ASB Update as of March 31, 2004

Since my last update in The Auditor's Report, the ASB has been reconstituted. The new ASB consists of 19 members (compared to the old ASB membership of 15), representing small and large practice units, state boards of accountancy, and non-firm members, including academia, governmental entities, and users of nonpublic entity financial statements.

The new ASB has the following objectives:

• Act as the profession's voice on auditing standards as they relate to audits of non-public entities, and act as the profession's voice when commenting on the proposed standards of other auditing standard setters, including the GAO, IAASB, and PCAOB.
• Serve as the profession's “think tank” on the strategic direction of auditing standards.
• Assist in rebuilding the public's trust in audit reports.
• Commission research that will continuously improve the auditing profession.
• Address the needs of users of non-public entity financial statements in a timely manner.
• Promulgate auditing, attestation, and quality control standards related to engagements for non-public entities.
• Issue clear authoritative guidance for auditors of non-public entities.
• Work with AICPA staff to develop nonauthoritative guidance for practitioners serving public, nonpublic, government, nonprofit, and for-profit entities.

Since its reformulation, the ASB has met once, primarily to discuss operating issues. Thus, there is little to report. The Auditing Section membership should be aware of three task forces covering the following topics:

• the risk assessment exposure drafts,
• using the work of a specialist, and
• confirmations.

In addition, the ASB's International Auditing Standards Subcommittee has been active in responding to the IAASB's exposure drafts and providing advice to US representatives. Bill Kinney and I serve on this subcommittee.

I suggest that you periodically check the AICPA's web site for ASB actions.

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