New SAS 134, Auditor Opinions on Financial Statements: Additional Disclosure and Reporting Requirements

In March 2019 the AICPA Auditing Standards Board (ASB) issued standards "designed to enhance the communicative value of the auditor's report and align generally accepted auditing standards (GAAS) with the standards issued by the International Auditing and Assurance Standards Board (IAASB) and the PCAOB." The new SAS 134 imposes several new requirements on auditors to render an opinion on a financial statement audit.

The new standard makes changes to the format of the auditor's opinion report. Under SAS No. 134, an auditor must follow the "Opinion" section of the report with a "Basis for Opinion" for all audits, not just those in which the auditor modifies an opinion. Additionally, the standard includes new requirements for going concerns as part of the audit report. Also, auditors under the new standard must disclose when the financial statement does not contain adequate disclosure about an entity's ability to continue as a going concern for a reasonable period and prescribe specific language in these circumstances.

Listen as our distinguished panel provides a realistic first look at the new opinion and disclosure requirements of SAS 134 and offers useful guidance on preparing for the implementation of the new guidance.

1. Outline of SAS 134
2. Essential matters to communicate to the audit committee
3. Accounts or disclosures material to financial statements
4. New Basis of Opinion section
5. Auditor concerns of ability of the entity to continue as an ongoing concern
6. Suggested reporting formats
7. Implementation timetable

The panel will discuss these and other essential questions:

• How does the new standard change the auditor's obligations to render an opinion as to the financial statements?
• Basis of opinion requirements for all opinions and not just modifications
• Duties to evaluate the entity's ability to continue as an ongoing concern
• Reporting duties in circumstances where the financial statements do not contain adequate disclosures
• Format changes and additional reporting obligations in the new standard

Learning Objectives

After completing this course, you will be able to:

• Recognize the new requirements for stating a basis for auditor's opinion in every audit report
• Describe the language mandated for circumstances where an auditor's conclusion casts doubt on the ability of the entity to continue as an ongoing concern
• Identify the new standard's provisions on material disclosures

• Field of Study: Auditing
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Minimum three years' experience in audit engagements and supervising other auditors' work. Specific knowledge of PCAOB examinations, assessing risks of material misstatement, auditor independence, SEC reporting, and auditor duties; familiarity with newly updated AS 3101

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.