APPENDIX A: ASB CLARITY PROJECT EXTANT AU SECTIONS MAPPED TO THE CLARIFIED AU-C SECTIONS

The following table maps the extant AU sections to the clarified AU-C sections. As a result of the ASB Clarity Project, all existing AU sections have been modified. In some cases, individual AU sections have been revised into individual clarified standards. In other cases, some AU sections have been grouped together and revised as one or more clarified standards. In addition, the ASB has revised the AU section number order established by SAS No. 1 to follow the ISA number order for all clarified AU sections for which there are comparable ISAs.

The following table also includes the type of change in the requirements from the ASB Clarity Project. The Project was not intended to create additional requirements; however, some revisions have resulted in substantive changes that require auditors to make adjustments in their practices as a result of the project. To assist auditors in the transition process, the AU-C sections have been organized into four types of changes, including the following:

• Substantive Changes
• Primarily Clarifying Changes
• Primarily Formatting Changes
• Standards Not Yet Issued in the Clarity Project

Substantive Changes

Substantive changes are considered likely to affect the firms’ audit methodology and engagements because they contain substantive or other changes, defined as having one or both of the following characteristics:

• Change(s) to an audit methodology that may require effort to implement
• A number of small changes that, while not individually significant, may affect audit engagements

The auditor may need to address the changes in these AU-C sections early in the audit process. Some of the requirements may affect decisions to accept an engagement. Some will need to be communicated early in the planning process. The clarified standards are effective for periods ending on or after December 15, 2012, and may require the auditor to apply certain of the substantive changes as early as the planning stage for 2012 year-end audits. The auditor needs to review these AU-C sections to identify areas that apply to their practices.

Primarily Clarifying Changes

Primarily clarifying changes are intended to explicitly state what may have been implicit in the extant standards, which over time resulted in diversity in practice. Certain of these clarified standards address management responsibilities that may need to be communicated to clients early in the planning stage. Some of these requirements may already be performed in practice, although not explicitly required by the extant standards. Most notably, certain of the new requirements shift the timing of certain requirements from the reporting stage of an audit to the planning stage. The new requirements in this section may not have a substantial impact, but may result in adjustments to the timing and responsibilities of the auditor and their clients, and will need to be reviewed by the auditor to ensure that all requirements have been properly addressed.

Primarily Formatting Changes

Primarily formatting changes from the extant standards do not contain changes that expand the extant sections in any significant way and may not require adjustments to current practice.

Standard Not Yet Issued in the Clarity Project

Standard not yet issued in the Clarity Project is the final remaining section that is in exposure or has not yet been reworked.

Extant AU Sections Mapped to the Clarified AU-C Sections