AICPA Issues Standard on Use of Internal Auditors

The American Institute of CPAs’ Auditing Standards Board has released a standard on using the work of internal auditors.

Statement on Auditing Standards No. 128 addresses the external auditor’s responsibilities if using the work of internal auditors, including the use of the work of the internal audit function in obtaining audit evidence and using internal auditors to provide direct assistance under the direction, supervision and review of the external auditor.

Part of the AICPA's Clarity Project for clarifying the ASB's auditing and assurance standards, the new standard supersedes SAS No. 65, “The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements,” and amends SAS No. 122, “Statements on Auditing Standards: Clarification and Recodification,” and Statement on Quality Control Standards No. 8, “A Firm’s System of Quality Control.”

Separately, the ASB has also proposed amendments to its clarified auditing standards on letters to underwriters and certain other requesting parties. The proposed amendments are intended to address implementation issues in areas such as comfort letters for clients. Comments are requested by April 15.