AICPA Releases Standard on External Confirmations

The Auditing Standards Board of the AICPA has released Statement on Auditing Standards (SAS) No. 150, External Confirmations. Among other changes, SAS 150 introduces a new requirement under which auditors would need to “perform external confirmation procedures for cash and cash equivalents held by third parties (cash) to respond to the assessed risks of material misstatement unless certain conditions exist.” The new SAS also contains amendments related to intermediaries to reflect their “widespread use . . . in external confirmations procedures.”

SAS 150 will become effective for financial statement audits for periods ending on or after December 15, 2028.