ASB Proposed Strategic Plan Includes Possible Advisory Board, Fast Movement on Estimates, Amendments, and Evidence

By:
Chris Gaetano
Published Date:
Nov 22, 2019
The Auditing Standards Board is seeking feedback on a proposed three-year plan that includes as one of its elements a possible advisory board to provide input on its agenda and current projects, as well as completing by May 2020 projects on conforming amendments, audit evidence, examination and review, and estimates. 

The strategic plan, broadly, outlines five initiatives: developing high-quality standards in the public interest, enhancing communication with stakeholders, thinking and operating more strategically, keeping standards relevant in a changing environment, and supporting effective implementation of standards. 

Within these initiatives, one specific action is: "Consider the formation of an advisory body to provide input on the ASB agenda and current projects. Such body could promote the public interest by providing more direct and timely input from stakeholders, such as users, preparers, lenders, investors, and regulators." The remainder of points tend toward activities such as "explore ways to work better and faster and effectively manage our priorities," "explore new and creative means of communicating with out stakeholders, including more direct involvement in outreach by current ASB members," and "continue to identify and monitor emerging technologies and how they are used by preparers and practitioners through liaison with [various AICPA committees and groups] as well as through feedback from stakeholders." 

The strategic plan also included a proposed work plan for 2020-2021, indicating its priorities for various projects in the next few years. The ASB said it would like to finish revisions on SAS No. 134-Conforming Amendments, Audit Evidence (AU-C Section 500), Estimates (AU-C Section 540), and AT-C section 205, Examinations, and 210, Reviews, by May 2020. 

Other projects have a wider time frame. The ASB expects to have an exposure draft on identifying and assessing risks of material misstatement by July 2020 and a completed standard by may 2021. Exposure drafts on management specialists and quality management are expected to come out by October 2020. Finally, drafts on noncompliance with laws and regulations (NOCLAR) and group audits are expected to come out in October and January 2020 respectively. 

Comments are requested by Jan. 31, 2020. Comments should be sent to Sherry Hazel at CommentLetters@aicpa-cima.com.

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