The Auditing Standards (SAS) 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, aims to establish a more transparent audit process.
The SAS 134 was issued by the American Institute of Certified Public Accountants (AICPA) as a replacement for Section AU-C 700, forming an Opinion and Reporting on Financial Statements, among others relating to auditor reporting standards.
The new audit standard made fundamental updates to different aspects of financial statement audit reports, such as content layouts, additional information provided by the auditor, etc.
For instance, the SAS 134 standard requires auditors’ opinions to come at the beginning of the audit reports instead of later in the report. The auditor must also include an expanded description of statements regarding management and the auditors’ responsibility.
Generally, the SAS 134 will create consistent reporting for not-for-profit audits per the revised model of the Public Company Accounting Oversight Board (PCAOB).
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Contact MetwallyCPA for professional guidance to implement the SAS 134 for your not-for-profit organization.
