditing Accounting Estimates and Related Disclosures
, place particular focus on executing quality audit procedures through all phases of the audit to perform an audit that appropriately assesses and addresses the risks of material misstatement. Your
Practice Aids
equip you with the best available practical guidance and tools to execute audits to the expectations of all relevant stakeholders.
Updated Disclosure Checklist
. The most effective way to ensure that all of the required information is disclosed in the financial statements you audit is to use our comprehensive disclosure checklists. The separate disclosure checklists for nonprofit organizations, nonpublic companies, additional requirements for nongovernmental health care entities, and special-purpose governmental health care entities have been thoroughly updated to provide you the most current and comprehensive tools to help you ensure the financial statements you audit comply with authoritative pronouncements.

Updated Guidance on Audits of Not-for-Profit Entities
. Your
Practice Aids
are updated for relevant changes from the March 1, 2023, edition of the AICPA Audit and Accounting Guide,
Not-for-Profit Entities
.
FASB Accounting Standards Updates
. Since the last edition of these
Practice Aids
, the Financial Accounting Standards Board (FASB) has issued many new Accounting Standards Updates (ASUs). Your
Practice Aids
have been updated to address those ASUs, where applicable.    

Updated Guidance on Governmental GAAP
. Your
Practice Aids
provide the guidance and tools you need to properly apply and audit governmental GAAP, including the most recently issued and effective pronouncements. Your
Practice Aids
have also been updated for new interpretive guidance in the 2023 edition of the AICPA Audit and Accounting Guide,
State and Local Governments
.