Changes in risk assessment requirements and procedures per AICPA Statement on Auditing Standards (SAS) No. 145 took effect with 2023 year-end audits. An important note on SAS No. 145: it’s scalable. SAS No. 145 risk assessment includes an enhanced discussion and guidance for audits of less complex entities.
Maria Manasses, CPA, Partner, Deputy Chief Auditor, Grant Thornton, LLP, notes in the brief video: “SAS No. 145 does not change the fundamental concepts underpinning audit risk and risk assessment.While it does have some new and change requirements, it enhances and clarifies certain aspects related to identifying and assessing the risk of material misstatement to really drive better risk assessments and enhance audit quality.”
Liz Gantnier, CPA, CGMA, Partner, FORVIS, LLP, affirms the scalability of SAS No.145, and she highlights resources that provide examples pertaining to less complex entities:
Audit Guide Risk Assessment in a Financial Statement Audit
AICPA Audit Risk Assessment Resource Applying and Documenting Procedures as Required by AU-C Section 315
To enhance your understanding of SAS No. 145, including how to apply procedures for smaller businesses and other non-issuers, watch the video and explore the Audit Risk Assessment resources page.