Statement on Auditing Standards No. 55
Encyclopedia
Statement on Auditing Standards (SAS) No. 55: Consideration of Internal Control in a Financial Statement Audit, commonly abbreviated as SAS 55, is an auditing statement issued by the Auditing Standards Board
of the American Institute of Certified Public Accountants
(AICPA) in April 1988. It requires the auditor to obtain an understanding of an entity’s internal control
sufficient to plan any audit on such entity. Identifying and evaluating relevant controls is an important step in the user auditor’s overall audit approach.
Auditing Standards Board
In the United States, the Auditing Standards Board is the senior technical committee designated by the American Institute of Certified Public Accountants to issue auditing, attestation, and quality control statements, standards and guidance to certified public accountants for non-public company...
of the American Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Founded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...
(AICPA) in April 1988. It requires the auditor to obtain an understanding of an entity’s internal control
Internal control
In accounting and auditing, internal control is defined as a process effected by an organization's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization's...
sufficient to plan any audit on such entity. Identifying and evaluating relevant controls is an important step in the user auditor’s overall audit approach.