Statement of Auditing

Standards
Suraj
Shruthi
Summiya
 WHAT DO YOU MEAN BY SAS ?
Statement on Auditing Standards (SAS) refers to a set of
professional standards and guidelines issued by the
American Institute of Certified Public Accountants
(AICPA)
 THE APPLICATION OF SAS
Planning the Audit:
• Auditors begin by understanding the entity's business, its
internal control environment, and assessing the risks of material
misstatement.Risk Assessment:

• SAS provides guidelines for auditors to assess the risks of

material
misstatement, both at the financial statement level and at the
assertion level

.Internal Control Evaluation:

• SAS requires auditors to evaluate and test the effectiveness of
internal controls relevant to the audit.
• They assess whether the controls are designed effectively and
determine the extent of reliance they can place on those
controls in planning the substantive procedures.
Audit Evidence Gathering:
• SAS provides guidance on obtaining sufficient and appropriate audit
evidence to support the auditor's opinion. Team Member Team Member
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The evidence is evaluated against audit assertions, such as
completeness, existence, valuation, and accuracy
Audit Documentation:
• Auditors maintain comprehensive audit documentation, as required by SAS.
This documentation includes the planning, procedures performed,
evidence obtained, and conclusions
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 THE OBJECTIVES OF SAS
1. Enhance Audit Quality: The primary objective of SAS is to promote and enhance the
quality of auditing engagements. By providing clear and comprehensive standards,
SAS helps auditors perform their work with due professional care, maintain
independence, and exercise professional skepticism.

2. Uniformity and Consistency: SAS aims to establish uniform and consistent auditing
standards and practices. It provides a common framework for auditors to follow,
ensuring that audit engagements are conducted in a systematic and consistent
manner. This helps maintain consistency in audit quality across different auditors and
audit firms, making it easier for users of financial statements to compare and evaluate
different entities.
3. COMPLIANCE WITH LEGAL AND REGULATORY
REQUIREMENTS: SAS HELPS AUDITORS COMPLY WITH RELEVANT LEGAL AND
REGULATORY REQUIREMENTS. IT INCORPORATES THE APPLICABLE AUDITING
STANDARDS AND GUIDELINES ISSUED BY REGULATORY BODIES, SUCH AS THE
SECURITIES AND EXCHANGE COMMISSION (SEC) AND THE PUBLIC COMPANY
ACCOUNTING OVERSIGHT BOARD (PCAOB). BY ADHERING TO SAS, AUDITORS CAN
MEET THEIR PROFESSIONAL OBLIGATIONS AND RESPONSIBILITIES UNDER THE LAW.

4. ADDRESS EMERGING ISSUES AND CHANGES:

THE AUDITING PROFESSION IS DYNAMIC, WITH NEW CHALLENGES AND EMERGING
ISSUES CONSTANTLY ARISING. SAS AIMS TO ADDRESS THESE CHANGING
CIRCUMSTANCES BY PROVIDING GUIDANCE ON HOW AUDITORS SHOULD RESPOND
TO NEW RISKS, REGULATORY DEVELOPMENTS, AND TECHNOLOGICAL
ADVANCEMENTS.

IN CONCLUSION, THE STATEMENT ON AUDITING STANDARDS (SAS) IS A VITAL SET OF

PROFESSIONAL STANDARDS AND GUIDELINES ISSUED BY THE AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS (AICPA). SAS PROVIDES A STRUCTURED FRAMEWORK
FOR AUDITORS TO CONDUCT HIGH-QUALITY AUDITS AND ENHANCE THE RELIABILITY
AND CREDIBILITY OF FINANCIAL REPORTING
THANKYOU