SAS 142 – 143: New Standards on Audit Evidence and Estimates
The objective of this course is to address the new auditing standards issued by the Auditing Standards Board as SAS No. 142-143.
The first segment of the course addresses SAS No. 142’s expanded guidance on what comprises audit evidence in a financial statement audit. Topics include evaluating audit evidence, testing audit evidence; relevance and reliability of audit evidence, including its source; susceptibility to management bias; corroborative or contradictory information; evaluating whether information is sufficiently precise and details for the auditor’s purposes; and use of automated tools and techniques.
The second segment is a review of SAS No. 143’s guidance on accounting estimates including the degree of estimation uncertainty; risk assessment procedures related to accounting estimates; identifying and assessing the risks of material misstatement including responses to the assessment; indicators of possible management bias, and more.
This course is included in our Accounting and Auditing CPE Bundle.
Course Information
Course No. F180
Format: Online pdf (68 pages). Printed book available.
Prerequisites: General understanding of compilation and review and auditing standards
Advance Preparation:None
Level: Overview
CPE Credit: 2 hrs.
Field of Study: Auditing
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: April 2021
Objectives
After reading the course material, you will be able to:
- Identify an example of an attribute of information obtained as audit evidence
- Recognize actions an auditor should perform in evaluating information used as audit evidence
- Recognize attributes of information to be used as audit evidence
- Identify an attribute that affects the reliability of information used as audit evidence
- Recall functions on which an auditor can use automated tools and techniques
- Identify an example of an accounting estimate related to classes of transactions, account balances and disclosures identified in SAS No. 143
- Recognize how inherent and control risk should be assessed in accordance with SAS No. 143
- Recognize an example of an inherent risk factor
- Identify examples of the approaches that can be performed in assessing the risks of material misstatement from accounting estimates
