Table of Contents

Chapter I - ASB’s Clarity Project - Section 1 9

I. ASB’s Clarity Project 9

Objectives 9

Introduction 9

Mapping of Old SASs to Replacement Standards 16

II. Replacement SASs with Substantive Changes 26

AU-C Section 250: Consideration of Laws and Regulations in an Audit of Financial Statements 27

Chapter II - Replacement SASs with Substantive Changes - Section 3 38

AU-C Section 265: Communicating Internal Control Related Matters Identified in an Audit 38

Chapter II - Section 3 Review Questions 53

Chapter II - Replacement SASs with Substantive Changes - Section 4 54

AU-C Section 705: Modifications to the Opinion in the Independent Auditor’s Report 66

Chapter II - Section 4 Review Questions 78

Chapter II - Replacement SASs with Substantive Changes - Section 5 79

Chapter II - Section 5 Review Questions 91

Chapter II - Replacement SASs with Substantive Changes - Section 6 92

AU-C Section 800: Special Considerations- Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks 112

Chapter II - Section 6 Review Questions 134

Chapter III - Other Selected New SASs- Clarifying Changes Only - Section 7 137

AU-C Section 200: Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Generally Accepted Auditing Standards 137

AU-C Section 210: Terms of Engagement 141

AU-C Section 220: Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards 150

AU-C Section 510: Opening Balances-Initial Audit Engagements, Including Reaudit Engagements 152

AU-C Section 580: Written Representations 159

AU-C Section 805: Special Considerations- Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement 162

AU-C Section 505: External Confirmations 169

Chapter III - Section 7 Review Questions 174

Chapter IV - SAS Nos. 128-133 - Section 8 176

IV. SAS Nos. 128-133 176

SAS No. 128: AU-C Section 610: Using the Work of Internal Auditors 176

SAS No. 129: Amendment to Statement on Auditing Standards No. 122 Section 920, Letters for Underwriters and Certain Other Requesting Parties, as Amended 178

SAS No. 130: An Audit of Internal Control Over Financial Reporting That Integrates with an Audit of Financial Statements 179

SAS No. 131: Amendment to Statement on Auditing Standards No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements 191

SAS No. 132: The Auditor's Consideration of an Entity’s Ability to Continue as a Going Concern 195

SAS No. 133: Auditor Involvement with Exempt Offering Documents 210

Chapter IV - Section 8 Review Questions 217