AICPA Issues SAS 144 on the Use of Specialists and Pricing Information from External Information Sources

AICPA Issues SAS 144 on the Use of Specialists and Pricing Information from External Information Sources

The Auditing Standards Board (ASB) of the AICPA has issued the new standard, Statement on Auditing Standards (SAS) No. 144, Amendments to AU-C Sections 501, 540, and 620 Related to the Use of Specialists and the Use of Pricing Information Obtained From External Information Sources.

The AICPA Chief Auditor, Jennifer Burns, CPA, explains the reasons for the development of SAS 144 in response to stakeholder feedback: 

“We heard feedback that more guidance on auditing the fair value of financial instruments would be helpful. This new standard provides that and has a particular focus on the use of pricing services,” said Ms. Burns. “We’ve also taken the opportunity to modernize our standards on management’s and auditors’ use of specialists, which is becoming more common due to the growing complexity of today’s financial reporting.”

What SAS 144 Does

SAS 144 amends SAS No. 143, Auditing Accounting Estimates and Related Disclosures (AU-C Section 540 in AICPA Professional Standards) and other standards, including SAS No. 122, Clarification and Recodification, Sections 501 and 620.

The primary amendments affect the following AU-C Sections:

• AU-C Section 501, Audit Evidence — Specific Considerations for Selected Items (AICPA, Professional Standards);
• AU-C Section 540, Auditing Accounting Estimates and Related Disclosures (AICPA, Professional Standards); and
• AU-C Section 620, Using the Work of an Auditor’s Specialist (AICPA, Professional Standards);

These amendments include guidance on:

• Application of SAS 143 when management has used the work of a specialist in developing accounting estimates;
• Evaluating estimates related to the fair value of financial instruments using a new appendix to AU-C Section 500, Audit Evidence; and
• Using the work of an auditor’s specialist.

Effective Date

SAS 144 will be effective for audits of financial statements for periods ending on or after December 15, 2023. 

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