AICPA Issues Proposed SAS on Material Misstatement in Financial Statements
AICPA Issues Proposed SAS on Material Misstatement in Financial
September 4, 2020
The AICPA has issued a proposed Statement on Auditing Standards (SAS),
Understanding the Entity and Its Environment and Assessing the Risks of
Material Misstatement, which would supersede SAS No. 122, as amended, as
well as Section 315 of the same title, and would amend various AU-C sections in
AICPA Professional Standards.
The proposed SAS is intended to “enhance the requirements and guidance on identifying
and assessing the risks of material misstatement” and would revise the definition of
Comments on the proposed SAS are due by November 25, 2020. For more information, see
the press release on the AICPA’s Web site.