Just when you thought you knew exactly what your auditors needed, the American Institute of Certified Public Accountants decided to change the documentation requirements. The AICPA issued 8 new auditing standards that are designed to:
> improve the quality and effectiveness of an audit. In short, the standards force auditors to develop a more in-depth understanding of the client and its environment (including internal controls)
> provide for a more rigorous assessment of the risk of material misstatement of the financial statements and finally
> improve the link between the assessed risks of misstatement with the nature, timing and extent of the audit procedures performed.
So...what in the world does all this mean? See our next post as we begin discussing the new standards.
