AICPA Updates Standards Involving Audit Confirmations

NEW YORK (May 14, 2026) - The Auditing Standards Board, a key standard-setting body of the American Institute of CPAs (AICPA), today approved a standards update that would modernize how CPAs obtain audit evidence through external confirmation procedures.

The new Statement on Auditing Standards: External Confirmations, introduces a new requirement for the auditor to use external confirmation procedures for cash and cash equivalents held by third parties unless certain conditions exist and provides updates to reflect the increasingly widespread use of intermediaries in external confirmation procedures. Additionally, the revisions require certain new conditions be met when using negative confirmations.

One key change is that the new standard provides guidance regarding directly accessing information maintained by a knowledgeable external source as a means of satisfying requirements related to external confirmation procedures.

"External confirmations remain a critical source of reliable audit evidence, and these updates are designed to strengthen that foundation in today's increasingly digital and intermediary-driven environment," said Jen Burns, chief auditor with the AICPA.

The new SAS, expected to be available shortly on aicpa-cima.com, will be effective for firms on Dec. 15, 2028, although early adoption is possible.

For general information about the ASB and to view the standard when published, please visit aicpa-cima.com/asb-standards.

About the American Institute of CPAs

The American Institute of CPAs (AICPA) is the world's largest member association representing the CPA profession, with 397,000 members and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education, and consulting. A founding member of the Association of International Certified Professional Accountants, the AICPA sets ethical standards for the profession, attestation standards, and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state, and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, partners across the profession to build future talent, and drives continuing education to advance the vitality, relevance, and quality of the profession.