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

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 course, 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.

Publication Date: November 2022

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

Topics Covered

• Introduction to SAS 146
• Objectives of Quality Review
• Possible New Definitions for Quality Review
• The Requirements for Quality Review
• Applications and Other Explanatory Material
• Overall Responsibility for Quality Review

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
• Identify the SAS that was superseded by SAS No. 146
• Identify the AU-C Section that may be useful when involving component auditors to attend a physical inventory count and identify the AU-C Section that relates to using the work of internal auditors
• Identify the SQMS that requires the firm to establish quality objectives that address the firm's governance and leadership, which support the design, implementation, and operation of the system of quality management
• Identify the type of bias that relates to the tendency to place more weight on information that corroborates an existing belief than information that contradicts or casts doubt on that belief

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
General understanding of auditing standards.

Advance Preparation
None