Do you agree with the changes to group audits?
AICPA Statement on Auditing Standards No. 149 | Resources | AICPA
The AICPA has issued SAS 149, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors), which supersedes extant AU-C 600. The new standard differentiates between a newly created term “referred-to auditors” (not part of the engagement team) and an updated term “component auditors” (part of the engagement team). It also moves towards a principles based approach for deciding the proper audit response. The SAS is effective for audits of group financial statements for periods ending on or after December 15, 2026.
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With over 15 years of experience in the accounting profession, Melisa Galasso designs and facilitates courses in advanced technical accounting and auditing topics, including not-for-profit and governmental accounting. She closely monitors regulatory bodies for changes in auditing and accounting guidance and serves as a subject matter expert in implementing the updated guidance.