Risk Assessment Suite of Standards

The Auditing Standards Board issued eight Statements on Auditing Standards that provide guidance on the auditor's assessment of the risks of material misstatement in a financial statement audit, and provide guidance on the design and performance of audit procedures. These standards also provide guidance on planning and supervision, the nature of audit evidence and evaluating the audit evidence obtained.

Compiled into one handy paperback book, the Suite of Standards includes:

• SAS No. 104, Amendment to Statement on Auditing Standards No. 1, Codification of Auditing Standards and Procedures ("Due Professional Care in the Performance of Work")
• SAS No. 105, Amendment to Statement on Auditing Standards No. 95, Generally Accepted Auditing Standards
• SAS No. 106, Audit Evidence
• SAS No. 107, Audit Risk and Materiality in Conducting an Audit
• SAS No. 108, Planning and Supervision
• SAS No. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
• SAS No. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained
• SAS No. 111, Amendment to Statement on Auditing Standards No. 39, Audit Sampling

The Standards enhance the auditors' application of the audit risk model in practice by specifying:

• More in-depth understanding of the entity and its environment — including its internal control — to identify the risks of material misstatement in the financial statements and what the entity is doing to mitigate them
• More rigorous assessment of the risks of material misstatement of the financial statements based on that understanding
• Improved linkage between the assessed risks and the nature, timing, and extent of audit procedures performed in response to those risks