In October 2021, the AICPA’s Auditing Standards Board issued Statement on Auditing Standards (SAS) No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Misstatement, to supersede existing SAS No. 122, as amended, AU-C section 315 of the same title, and amends various other AU-C sections. SAS No. 145 was intended to enable auditors to address the following:
Understanding the entity’s system of internal control, in particular, relating to the auditor’s work effort to obtain the