Auditing Standards Board Issues SAS No. 117, Compliance Audits
Read a summary of Statement on Auditing Standards No. 117, Compliance Audits (PDF), which the Auditing Standards Board has issued to supersede SAS No. 74, Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance, in AU section 801 of AICPA Professional Standards to: a) reflect changes in the compliance audit environment and incorporate the risk assessment standards; b) require the auditor to adapt and apply the AU sections of AICPA Professional Standards to a compliance audit and provides guidance on how to do so; and c) identify the AU sections that are not applicable to a compliance audit, define terms related to compliance audits and used in the SAS, and identify the elements to be included in an auditor’s report on a compliance audit.
The provisions of this SAS are effective for compliance audits for fiscal periods ending on or after June 15, 2010. Earlier application is permitted. Please visit the AICPA Store to place an order (product no. 060712).