CPA Exam Candidate Bulletin

Last Updated: February 1, 2016

New CPA Exam Standard: SAS 130



The Auditing Standards Board (ASB) recently issued Statement on Auditing Standards (SAS) No. 130, An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements (to be codified as AU-C 940). This SAS is effective for integrated audits for periods ending on or after December 15, 2016. Based on the AICPA revised Pronouncement Policy, the new standard will be first tested on the CPA Exam in January 2017.

The new SAS will replace AT 501, An Examination of an Entity's Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, when it becomes effective. The ASB will consider developing, at a later date, an attestation standard addressing examinations of internal control independent of financial statement audits. The new standard will also replace Interpretation 1 of AT 501 "Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act."

SAS No. 130 adheres closely to AT 501 and PCAOB Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements. The auditor will be required to examine and report directly on the effectiveness of internal control over financial reporting. There is no longer an option to examine and report on management's assertion about the effectiveness of internal control over financial reporting.

Learn more about the AICPA's revised Pronouncement Policy, and discover more detailed information about the changes affecting candidates by visiting this CPA Exam resource.