Statement of Auditing Standards (SAS)

A series of statements issued by the Auditing Practices Board (APB) detailing basic principles and essential procedures in auditing, applicable to audits of financial statements for periods commencing before 15 December 2004.
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Definition

The Statement of Auditing Standards (SAS) refers to a series of statements issued by the Auditing Practices Board (APB), which delineated fundamental principles and essential procedures in auditing. These standards were mandatory for auditors in conducting audits of financial statements starting from their respective issuance until periods commencing before 15 December 2004. From that date onwards, auditors in the UK and Ireland are required to apply the International Standards on Auditing (ISAs).

Examples

  1. SAS No. 1 provided guidelines and requirements for the report of an independent auditor and established the standard reporting format.
  2. SAS No. 99 dealt with consideration of fraud in a financial statement audit, providing guidance on how auditors should identify and respond to fraudulent activity.

Frequently Asked Questions

Q1: What does SAS stand for in auditing? A1: SAS stands for Statement of Auditing Standards.

Q2: Who issued the SAS? A2: SAS were issued by the Auditing Practices Board (APB).

Q3: Are SAS still in use? A3: SAS were applied to audits of financial statements for periods commencing before 15 December 2004. For periods thereafter, International Standards on Auditing (ISAs) are applied in the UK and Ireland.

Q4: Why were SAS replaced by ISAs? A4: SAS were replaced by ISAs to harmonize auditing standards internationally, ensuring consistency and enhancing the quality of audits across borders.

Q5: How are SAS different from ISAs? A5: While both SAS and ISAs provide guiding principles and procedures for auditors, ISAs are international standards that aim to standardize auditing practices globally. SAS were specific to the UK and Ireland before the adoption of ISAs.

  • Auditing Practices Board (APB): The body responsible for issuing SAS and setting standards for auditing practices in the UK and Ireland prior to the shift to ISAs.
  • International Standards on Auditing (ISAs): A set of standards designed to improve the quality and uniformity of practices by auditors globally, adopted in the UK and Ireland from 15 December 2004.
  • Financial Statements: Formal records of the financial activities and position of a business, person, or other entity.

Online Resources

Suggested Books for Further Studies

  • “Auditing: A Risk-Based Approach to Conducting a Quality Audit” by Karla M. Johnstone, Audrey A. Gramling, Larry E. Rittenberg
  • “Principles of Auditing & Other Assurance Services” by Ray Whittington, Kurt Pany
  • “Auditing and Assurance Services: An Integrated Approach” by Alvin A. Arens, Randal J. Elder, Mark S. Beasley
  • “Audit and Assurance Essentials for Professional Accountancy Exams” by Katharine Bagshaw

Accounting Basics: “Statement of Auditing Standards (SAS)” Fundamentals Quiz

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