AICPA to update auditing rules to reflect blockchain and new technologies

Written on Jul 16, 2019

The Auditing Standards Board (ASB) of the AICPA has announced plans to update the existing auditing standards to reflect the impact of new technologies such as distributed ledger technology (DLT), robotic process automation (RPA), artificial intelligence (AI) and others on the rapidly evolving technical audit industry.

Because of the increasing use of blockchain technology, AI, data analytics and other emerging technologies for auditing purposes, the AICPA is looking to revise the Audit Evidence Statement on Auditing Standards (SAS) to add room for new technologies.

The ASB has recognized the huge impact that DLT and other new technologies have on audit practice, especially in the area of evidencing data, and as such, it is now holding talks with stakeholders to come up with the best ways to update existing audit standards to meet the changing technical audit ecosystem.

According to the AICPA, new audit techniques like audit data analytics (ADA), as well as new technologies used in the audit process, including blockchain technology, RPA, and AI, comes with real challenges and opportunities that will significantly affect both financial and non-financial audits information in the near future.

The AICPA has made it clear that once concrete agreement concerning the revisions is reached by the stakeholders, the Proposed SAS, Audit Evidence, will take precedence over SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and section 500, Audit Evidence.

The proposed revision will tackle issues such as the application of professional skepticism, expanding information sources to be used as audit evidence and more.

Feedback and comments are encouraged until Sept. 18, 2019. The proposed SAS will take effect from June 15, 2021.

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