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AICPA Issues SAS No. 150 on External Confirmations

The Auditing Standards Board rewrote the confirmation rules in July 2026, adding a requirement to confirm cash held by third parties. SAS No. 150 is effective for periods ending on or after December 15, 2028.

Brennan KolarBy Brennan KolarFounder, Atlas CPA Index
Published August 17, 20263 min readVerified as of August 17, 2026

What the AICPA Issued

The AICPA Auditing Standards Board issued Statement on Auditing Standards No. 150, External Confirmations, in July 2026. It amends AU-C section 505, External Confirmations, along with AU-C section 330 on responding to assessed risks, SAS No. 142 on audit evidence, and other sections of SAS No. 122 as amended. Jennifer Burns, CPA, the AICPA chief auditor, said external confirmations "remain a critical source of reliable audit evidence" in what she described as "today's increasingly digital and intermediary-driven environment."

What Changes

The standard makes four substantive changes to how auditors handle confirmations.
  • Cash confirmation becomes a requirement. Auditors have to perform external confirmation procedures for cash and cash equivalents held by third parties, unless certain conditions exist.
  • Negative confirmation requests carry new conditions that have to be met before an auditor can use them.
  • The guidance is rebuilt around intermediaries, which have become the ordinary channel for confirmations rather than the exception.
  • Direct access to information maintained by a knowledgeable external source can satisfy the confirmation requirements.

When It Takes Effect

SAS No. 150 is effective for audits of financial statements for periods ending on or after December 15, 2028, and early adoption is permitted. Audits being planned and performed now still run under the existing AU-C 505 requirements.

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What Candidates Should Do

Confirmations sit in the heaviest-weighted part of AUD. Performing Further Procedures and Obtaining Evidence carries 30 to 40 percent of the exam, and Assessing Risk and Developing a Planned Response carries another 25 to 35 percent. The version of AU-C 505 in your review course is the one that applies through 2028, so nothing here changes what you should be studying. The reason to know SAS No. 150 exists is practical rather than academic: if you start in audit over the next few years, confirming cash held by third parties moves from a judgment call to a requirement on most engagements, and firms will be revising confirmation procedures well ahead of the effective date. Our AUD exam guide covers the evidence and risk-response areas as currently tested.

Sources

  1. 1.Journal of Accountancy — AICPA Updates Audit Standards Related to External Confirmations (July 14, 2026)(accessed Aug 17, 2026)

Related on Atlas CPA Index

AUD Exam Guide →2026 CPA Exam Blueprint Updates →CPA Exam Changes →AICPA Ethics Rules for Tax Services →
Brennan Kolar

Brennan Kolar

Founder, Atlas CPA Index

Brennan Kolar is the founder of Atlas CPA Index, an independent CPA review comparison platform covering all 55 U.S. jurisdictions. With over 10 years of experience with CPA review, he built Atlas to help candidates find the right review course based on how they actually learn, not which provider has the biggest ad budget.

Learn more about the author

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