SAS 146: Quality Management for an Engagement Conducted in Accordance with GAAS (Completed)

SAS 146, Quality Management for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards would supersede SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, as amended, section 220, Quality Control for an Engagement Conducted in Accordance with Generally Accepted Auditing Standards (AU-C section 220) . This SAS deals with the specific responsibilities of the auditor regarding quality management at the engagement level for an audit of financial statements, and the related responsibilities of the engagement partner.
In this session, the changes are explained and intended to:
• Keep the standard fit for purposes in a wide range of circumstances and a complex environment.
• Encourage initiative-taking management of quality at the engagement level.
• Emphasize the importance of the exercise of professional skepticism and enhance the documentation of the auditor’s judgments.

Who Should Attend
Professionals who need to know the provisions and parameters of the new SAS 146 regarding an engagement conducted in accordance with GAAS.

Topics Covered

• The SAS clarifies and strengthens the key elements of quality management at the engagement level.
• Focus on the critically significant role of the engagement partner in managing and achieving quality on the audit engagement and reinforcing the importance of quality to all members of the engagement team.
• Responsibility of Engagement Partner
• Responsibility for managing and achieving quality at the engagement level.
• Responsibility for determining the nature, timing, and extent of direction, supervision, and review considering engagement circumstances.
• Requirement to be satisfied that involvement has been sufficient and appropriate to provide a basis for taking overall responsibility
• The new SAS also integrates the new quality management concepts in the proposed Statement on Quality Management Standards A Firm's System of Quality Management , so that such concepts can be carried through at the engagement level.
• Professional skepticism
• Relevant ethical requirements
• Scalability

Learning Objectives

• Describe the relevant ethical requirements and whether other members of the engagement team are aware of those requirements and the firm's related policies or procedures
• Recognize threats to compliance with relevant ethical requirements
• Recognize how to determine whether relevant ethical requirements, including those related to independence, have been fulfilled
• Recognize new material on the importance of professional skepticism and professional judgment in performing audit engagements,
• Identify application material that describes impediments to professional skepticism, auditor biases and actions the engagement team can take

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
General understanding of auditing standards.

Advance Preparation
None