AICPA Issues New Audit Standard on Use of Specialists and Pricing Information

The American Institute of CPAs (AICPA) Auditing Standards Board (ASB) has issued Statement on Auditing Standards (SAS) No. 144, Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources. SAS No. 144 amends SAS No. 122, sections 501 and 620, and SAS No. 143, Auditing Accounting Estimates and Related Disclosures (AU-C section 540 in AICPA Professional Standards). It addresses certain comments that were received on the exposure draft that resulted in the issuance of SAS No. 143.

“We heard feedback that more guidance on auditing the fair value of financial instruments would be helpful. This new standard provides that and has a particular focus on the use of pricing services,” said AICPA Chief Auditor Jennifer Burns, CPA. “We’ve also taken the opportunity to modernize our standards on management’s and auditors’ use of specialists, which is becoming more common due to the growing complexity of today’s financial reporting.”

The SAS provides guidance in AU-C section 501 on applying SAS No. 143 when: