2007 audit guides being updated for new Risk Assessment Standards.

• Position: Now available

The 2007 editions of the AICPA Audit and Accounting Guides include application guidance on the new Risk Assessment Standards (Statements on Auditing Standards Nos. 104-111), which create significant new requirements for auditors. The Risk Assessment Standards, issued in Mar. 2006, are effective for audits of financial statements for periods beginning on or after Dec. 15, 2006, with early application permitted.

Practitioners must understand how to apply the new Risk Assessment Standards, and the guides assist practitioners in doing so both accurately and efficiently. The guides explain how to apply the audit risk model to form an opinion on client financial statements and present key concepts of the standards, including:

* Planning considerations.

* Audit risk.

* Materiality and tolerable misstatement.

* Financial statement assertions.

* Risk assessment procedures.

* Understanding the entity and its environment, including its internal control.

* Assessing the risk of material misstatement.

* Designing and performing further audit procedures that effectively respond to the assessed risks.

* Evaluating misstatements.

Each industry-specific guide presents a valuable appendix that highlights key provisions of the standards and how they differ from former audit standards. The 2007 Audit and Accounting Guides provide invaluable information on the new Risk Assessment Standards and can...