The Auditing Standards Board of the American Institute of CPAs has approved eight new statements on auditing standards, collectively referred to as the risk assessment standards.

The new standards will be available around March 8 and can be purchased through the AICPA Store at www.cpa2biz.com/risk.

The new statements will be effective for audits of financial statements for periods beginning on or after Dec.15, 2006, though early adoption is permitted. A summary is available on the AICPA Web site, www.aicpa.org.

Collectively, the new standards provide guidance concerning the auditor's assessment of the risks related to:

  • Material misstatement (whether by fraud or error) in a financial statement audit;
  • The design and performance of audit procedures to address assessed risks;
  • Audit risk and materiality;
  • Planning and supervision; and,
  • Audit evidence.

"These standards, along with our standard on fraud, get to the very heart of the audit process," said vice president of professional standards and services Chuck Landes, in a statement.In the coming months, the AICPA will offer a number of resources and products to help members implement the new standards, including CPE programs, conference presentations and audit guides.

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