AICPA Issues SAS 149 and SQMS 3

The AICPA’s Auditing Standards Board (ASB) has published Statement on Auditing Standards (SAS) No. 149, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors). SAS 149 “shifts the auditor’s approach in determining the components at which to perform audit work from identifying ‘significant components’ to using professional judgment based on assessed risk.”

In addition, the ASB has issued Statement on Quality Management Standards (SQMS) No. 3. Among other amendments, SQMS 3 conforms the language in certain quality management standards to that used in SAS 149.