Table of Contents

Chapter I - ASB’s Clarity Project - Section 1 8

I. ASB’s Clarity Project 8

Objectives: 8

Introduction: 8

Mapping of Old SASs to New Standards 14

II. New SASs With Substantive Changes 24

AU-C Section 250: Consideration of Laws and Regulations in an Audit of Financial Statements 25

Chapter II - Section 2 Review Questions 36

Chapter II - New SASs with Substantive Changes - Section 3 37

AU-C Section 265: Communicating Internal Control Related Matters Identified in an Audit 37

Chapter II - Section 3 Review Questions 52

Chapter II - New SASs with Substantive Changes - Section 4 53

AU-C Section 700: Forming an Opinion and Reporting on Financial Statements 53

AU-C Section 705: Modifications to the Opinion in the Independent Auditor’s Report 65

Chapter II - Section 4 Review Questions 77

Chapter II - New SASs with Substantive Changes - Section 5 78

AU-C Section 706: Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor’s Report 78

Chapter II - Section 5 Review Questions 89

Chapter II - New SASs with Substantive Changes - Section 6 90

AU-C Section 600: Special Considerations- Audits of Group Financial Statements (Including the Work of Component Auditors) 90

AU-C Section 800: Special Considerations- Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks 110

Chapter II - Section 6 Review Questions 132

Chapter III - Other Selected New SASs- Clarifying Changes Only - Section 7 135

III. Other Selected New SASs- Clarifying Changes Only 135

AU-C Section 200: Overall Objectives of the Independent Auditor and the Conduct of An Audit in Accordance with Generally Accepted Auditing Standards 136

AU-C Section 210: Terms of Engagement 140

AU-C Section 220: Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards 148

AU-C Section 510: Opening Balances-Initial Audit Engagements, Including Reaudit Engagements 150

AU-C Section 580: Written Representations 157

AU-C Section 805: Special Considerations- Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement 160

AU-C Section 505: External Confirmations 167

Chapter III - Section 7 Review Questions 172

Chapter IV - Other Selected New SASs- Formatting Changes Only - Section 8 174

IV. Other Selected New SASs- Formatting Changes Only 174

AU-C Section 550: Related Parties 174

AU-C Section 620: Using the Work of an Auditor’s Specialist 175

AU-C Section 905: Alert as to the Intended Use of the Auditor’s Written Communication 176

AU-C Section 708: Consistency of Financial Statements 178

AU-C Section 910: Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country 178

AU-C Section 240: Consideration of Fraud in a Financial Statement Audit 179

AU-C Section 402: Audit Considerations Relating to an Entity Using a Service Organization 179

AU-C Section 501: Audit Evidence- Specific Considerations for Selected Items 180

V. SAS Nos. 128- 131 187

SAS No. 128: AU-C Section 610: Using the Work of Internal Auditors 187

SAS No. 129: Amendment to Statement on Auditing Standards No. 122 Section 920, Letters for Underwriters and Certain Other Requesting Parties, as Amended 189

SAS No. 130: An Audit of Internal Control Over Financial Reporting That Integrates with an Audit of Financial Statements 191

SAS No. 131: Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements 203

Chapter IV - Section 8 Review Questions 208