AICPA Issues Practice Aid on Audit Considerations Related to Credit Losses

The AICPA has issued a practice aid, Allowance for Credit Losses — Audit Considerations.

The practice aid addresses “key considerations in auditing the allowance for credit losses (ACL) related to loans under [ASC] 326-20 and disclosure considerations.” Specific topics covered include “obtaining an understanding of the entity, assessing the risks, identifying the controls relevant to the audit, designing an audit response, performing audit procedures, and evaluating the audit results.”