Statements of Position



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The Auditing Standards Board is proposing an amendment to Statement on Auditing Standards (SAS) No. 31, Evidential Matter (AICPA, Professional Standards, vol. 1, AU sec. 326), to incorporate the concept of evidential matter in electronic form. The proposed amendment also provides guidance regarding the potential audit impacts of evidential matter in electronic form and describes matters an auditor should consider in such circumstances. This proposed Statement would provide guidance for a practitioner who has been engaged to audit an entity's financial statements where significant information is transmitted, processed, maintained, or accessed electronically. The proposed Statement would include examples of evidential matter in electronic form and provide that an auditor should consider the time during which such evidential matter exists or is available in determining the nature, timing, and extent of substantive tests. In addition, the proposed Statement would indicate that an auditor may determine that, in certain engagement environments where evidential matter is in electronic form, it would not be practical or possible to reduce detection risk to an acceptable level by performing only substantive tests. The proposed Statement would provide that in such circumstances, an auditor should consider performing tests of controls to support an assessed level of control risk below the maximum for affected assertions. This proposed Statement would amend SAS No. 31.

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Auditing -- Standards --United States; Evidence, Documentary


Accounting | Taxation


Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.

Proposed statement on auditing standards : amendment to statement on auditing standards no. 31,



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