This 2020 edition delivers the current Statements on Auditing Standards (SASs) and related interpretations in a codified format, giving up-to-date information needed to conduct successful audits and provide high-quality services to clients.

Issued directly by the AICPA, this authoritative guidance is essential to fully understand the requirements associated with an audit.

This edition includes the following new standards:

* SAS No. 136, Forming an Opinion and Reporting on Financial Statements of Employee

* Benefit Plans Subject to ERISA

* SAS No. 137, The Auditor's Responsibilities Relating to Other Information Included in

* Annual Reports

* SAS No. 138, Amendments to the Description of the Concept of Materiality

The American Institute of CPAs (AICPA) is the world's largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the procession.

How This Publication is Organized 1

Applicability of AICPA Professional Standards 3

U.S Auditing StandardsAICPA (Clarified) [AU-C]

AU-C Cross-References to SASs 9

AU-C Introduction 25

Foreword

PrefacePrinciples Underlying an Audit Conducted in Accordance With Generally Accepted Auditing Standards

Glossary of Terms

AU-C 200299 General Principles and Responsibilities 65

200Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards

200AOverall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards

210Terms of Engagement

220Quality Control for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards

230Audit Documentation

9230Audit Documentation: Auditing Interpretations of Section 230

240Consideration of Fraud in a Financial Statement Audit

250Consideration of Laws and Regulations in an Audit of Financial Statements

260The Auditor's Communication With Those Charged With Governance

265Communicating Internal Control Related Matters Identified in an Audit

9265Communicating Internal Control Related Matters Identified in an Audit: Auditing Interpretations of Section 265

AU-C 300499 Risk Assessment and Response to Assessed Risks 291

300Planning an Audit

315Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement

320Materiality in Planning and Performing an Audit

320AMateriality in Planning and Performing an Audit

330Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained

402Audit Considerations Relating to an Entity Using a Service Organization

450Evaluation of Misstatements Identified During the Audit

450AEvaluation of Misstatements Identified During the Audit

AU-C 500599 Audit Evidence 457

500Audit Evidence

9500Audit Evidence: Auditing Interpretations of Section 500

501Audit EvidenceSpecific Considerations for Selected Items

505External Confirmations

510Opening BalancesInitial Audit Engagements, Including Reaudit Engagements

520Analytical Procedures

530Audit Sampling

540Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures

550Related Parties

560Subsequent Events and Subsequently Discovered Facts

570The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern

580Written Representations

585Consideration of Omitted Procedures After the Report Release Date

AU-C 600699 Using the Work of Others 717

600Special ConsiderationsAudits of Group Financial Statements (Including the Work of Component Auditors)

600ASpecial ConsiderationsAudits of Group Financial Statements (Including the Work of Component Auditors)

9600Special ConsiderationsAudits of Group Financial Statements (Including theWork of Component Auditors): Auditing Interpretations of Section 600

610Using the Work of Internal Auditors

620Using the Work of an Auditor's Specialist

9620Using the Work of an Auditor's Specialist: Auditing Interpretations of Section 620

AU-C 700799 Audit Conclusions and Reporting 901

700Forming an Opinion and Reporting on Financial Statements

700AForming an Opinion and Reporting on Financial Statements

9700AForming an Opinion and Reporting on Financial Statements: Auditing Interpretations of Section 700

701Communicating Key Audit Matters in the Independent Auditor's Report

703Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA

705Modifications to the Opinion in the Independent Auditor's Report

705AModifications to the Opinion in the Independent Auditor's Report

706Emphasis-of-Matter Paragraphs and Other-Matte...