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Statement on auditing standards - alert that restricts the use of the auditor's written communication.

(Supersedes Statement on Auditing Standards No. 87, Restricting re·strict  
tr.v. re·strict·ed, re·strict·ing, re·stricts
To keep or confine within limits. See Synonyms at limit.



[Latin restringere, restrict- : re-,
 the Use of an Auditor's Report [AICPA AICPA

See American Institute of Certified Public Accountants (AICPA).
, Professional Standards, A U sec. 532 and AU-C sec. 905])

INTRODUCTION

Scope of This Statement on Auditing Standards

1. This Statement on Auditing Standards (SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. ) addresses the auditor's responsibility, when required or the auditor auditor n. an accountant who conducts an audit to verify the accuracy of the financial records and accounting practices of a business or government. A proper audit will point out deficiencies in accounting and other financial operations.  decides, to include in the auditor's report or other written communication issued by the auditor in connection with an engagement conducted in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[]

As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh.
 with generally accepted auditing standards Generally Accepted Auditing Standards, or GAAS, are ten auditing standards, developed by the AICPA, consisting of general standards, standards of field work, and standards of reporting, along with interpretations.  (GAAS See gallium arsenide. ) (hereinafter here·in·af·ter  
adv.
In a following part of this document, statement, or book.


hereinafter
Adverb

Formal or law from this point on in this document, matter, or case

Adv. 1.
 referred to in this SAS as auditor's written communication) language that restricts the use of the auditor's written communication. This language is referred to in this SAS as an alert. In an auditor's report, such language is included in an other-matter paragraph. (Ref: par. A1 and A3)

2. Appendix appendix, small, worm-shaped blind tube, about 3 in. (7.6 cm) long and 1-4 in. to 1 in. (.64–2.54 cm) thick, projecting from the cecum (part of the large intestine) on the right side of the lower abdominal cavity.  A, "List of AU-C Sections in AICPA Professional Standards Relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 the Restricted Use of the Auditor's Written Communication," identifies AU-C sections in AICPA Professional Standards that contain specific requirements to include an alert that restricts the use of the auditor's written communication or that otherwise address the inclusion of such alerts. Accordingly, the requirements in this SAS regarding the form of such alert apply (Ref: par. A2)

Effective Date

3. This SAS is effective for the auditor's written communications related to audits of financial statements for periods ending on or after December December: see month.  15, 2012. For all other engagements conducted in accordance with GAAS, this SAS is effective for the auditor's written communications issued on or after December 15, 2012.

OBJECTIVE

4. The objective of the auditor is to restrict In the C programming language, the data pointed to by a pointer declared with the restrict qualifier may not be pointed to by any other pointer. This allows for more effective optimization.  the use of the auditor's written communication by including an alert when the potential exists for the auditor's written communication to be misunderstood mis·un·der·stood  
v.
Past tense and past participle of misunderstand.

adj.
1. Incorrectly understood or interpreted.

2.
 if taken out of the context in which the auditor's written communication is intended to be used.

DEFINITION

5. For purposes of GAAS, the following term has the meaning attributed as follows:

Specified spec·i·fy  
tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies
1. To state explicitly or in detail: specified the amount needed.

2. To include in a specification.

3.
 parties. The intended users of the auditor's written communication.

REQUIREMENTS

Alert That Restricts the Use of the Auditor's Written Communication

6. The auditor's written communication should include an alert, in a separate paragraph, that restricts its use when the subject matter of the auditor's written communication is based on (Ref: par. A2-A3)

a. measurement or disclosure criteria criteria (krītēr´ē),
n.
 that are determined by the auditor to be suitable only for a limited number of users who can be presumed to have an adequate understanding of the criteria,

b. measurement or disclosure criteria that are available only to the specified parties, or

c. matters identified by the auditor during the course of the audit engagement when the identification of such matters is not the primary objective of the audit engagement (commonly referred to as a by-product report). (Ref: par. A4-A7)

7. Unless specified otherwise by this SAS or other relevant AU-C sections in AICPA Professional Standards, the alert that restricts the use of the auditor's written communication required by paragraph 6 should

a. state that the auditor's written communication is intended solely for the information and use of the specified parties.

b. identify the specified parties for whom use is intended. In situations covered by paragraph 6(c), the specified parties should only include management, those charged with governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. , others within the entity, the parties to the contract or agreement, or the regulatory reg·u·late  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 agencies to whose jurisdiction the entity is subject, as appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
     2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or
.

c. state that the auditor's written communication is not intended to be and should not be used by anyone other than the specified parties. (Ref: par. A8-A9)

Adding Other Specified Parties (Ref: par. A10) 8. When, in accordance with paragraph 6, the auditor includes an alert that restricts the use of the auditor's written communication to certain specified parties, and the auditor is requested to add other parties as specified parties, the auditor should determine whether to agree to add the other parties as specified parties. In situations covered by paragraph 6(c), the auditor should not agree to add as specified parties any other parties not described in paragraph 7(b).

9. When the auditor agrees to add other parties as specified parties, the auditor should obtain affirmative AFFIRMATIVE. Averring a fact to be true; that which is opposed to negative. (q.v.)
     2. It is a general rule of evidence that the affirmative of the issue must be proved. Bull. N. P. 298 ; Peake, Ev. 2.
     3.
 acknowledgment acknowledgment, in law, formal declaration or admission by a person who executed an instrument (e.g., a will or a deed) that the instrument is his. The acknowledgment is made before a court, a notary public, or any other authorized person. , in writing, from the other parties of their understanding of

a. the nature of the engagement resulting in the auditor's written communication,

b. the measurement or disclosure criteria used in the auditor's written communication, and

c. the auditor's written communication.

10. If the other parties are added after the release of the auditor's written communication, in addition to the requirements of paragraph 9, the auditor should take one of the following actions:

a. Amend the auditor's written communication to add the other parties. In such circumstances, the auditor should not change the original date of the auditor's written communication.

b. Provide a written acknowledgment to management and the other parties that such parties have been added as specified parties. The auditor should state in the acknowledgment that no procedures were performed subsequent to the original date of the auditor's written communication or the date that the engagement was completed, as appropriate.

Alert for Engagements Performed in Accordance With Government Auditing Standards (Ref: par. A11)

11. The alert language required by paragraph 7 should not be used when

a. the engagement is performed in accordance with Government Auditing Standards, and

b. the auditor's written communication pursuant to that engagement is issued in accordance with

i. AU-C section 265, Communicating Internal Control Related Matters Identified in an Audit (AICPA, Professional Standards);

ii. AU-C section 806, Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements (AICPA, Professional Standards); or

iii. AU-C section 935, Compliance Audits (AICPA, Professional Standards).

Instead, the alert required by paragraph 6 should

a. describe the purpose of the auditor's written communication and

b. state that the auditor's written communication is not suitable for any other purpose.

APPLICATION AND OTHER EXPLANATORY ex·plan·a·to·ry  
adj.
Serving or intended to explain: an explanatory paragraph.



ex·plan
 MATERIAL

Alert That Restricts the Use of the Auditor's Written Communication (Ref: par. 1-2 and 6)

A1. In addition to auditor's reports, auditor's written communications may include letters or presentation materials (for example, letters communicating internal control related matters or presentations addressing communications with those charged with governance).

A2. Certain AU-C sections in AICPA Professional Standards, identified in appendix A, contain specific requirements to include an alert that restricts the use of the auditor's written communication or that otherwise address the inclusion of such alerts. The need for an alert that restricts the use of the auditor's written communication arises from the potential for the auditor's written communication to be misunderstood if taken out of the context in which the auditor's written communication is intended to be used. The context in which the auditor's written communication is intended to be used may consist of a number of circumstances, including

* the purpose of the auditor's written communication;

* the nature of the procedures applied in its preparation;

* the basis of, or assumptions used in, its preparation; and

* the extent to which the procedures performed generally are known or understood.

A3. Auditor's reports on financial statements prepared in accordance with a general purpose framework ordinarily or·di·nar·i·ly  
adv.
1. As a general rule; usually: ordinarily home by six.

2. In the commonplace or usual manner: ordinarily dressed pedestrians on the street.
 do not include an alert that restricts their use. However, nothing in GAAS precludes an auditor from including such an alert in any auditor's report or other auditor's written communication. For example, financial statements prepared specifically for use in connection with an acquisition may be prepared in accordance with a general purpose framework because the parties involved in the transaction have agreed that such general purpose financial statements are appropriate for their purposes. Nevertheless, when the terms of the engagement to audit those financial statements require the auditor to supply the auditor's report only to specified parties, the auditor may consider it necessary in the circumstances to include an other-matter paragraph in the auditor's report that restricts the use of the auditor's report. (1)

A4. The subject matter of the auditor's written communication may be based on matters identified by the auditor during the course of the audit engagement when identification of such matters is not the primary objective of the audit engagement (commonly referred to as a by-product report) (for example, communication about internal control or compliance related matters identified in an audit of financial statements, the primary objective of which is to express an opinion on the financial statements). Because such communication can only be understood in relation to the primary objective of the audit engagement, it may be misinterpreted or misunderstood. Accordingly, paragraph 6(c) requires such auditor's written communication to include an alert that restricts its use.

Alert That Restricts the Use of the Auditor's Written Communication Included in General Use Communications

A5. An auditor's written communication that is required by paragraph 6 to include an alert that restricts its use may be included in a document that also contains an auditor's written communication that is for general use. In such circumstances, the use of the general use communication is not affected.

A6. An auditor may also issue a single combined auditor's written communication that includes (a) communications that are required by paragraph 6 to include an alert that restricts their use and (b) communications that are for general use. If these two types of communications are clearly differentiated dif·fer·en·ti·ate  
v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates

v.tr.
1. To constitute the distinction between:
 within the combined communication, such as through the use of appropriate headers, the alert that restricts the use of the auditor's written communication may be limited to the communications required by paragraph 6 to include such an alert. In such circumstances, the use of the general use communication is not affected. An example of a single combined auditor's written communication addressing a matter that was not the primary objective of the audit engagement that is included in a general use communication is provided in the exhibit "Illustrations of Reports on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements," of AU-C section 806. (2)

Distribution of the Auditor's Written Communication

A7. An auditor is not responsible for controlling, and cannot control, distribution of the auditor's written communication after its release. The alert that restricts the use of the auditor's written communication is designed to avoid misunderstandings related to the use of the auditor's written communication, particularly if the auditor's written communication is taken out of the context in which the auditor's written communication is intended to be used. An auditor may consider informing the entity or other specified parties that the auditor's written communication is not intended for distribution to parties other than those specified in the auditor's written communication. The auditor may, in connection with establishing the terms of the engagement, reach an understanding with the entity that the intended use of the auditor's written communication will be restricted and may obtain the entity's agreement that the entity and specified parties will not distribute such auditor's written communication to parties other than those identified therein.

Illustrative il·lus·tra·tive  
adj.
Acting or serving as an illustration.



il·lustra·tive·ly adv.

Adj. 1.
 Alert Language (Ref: par. 7)

A8. The alert that restricts the use of the auditor's written communication may list the specified parties or refer to the specified parties listed elsewhere in the auditor's written communication. The following illustrates language that includes the elements required by paragraph 7:
   This [report, letter, presentation, or communication]
   is intended solely for the information and use
   of [list or refer to the specified parties] and is not
   intended to be and should not be used by anyone
   other than these specified parties.


A9. Other AU-C sections in AICPA Professional Standards, such as AU-C section 920, Letters for Underwriters and Certain Other Requesting Parties (AICPA, Professional Standards), may include specific requirements relating to the matters to be included in the alert that restrict the use of the auditor's written communication, as required by paragraph 6, including identifying the specified parties.

Adding Other Specified Parties (Ref: par. 8-10)

A10. When the auditor is requested to add other parties as specified parties, the auditor may agree to add the other parties as specified parties based on the auditor's consideration of factors such as the identity of the other parties and the intended use of the auditor's written communication.

Alert for Engagements Performed in Accordance With Government Auditing Standards (Ref: par. 11)

A11. Government Auditing Standards regard the auditor's written communications issued pursuant to the AU-C sections in AICPA Professional Standards, identified in paragraph 11, to be an integral part of the audit engagement for the purpose of assessing the results of the engagement. Accordingly, different alert language is used. The following illustrates language that includes the elements of the alert required by paragraph 11 :
   The purpose of this [report, letter, presentation,
   or communication] is solely to [describe the purpose
   of the auditor's written communication, such
   as to describe the scope of our testing of internal
   control over financial reporting and compliance,
   and the result of that testing, and not to provide an
   opinion on the effectiveness of the entity's internal
   control over financial reporting or on compliance].
   This [report, letter, presentation, or communication]
   is an integral part of an audit performed
   in accordance with Government Auditing
   Standards in considering [describe the results that
   are being assessed, such as the entity's internal control
   over financial reporting and compliance].
   Accordingly, this [report, letter, presentation, or
   communication] is not suitable for any other
   purpose.


A12.

APPENDIX A-LIST OF AU-C SECTIONS IN AICPA PROFESSIONAL STANDARDS RELATING TO THE RESTRICTED USE OF THE AUDITOR'S WRITTEN COMMUNICATION

This appendix identifies paragraphs in other AU-C sections in AICPA Professional Standards that contain specific requirements to include an alert that restricts the use of the auditor's written communication or that otherwise address the inclusion of such alerts. The list is not a substitute for considering the requirements and related application and other explanatory material in the other AU-C sections in AICPA Professional Standards.

* Paragraph .17 of AU-C section 260, The Auditor's Communication With Those Charged With Governance

* Paragraphs.14(d), .A32, and .A38-.A39 of AU-C section 265, Communicating Internal Control Related Matters Identified in an Audit

* Paragraph .A16 of AU-C section 725, Supplementary Information in Relation to the Financial Statements as a Whole

* Paragraphs .20, .A26-.A27, and .A33 of AU-C section 800, Special Considerations--Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks

* Paragraphs.12-.13 and .A6-.A8 of AU-C section 806, Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements

* Paragraphs. 14(f) and .A6 of AU-C section 915, Reports on Application of Requirements of an Applicable Financial Reporting Framework

* Paragraphs .33 and .A34 of AU-C section 920, Letters for Underwriters and Certain Other Requesting Parties

* Paragraphs .30, .31(i), and .A33 of AU-C section 935, Compliance Audits

A13.

APPENDIX B-AMENDMENTS TO AU-C SECTIONS IN AICPA PROFESSIONAL STANDARDS Boldface See boldface font.  italic italic: see type.  denotes new language. Deleted Deleted

A security that is no longer included on a specified market. Sometimes referred to as "delisted".

Notes:
Reasons for delisting include violating regulations, failing to meet financial specifications set out by the stock exchange and going bankrupt.
 text is shown in [begin strike through]strikethough[end strike through].

AU-C Section 260, The Auditor's Communication With Those Charged With Governance

[No amendments are proposed to paragraphs .01-.16.]

Restricted Use

.17 When the auditor communicates matters in accordance with this section in writing, the communication is considered a by-product report. (1a) Accordingly, the auditor should indicate in the communication that it is intended solely for the information and use of those charged with governance and, if appropriate, management, and is not intended to be, and should not be, used by anyone other than these specified parties.

[No amendments are proposed to paragraphs .18-.20 or .A1-.A48]

AU-C Section 265, Communicating Internal Control Related Matters Identified in an Audit

[No amendments are proposed to paragraphs .01-.13.]

.14 The auditor should include in the auditor's written communication of significant deficiencies and material weaknesses (Ref: par..A29-.A33)

a. the definition of the term material weakness and, when relevant, the definition of the term significant deficiency A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. .

b. a description of the significant deficiencies and material weaknesses and an explanation of their potential effects. (Ref: par. .A29)

c. sufficient information to enable those charged with governance and management to understand the context of the communication. In particular, the auditor should include in the communication the following elements that explain that (Ref: par. .A30-.A31)

i. the purpose of the audit was for the auditor to express an opinion on the financial statements.

ii. the audit included consideration of internal control over financial reporting in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of internal control.

iii. the auditor is not expressing an opinion on the effectiveness

of internal control.

iv. the auditor's consideration of internal control was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies, and therefore, material weaknesses or significant deficiencies may exist that were not identified.

d. an appropriate alert, in accordance with section 905, [begin strike through]Restricting the Use of an Auditor's Report,[end strike through] Alert That Restricts the Use of the Auditor's Written Communication. (2a) [begin strike through]a restriction restriction - A bug or design error that limits a program's capabilities, and which is sufficiently egregious that nobody can quite work up enough nerve to describe it as a feature.  regarding the use of the communication to management, those charged with governance, others within the organization, and nay nay  
adv.
1. No: All but four Democrats voted nay.

2. And moreover: He was ill-favored, nay, hideous.

n.
1. A denial or refusal.
 governmental authority to which the auditor is required to report.[end strike through] (Ref: par. A32)

[Footnotes 2-7 will be renumbered as footnotes 34. No amendments are proposed to paragraphs .15-.16 and .A1-.A31.]

Restriction on Use (Ref: par .14d)

.A32 In certain cases not involving Government Auditing Standards, [begin strike through]L[end strike through]law or regulation may require the auditor or management to furnish fur·nish  
tr.v. fur·nished, fur·nish·ing, fur·nish·es
1. To equip with what is needed, especially to provide furniture for.

2.
 a copy of the auditor's written communication on significant deficiencies and material weaknesses to governmental authorities. When this is the case, the auditor's written communication may identify such governmental authorities in the paragraph containing the alert that restricts the use of the auditor's written communication. [begin strike through]Because the written communication is a by product of the audit,[end strike through] Section 905, Alert That Restricts the Use of the Auditor's Written Communication [begin strike through]([dagger])[end strike through] does not permit the auditor to add parties, other than those identified in paragraph [begin strike through].14d, as specified parties[end strike through] 7(b) of that section. (8) [begin strike through]In some instances, the restricted use communication may be included in a document that also contains a general use report. The restricted use communication remains restricted as to use, and the general use report continues to be for general use.[end strike through]

[No amendments are proposed to paragraphs .A33-.A37.]

EXHIBIT A-ILLUSTRATIVE AUDITOR'S WRITTEN COMMUNICATION

.A38

The following is an illustrative auditor's written communication encompassing the requirements in paragraph. 14.

To Management and [identify the body or individuals charged with governance, such as the entity's Board of Directors] of ABC Company

In planning and performing our audit of the financial statements of ABC Company (the "Company") as of and for the year ended December 31, 20XX, in accordance with auditing standards generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, , we considered the Company's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be [material weaknesses or material weaknesses or significant deficiencies] and therefore, [material weaknesses or material weaknesses or significant deficiencies] may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be [material weaknesses or significant deficiencies or material weaknesses and significant deficiencies].

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned as·sign  
tr.v. as·signed, as·sign·ing, as·signs
1. To set apart for a particular purpose; designate: assigned a day for the inspection.

2.
 functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement mis·state  
tr.v. mis·stat·ed, mis·stat·ing, mis·states
To state wrongly or falsely.



mis·statement n.
 of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. [We consider the following deficiencies in the Company's internal control to be material weaknesses:]

[Describe the material weaknesses that were identified and an explanation of their potential effects.]

[A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiencies in the Company's internal control to be significant deficiencies:]

[Describe the significant deficiencies that were identified and an explanation of their potential effects.]

[If the auditor is communicating significant deficiencies and did not identify any material weaknesses, the auditor may state that none of the identified significant deficiencies are considered to be material weaknesses.]

This communication is intended solely for the information and use of management, [identify the body or individuals charged with governance], others within the organization, and [identify any governmental authorities to which the auditor is required to report] and is not intended to be, and should not be, used by anyone other than these specified parties. (1b)

[Auditor's Signature]

[Auditor's City and State] [Date]

EXHIBIT B-ILLUSTRATIVE NO MATERIAL WEAKN ESS (1) (Electronic Switching System) A large-scale computer from Lucent used to route telephone calls in a telephone company office. The 5ESS is a Class 5 central office switch, and the 4ESS is a Class 4 tandem office switch.  COMMUNICATION

.A39

The following is an illustrative auditor's written communication indicating that no material weaknesses were identified during the audit of a not-for-profit organization.

To Management and [identify the body or individuals charged with governance, such as the entity 's Board of Directors] of [begin strike through]ABC Company[end strike through] NPO NPO [L.] nil per os (nothing by mouth).

NPO
abbr.
Latin nil per os (nothing by mouth)


NPO Nothing by mouth
 Organization

In planning and performing our audit of the financial statements of [begin strike through]ABC Company (the "Company")[end strike through] NPO Organization (the "Organization")as of and for the year ended December 31, 20XX, in accordance with auditing standards generally accepted in the United States of America, we considered the [begin strike through]Company's[end strike through] Organization's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the [begin strike through]Company's[end strike through] Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the [begin strike through]Company's[end strike through] Organization's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

[If one or more significant deficiencies have been identified, the auditor may add the following: Our audit was also not designed to identify deficiencies in internal control that might be significant deficiencies. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We communicated the significant deficiencies identified during our audit in a separate communication dated [date].]

This communication is intended solely for the information and use of management, [identify the body or individuals charged with governance], others within the organization, and [identify any governmental authorities to which the auditor is required to report] and is not intended to be, and should not be, used by anyone other than these specified parties. (1c)

[Auditor's Signature]

[Auditor's City and State] [Date]

[No amendments are proposed to paragraph A40.]

AU-C Section 725, Supplementary Information in Relation to the Financial Statements as a Whole

[No amendments are proposed to paragraphs .01-.13 and paragraphs .A1-.A15.]

.A16 When reporting on supplementary information in a separate report, t[begin strike through]T[end strike through]he auditor may consider including an alert that restricts [begin strike through]restricitin[end strike through] the use of [begin strike through]a[end strike through] the separate report [begin strike through]on supplementary information to[end strike through] solely to the appropriate specified parties, in accordance with section 905, [begin strike through]Restricting the Use of an Auditor's Report, ([dagger]a)[end strike through]-Alert That Restricts the Use of the Auditor's Written Communication, to avoid potential misinterpretation or misunderstanding of the supplementary information that is not presented with the financial statements.

[No amendments are proposed to paragraph .A17.l

AU-C Section 800, Special Considerations--Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks

[No amendments are proposed to paragraphs .01-.19.]

Restricting the Use of the Auditor's Report in an Other-Matter Paragraph (Ref: par. .A26-.A27)

.20 Except for the circumstances described in paragraph .21, the auditor's report on special purpose financial statements should include an other-matter paragraph, (9) under an appropriate heading, that restricts (10) the use of the auditor's report solely to those within the entity, the parties to the contract or agreement, or the regulatory agencies to whose jurisdiction the entity is subject when the special purpose financial statements are prepared in accordance with either

a. a contractual basis of accounting or

b. a regulatory basis of accounting.

[No amendments are proposed to paragraphs .21-.23 or paragraphs .A1-.A25.]

Restricting the Use of the Auditor's Report in an Other-Matter Paragraph (Ref: par. .20)

.A26 [begin strike through]When use of the auditor's report is restricted, the intended users are the specified arties.[end strike through] Special purpose financial statements prepared in accordance with a contractual or regulatory basis of accounting are suitable only for a limited number of users who can be presumed to have an adequate understanding of such bases of accounting. [begin strike through]The restriction on use of the auditor's report is necessary due to the nature of the report and the potential for the report to the misunderstood when take out of the context in which it was intended to be used.[end strike through] For example, special purpose financial statements prepared in accordance with a contractual basis of accounting are developed for and directed only to the parties to the contract or agreement. Accordingly, the alert that restricts the use of the auditor's report is required due to the nature of the report and the potential for the report to be taken out of the context in which the auditor's report was intended to be used. Section 905, [begin strike through]Restricting the Use of an Auditor's Report, ([dagger]b)[end strike through] Alert That Restricts the Use of the Auditor's Written Communication, addresses adding other parties as specified parties. .A27 In the case of special purpose financial statements prepared in accordance with a cash or tax basis of accounting, the auditor may consider it necessary in the circumstances of the engagement to [begin strike through]restrict the[end strike through] include an alert that restricts the use of the auditor's report.

[No amendments are proposed to paragraphs .A28-A32.]

APPENDIX A-OVERVIEW OF REPORTING REQUIREMENTS

.A33

The table below provides an overview of the reporting requirements depending on the special purpose framework.

AU-C Section 806, Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements

[No amendments are proposed to paragraphs .01-.11.]

Separate Report on Compliance With Aspects of Contractual Agreements or Regulatory Requirements

.12 When the auditor reports on compliance in a separate report, the report should include the following:

a. A title that includes the word independent to clearly indicate that it is the report of an independent auditor Independent Auditor

An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report.

Notes:
These auditors aren't affiliated with the company being audited.
.

b. An appropriate addressee (communications) addressee - One to whom something is addressed. E.g. "The To, CC, and BCC headers list the addressees of the e-mail message". Normally an addressee will eventually be a recipient, unless there is a failure at some point (an e-mail "bounces") or the message is  

c. A paragraph that states that the financial statements were audited in accordance with generally accepted auditing standards and an identification of the United States of America as the country of origin of those standards (for example, auditing standards generally accepted in the United States of America or U.S. generally accepted auditing standards) and the date of the auditor's report on those financial statements.

d. If the auditor expressed a modified opinion (1d) on the financial statements, a statement describing the nature of the modification. (Ref: par. .A4)

e. When no instances of noncompliance are identified by the auditor, a reference to the specific covenants or paragraphs of the contractual agreement or regulatory requirement Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country.  and a statement that nothing came to the auditor's attention that caused the auditor to believe that the entity failed to comply with specified aspects of contractual agreements or regulatory requirements, insofar in·so·far  
adv.
To such an extent.

Adv. 1. insofar - to the degree or extent that; "insofar as it can be ascertained, the horse lung is comparable to that of man"; "so far as it is reasonably practical he should practice
 as they relate to accounting matters (see paragraphs .07 and. 10).

f. When instances of noncompliance are identified by the auditor, a reference to the specific covenants or paragraphs of the contractual agreement or regulatory requirement, insofar as they relate to accounting matters, and a description of the identified instances of noncompliance. (Ref: par. .A5)

g. A statement that the report is being provided in connection with the audit of the financial statements.

h. A statement that the audit was not directed primarily toward obtaining knowledge regarding compliance, and accordingly, had the auditor performed additional procedures, other matters may have come to the auditor's attention regarding noncompliance with the specific covenants or paragraphs of the contractual agreement or regulatory requirement, insofar as they relate to accounting matters.

i. A paragraph that includes a description and the source of significant interpretations, if any, made by the entity's management relating to the provisions of the relevant contractual agreement or regulatory requirement.

j. A paragraph that includes an appropriate alert [begin strike through]restricts the use (2b) of the report to management, those charged with governance, others within the organization, the regulatory agency regulatory agency

Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S.
 responsible for the provision, or other parties to the contract or agreement,[end strike through] in accordance with the section 905, Alert That Restricts the Use of the Auditor's Written Communication.2 (Ref: par. .A6 and .A7)

k. The manual or printed signature of the auditor's firm and the city and state where the auditor practices.

l. The date of the report, which should be the same date as the auditor's report on the financial statements. (3)

Report on Compliance With Aspects of Contractual Agreements or Regulatory Requirements Included in the Auditor's Report

.13 When a report on compliance is included in the auditor's report on the financial statements, the auditor's report should include an other-matter paragraph (4) that includes a reference to the specific covenants or paragraphs of the contractual agreement or regulatory requirement, insofar as they relate to accounting matters, and also should include the following:

a. When no instances of noncompliance are identified by the auditor, a statement that nothing came to the auditor's attention that caused the auditor to believe that the entity failed to comply with specified aspects of the contractual agreements or regulatory requirements, insofar as they relate to accounting matters (see paragraphs .07 and .10).

b. When instances of noncompliance are identified by the auditor, a description of the identified instances of noncompliance. (Ref: par. .A5)

c. A statement that the communication is being provided in connection with the audit of the financial statements.

d. A statement that the audit was not directed primarily toward obtaining knowledge regarding compliance, and accordingly, had the auditor performed additional procedures, other matters may have come to the auditor's attention regarding noncompliance with the specific covenants or paragraphs of the contractual agreement or regulatory requirement, insofar as they relate to accounting matters.

e. A paragraph that includes a description and the source of significant interpretations, if any, made by the entity's management relating to the provisions of the relevant contractual agreement or regulatory requirement.

f. A paragraph that includes an appropriate alert [begin strike through]restricts the use (5) of the report to management, those charged with governance, others within the organization, the regulatory agency responsible for the provisions, or other parties to the contract or agreement,[end strike through] in accordance with section 905, Alert That Restricts the Use of the Auditor's Written Communication. (5) (Ref: par. .A6-.A7)

[No amendments are proposed to paragraphs .A1-.A5.]

Restrictions on the Use of the Auditor's Report (9a) (Ref: par. .12j and .13f)

.A6 [begin strike through]A restriction on[end strike through] An alert, [begin strike through]the use of the report on compliance to the specified parties,[end strike through] as discussed in paragraphs .12j and .13f, is necessary because, although compliance matters may be identified by the auditor during the course of the audit engagement, the identification of such matters is not the primary objective of the audit engagement. In addition, the basis, assumptions, or purpose of the provisions in contractual agreements or regulatory requirements to which the report on compliance relates are developed for, and directed only to, the parties to the contractual agreement or the regulatory agency responsible for the requirements.

.A7 [begin strike through]If the auditor's report on compliance is included in the auditor's report on the financial statement, the restriction on the use of the report on compliance to specified parties, as required by paragraph .13f, would apply to the entire auditor's report. If a separate report is issued, as described in paragraph .11, then only the report on compliance need be restricted as to use by the specified parties.[end strike through] The alert that restricts the use of the report indicates that only the report on compliance with aspects of contractual agreements or regulatory requirements is restricted. Accordingly, the intended use of the auditor's report on the financial statements is not affected by this alert.

.A8

[No amendments are proposed to illustrations 1-4.]

Illustration 5--Report on Compliance With Aspects of Contractual Agreements Given in a Combined Report, and No Instances of Noncompliance Were Identified

Independent Auditor's

[Appropriate Addressee]

Report on the Financial Statements (1e)

We have audited the accompanying ac·com·pa·ny  
v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies

v.tr.
1. To be or go with as a companion.

2.
 financial statements of ABC Company, which comprise To embrace, cover, or include; to confine within; to consist of.

In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise
 the balance sheet us of December 31, 20X1, and the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes to the financial statements Notes to the financial statements

A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements.
.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation o f financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. (2c) Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ABC Company as of December 31, 20XI, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter

In connection with our audit, nothing came to our attention that caused us to believe that ABC Company failed to comply with the terms, covenants, provisions, or conditions of sections XX to YY,, inclusive (theory) inclusive - In domain theory, a predicate P : D -> Bool is inclusive iff

For any chain C, a subset of D, and for all c in C, P(c) => P(lub C)

In other words, if the predicate holds for all elements of an increasing sequence then it holds for their least upper
, of the Indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading.

The term indenture primarily describes secured contracts and has several applications in U.S. law.
 dated July July: see month.  21, 20X0 with XYZ XYZ  
interj. Informal
Used to indicate to someone that the zipper of his or her pants is open.



[ex(amine) y(our) z(ipper).]
 Bank, insofar as they relate to accounting matters. However,, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the Company's noncompliance with the above-referenced terms, covenants, provisions, or conditions of the Indenture, insofar as they relate to accounting matters.

Restricted Use Relating to the Other Matter

The communication related to compliance with the aforementioned a·fore·men·tioned  
adj.
Mentioned previously.

n.
The one or ones mentioned previously.


aforementioned
Adjective

mentioned before

Adj. 1.
 Indenture described in the Other Matter paragraph is intended solely for the information and use of the boards of directors and management of ABC Company and XYZ Bank and is not intended to be and should not be used by anyone other than these specified parties. (3a)

Report on Other Legal and Regulatory Requirements

[Form and content of this section of the auditor's report will vary depending on the nature of the auditor's other reporting responsibilities.]

[Auditor's Signature]

[Auditor's City and State]

[Date of the Auditor's Report]

AU-C Section 915, Reports on Application of Requirements of an Applicable Financial Reporting Framework

[No amendments are proposed to paragraphs .01-.13.]

.14 The reporting accountant's written report should be addressed to the requesting party (for example, management or those charged with governance) and should include the following:

a. A brief description of the nature of the engagement and a statement that the engagement was performed in accordance with this section

b. Identification of the specific entity; a description of the specific transaction(s), if applicable; a statement of the relevant facts, circumstances, and assumptions; and a statement about the source of such information

c. A statement describing the appropriate application of the requirements of an applicable financial reporting framework (including the country of origin) to the specific transaction or type of report that may be issued on the entity's financial statements and, if appropriate, a description of the reasons for the reporting accountant's conclusion

d. A statement that the responsibility for the proper accounting treatment rests with the preparers of the financial statements, who should consult with their continuing accountant A person who has the requisite skill and experience in establishing and maintaining accurate financial records for an individual or a business. The duties of an accountant may include designing and controlling systems of records, auditing books, and preparing financial statements.  

e. A statement that any difference in the facts, circumstances, or assumptions presented may change the report

f. An alert that restricts the use of the report solely to the specified parties, as required by section 905, Alert That Restricts the Use of the Auditor's Written Communication (2d) [begin strike through]A separate paragraph at the end of the report that includes the following elements:

i. A statement indicating that the report is intended solely for the information and use of the specified parties

ii. An identification of the specified parties to whom use is restricted[end strike through]

iii. [begin strike through]A statement that the report is not intended to be and should not be used by anyone other than the specified parties[end strike through]

g. If the reporting accountant is not independent of the entity, a statement indicating the reporting accountant's lack of independence. The reporting accountant is neither required to provide, nor precluded from providing, the reasons for the lack of independence; however, if the reporting accountant chooses to provide the reasons for the lack of independence, the reporting accountant should include all the reasons therefor.

[Footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes."  3 will be renumbered as footnote 4. No amendments are proposed to paragraphs .A 1-.A5.]

A6. The [begin strike through]restriction of the use of the[end strike through] alert that restricts the use of the reporting accountant's written report referred to in paragraph .14(f) is not intended to preclude distribution of the report to the continuing accountant.

[No amendments are proposed to paragraphs .A7-.A8.]

AU-C Section 920, Letters for Underwriters and Certain Other Requesting Parties

[No amendments are proposed to paragraphs .01-.31.]

[begin strike through].32 The auditor should not mention in a comfort letter reports issued in accordance with section 265, Communicating Internal Control Related Matters Identified in an Audit, or any restricted use reports issued to the entity in connection with procedures performed on the entity's internal control over financial reporting in accordance with AT section 501, An Examination of an Entity's Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements.[end strike through]

.33 [begin strike through]The auditor should not refer to, or attach TO ATTACH, crim. law, practice. To an attachment for contempt for the non- take or apprehend by virtue of the order of a writ or precept, commonly called an attachment. It differs from an arrest in this, that he who arrests a man, takes him to a person of higher power to be disposed of; , any restricted use report to the comfort letter.[end strike through] The auditor should not mention, refer to, or attach to the comfort letter any report or other auditor's written communication that includes an alert that restricts the use of the auditor's written communication, in accordance with section 905, Alert That Restricts the Use of the Auditor's Written Communication, or any restricted use reports issued in accordance with Statements on Standards for Attestation The act of attending the execution of a document and bearing witness to its authenticity, by signing one's name to it to affirm that it is genuine. The certification by a custodian of records that a copy of an original document is a true copy that is demonstrated by his or her  Engagements or Statements on Standards for Accounting and Review Services [begin strike through]to the comfort letter.[end strike through] (Ref: par..A34)

[No amendments are proposed to paragraphs .34-.75 and .A1-.A33.]

.A34 An example of an auditor's written communication that includes an alert that restricts the use of the auditor's written communication that is not permitted to be mentioned, referred to, or attached to the comfort letter is an auditor's written communication issued in accordance with section 265, Communicating Internal Control Related Matters Identified in an Audit. Examples of restricted use reports that [begin strike through]is[end strike through] are not permitted to be mentioned, referred to, or attached to the comfort letter [begin strike through]is[end strike through] include a report on agreed-upon procedures and any restricted use report issued in connection with procedures performed on the entity's internal control over financial reporting, in accordance with AT section 501.

[No amendments are proposed to paragraphs .A35-.A93.]

AU-C Section 935, Compliance Audits

[No amendments are proposed to paragraphs .01-.29.]

Report on Compliance Only

.30 The auditor's report on compliance should be in writing and include the following elements:

a. A title that includes the word independent.

b. An addressee appropriate for the circumstances of the engagement.

c. An introductory paragraph that includes the following:

i. Identification of the one or more government programs covered by the compliance audit or reference to a separate schedule containing that information

ii. Identification of the applicable compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds).  or a reference to where they can be found

iii. Identification of the period covered by the report

d. A section with the heading "Management's Responsibility" that includes a statement that compliance with the applicable compliance requirements is the responsibility of the entity's management. If the document containing the auditor's report contains a separate statement by management about its responsibility for the applicable compliance requirements, the auditor's report should not include a reference to such statement by management.

e. A section with the heading "Auditor's Responsibility" that includes the following statements:

i. A statement that the auditor's responsibility is to express an opinion on the entity's compliance with the applicable compliance requirements based on the compliance audit

ii. A statement that the compliance audit was conducted in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, and the governmental audit requirement

iii. A statement that the compliance audit included examining, on a test basis, evidence about the entity's compliance with those requirements and performing such other procedures as the auditor considered necessary in the circumstances

iv. A statement that the auditor believes the compliance audit provides a reasonable basis for the auditor's opinion

v. A statement that the compliance audit does not provide a legal determination of the entity's compliance

f. If noncompliance results in a modified opinion, a section with an appropriate heading, indicating the basis for the modified opinion that includes a description of such noncompliance, or a reference to a description of such noncompliance in an accompanying schedule. (5a) (Ref: par..A34)

g. A section with the heading"Opinion" that includes the auditor's opinion, at the level specified by the governmental audit requirement, on whether the entity complied, in all material respects, with the applicable compliance requirements.

h. If other noncompliance that is required to be reported to be spoken of; to be mentioned, whether favorably or unfavorably.

See also: Report
 by the governmental audit requirement is identified (that is, noncompliance that does not result in a modified opinion), an other-matter paragraph (6) that includes a description of such noncompliance or a reference to a description of such noncompliance in an accompanying schedule. (Ref: par. .A34)

i. If the criteria used to evaluate compliance are

i. established or determined by contractual agreement or regulatory provisions that are developed solely for the parties to the agreement or regulatory agency responsible for the provisions or

ii. available only to the specified parties, [begin strike through]a separate paragraph at the end of the report that includes (1) a statement indicating that the report is intended solely for the information and use of the specified parties, (2) an identification of the specified parties to whom use is restricted, and (3) a statement that the report is not intended to be and should not be used by anyone other than the specified parties, (Ref: par. .A33)[end strike through] an alert describing the purpose of the auditor's report and that the report is not suitable for any other purpose, as required by section 905, Alert That Restricts the Use of the Auditor's Written Communication. (7)

j. The manual or printed signature of the auditor's firm.

k. The city and state where the auditor practices.

l. The date of the auditor's report.

[Revised October October: see month.  2011 to reflect conforming con·form  
v. con·formed, con·form·ing, con·forms

v.intr.
1. To correspond in form or character; be similar.

2.
 changes necessary due to the issuance of SAS No. 123.]

[Footnotes 7-17 will be renumbered as footnotes 8-18.1

Combined Report on Compliance and Internal Control Over Compliance

.31 If the governmental audit requirement requires the auditor to report on internal control over compliance and the auditor combines the auditor's report on compliance with a report on internal control over compliance, the following should be added to the report elements listed in paragraph .30, in a section with the heading "Internal Control Over Compliance" that appears before the section required by paragraph .30i, if any:

a. A statement that management is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, rules, and provisions of contracts or grant agreements applicable to government programs.

b. A statement that in planning and performing the compliance audit, the auditor considered the entity's internal control over compliance with the applicable compliance requirements to determine the auditing procedures for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance.

c. A statement that the auditor is not expressing an opinion on internal control over compliance.

d. A statement that the auditor's consideration of the entity's internal control over compliance was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses in internal control over compliance.

e. The definition of deficiency in internal control over compliance and material weakness in internal control over compliance.

f. A description of any identified material weaknesses in internal control over compliance or a reference to an accompanying schedule containing such a description.

g. If significant deficiencies in internal control over compliance were identified, the definition of significant deficiency in internal control over compliance and a description of the deficiencies or a reference to an accompanying schedule containing such a description.

h. If no material weaknesses in internal control over compliance were identified, a statement to that effect.

i. The [begin strike through]restricted use paragraph[end strike through] alert described in paragraph .30i. The [begin strike through]restricted use paragraph[end strike through] alert should be included in all combined reports on the entity's compliance and internal control over compliance.

A combined report on compliance and internal control over compliance is presented in the exhibit, "Illustrative Combined Report on Compliance With Applicable Requirements and Internal Control Over Compliance--(Unmodified Adj. 1. unmodified - not changed in form or character
unqualified - not limited or restricted; "an unqualified denial"

modified - changed in form or character; "their modified stand made the issue more acceptable"; "the performance of the modified aircraft
 Opinion on Compliance; No Material Weaknesses or Significant Deficiencies in Internal Control Over Compliance Identified)."

[No amendments are proposed to paragraphs .32-.43 and paragraphs .A1-.A32.]

[No amendments are proposed to paragraphs .A34-.A42.]

Auditing Standards Board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public  (2010-2011)

Danel R. Schubert, Chair

Thomas A. Ratcliffe Ratcliff or Ratcliffe may refer to a place or a person.

Places in the United Kingdom:
  • Ratcliff, London
  • Ratcliffe-on-Soar, Nottinghamshire
  • Ratcliffe-on-the-Wreake, Leicestershire
  • Ratcliffe Culey, Leicestershire
 

Ernest Er´nest

n. 1. See Earnest.
 E Baugh Baugh may refer to:
  • Carl Baugh, a creationist
  • Sammy Baugh, an American football player
  • Tom Baugh, an American football player
  • Scott Baugh, an American politician
, Jr.

Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1].  R. Richson

Brian R. Bluhm

Thomas M. Stemlar

Robert Robert, Henry Martyn 1837-1923.

American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876).

Noun 1.
 E. Chevalier

Mark H. Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent.  

Samuel Samuel, two books of the Bible, originally a single work, called First and Second Samuel in modern Bibles, and First and Second Kingdoms in the Septuagint. They are considered part of "Deuteronomistic history," in which the book of Deuteronomy functions as the  K. Cotterell Cotterell may refer to:
  • Cotterell Court, a multi-purpose arena in Hampton, New York
  • Frampton Cotterell, a village in South Gloucestershire
  • Reginald Cotterell Butler, an English sculptor
 

Kim Kim

orphan wanders streets of India with lama. [Br. Lit.: Kim]

See : Adventurousness
 L. Tredinnick

James James, person in the Bible
James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship.
James, rivers, United States
James.
 R. Dalkin

H. Steven Ste´ven

n. 1. Voice; speech; language.
Ye have as merry a steven
As any angel hath that is in heaven.
- Chaucer.

2. An outcry; a loud call; a clamor.
To set steven
to make an appointment.
 Vogel

David D. Duree

Phil PHIL Philosophy
Phil Philippine
PHIL Philippians
PHIL Philadelphia, PA, USA
PHIL Public Health Image Library (US CDC) 
 D. Wedemeyer Wedemeyer may refer to:
  • Albert Coady Wedemeyer, U.S. General in World War II
  • William Wedemeyer, U.S. politician
 

Edwin Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith.  G. Jolicoeur

Kurtis Kurtis can refer to:
  • Frank Kurtis, a car-builder and founder of Kurtis Kraft
  • Kurtis Trent from the game
  • Bill Kurtis, a television journalist
  • Kurtis, a recurring character in the and games
 A. Wolff Wolff , Kaspar Friedrich 1733-1794.

German anatomist noted for his pioneering work in embryology. His chief work, Theoria Generationis (1759), refuted the theory of preformation, which held that the embryo is a fully formed miniature adult.
 

David M. Morris

Megan E Zietsman

Kenneth R. Odom

Restricted Use Reports Task Force

Phil D. Wedemeyer, Chair,

assisted by Maria Manasses Manasses (mənă`səs), variant of Manasseh.  

James R. Dalkin

Randy The name Randy generally derives from the names Randall or Randolph (meaning wolf with a shield). Randy is used as a given name primarily in the US and Canada. Men known as Randy
  • Randy Fiesta - Currently working at Alabang.Known for his Dancing Moves.
 C. Roberts

Robert E. Chevalier

AICPA Staff

Charles Charles, archduke of Austria
Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by
 E. Landes Landes, department, France
Landes, department (1990 pop. 313,100), SW France, in Gascony, on the Atlantic coast. Mont-de-Marsan is the capital.
Landes, region, France
Landes (läNd), region, SW France.
 

Vice President

Professional Standards

and Services

Michael Michael, archangel
Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence.
 P. Glynn Glynn (Irish: An Gleann) is a quiet rural village on the outskirts of Larne, County Antrim, Northern Ireland. It had a population of 641 people in the 2001 Census. It is in the Larne Borough Council area.  

Senior Technical Manager

Audit and Attest To solemnly declare verbally or in writing that a particular document or testimony about an event is a true and accurate representation of the facts; to bear witness to. To formally certify by a signature that the signer has been present at the execution of a particular writing so as  Standards

Richard I. Miller

Special Counsel

Note: Statements on Auditing Standards Statements on Auditing Standards, commonly abbreviated as SAS, provide guidance to external auditors on generally accepted auditing standards (abbreviated as GAAS) in regards to auditing an entity and issuing a report.  are issued by the Auditing Standards Board, the senior technical body of the Institute designated to issue pronouncements on auditing matters. Rule 202, Compliance With Standards, of the Institute's Code of Professional Conduct requires compliance with these standards in an audit of a nonissuer.

Copyright [c] 2011 by American Institute of Certified See certification.  Public Accountants, Inc. New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, NY 10036-8775. All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please email copyright@aicpa.org See .org.

(networking) org - The top-level domain for organisations or individuals that don't fit any other top-level domain (national, com, edu, or gov). Though many have .org domains, it was never intended to be limited to non-profit organisations.

RFC 1591.
 with your request. Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Leigh (lē), town (1991 pop. 42,627), Wigan metropolitan district, NW England, in the Greater Manchester metropolitan area. Industries include cotton and rayon mills, metalworks, and machinery and electrical goods plants.  Farm Road, Durham Durham, town and district, England
Durham, town (1991 pop. 38,105) and district, county seat of Durham, NE England, on the sides of a hill nearly encircled by the Wear River. The town's small factories produce organs and carpets.
, NC 27707-8110.

(1.) Paragraph .08 of AU-C section 706, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report (AICPA, Professional Standards).

(1a.) [begin strike through]Paragraph .07 of section 905, Restricting the Use of an Auditor's Report. Statement on Auditing Standards (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified cod·i·fy  
tr.v. cod·i·fied, cod·i·fy·ing, cod·i·fies
1. To reduce to a code: codify laws.

2. To arrange or systematize.
 as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification Clarification

The removal of small amounts of fine, particulate solids from liquids. The purpose is almost invariably to improve the quality of the liquid, and the removed solids often are discarded.
 and Recodification, and will be superseded when it is redrafted for clarity Clarity is the property of being clear or transparent.

Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the
 and convergence convergence

Mathematical property of infinite series, integrals on unbounded regions, and certain sequences of numbers. An infinite series is convergent if the sum of its terms is finite.
 as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. .[end strike through] Paragraphs .06(c) and .07 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(1b.) When the engagement is also performed in accordance with Government Auditing Standards, the alert required by paragraph 14(d) may read as follows: "The purpose of this communication is solely to describe the scope of our testing of internal control over financial reporting and the results of that testing. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Company's internal control aver financial reporting. Accordingly, this communication is not suitable for any other purpose." The AICPA Audit Guide Government Auditing Standards and Circular Circular may refer to:
  • Circle, or something in the shape of a circle
  • Flyer (pamphlet), a single page leaflet advertising a nightclub, event, service, or other activity
  • Circular reasoning, also known as Begging the question.
 A-133 Audits provides additional interpretative in·ter·pre·ta·tive  
adj.
Variant of interpretive.



in·terpre·ta
 guidance, including illustrative reports.

(1c.) When the engagement is also performed in accordance with Government Auditing Standards, the alert required by paragraph 14(d) may read as follows: "The purpose of this communication is solely to describe the scope of our testing of internal control over financial reporting and the results of that testing. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control over financial reporting. Accordingly, this communication is not suitable for any other purpose." The AICPA Audit Guide Government Auditing Standards and Circular A-133 Audits provides additional interpretative guidance, including illustrative reports.

(1d.) See section 705, Modifications to the Opinion in the Independent Auditor's Report.

(1e.) The subtitle sub·ti·tle  
n.
1. A secondary, usually explanatory title, as of a literary work.

2. A printed translation of the dialogue of a foreign-language film shown at the bottom of the screen.

tr.v.
 "Report on the Financial Statements" is unnecessary in circumstances when the second subtitle "Report on Other Legal and Regulatory Requirements" is not applicable.

(2.) New illustration 5, "Report on Compliance With Aspects of Contractual Agreements Given in a Combined Report, and No Instances of Noncompliance Were Identified," in the exhibit "Illustrations of Reports on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements," of AU-C section 806, Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection With Audited Financial Statements (AICPA, Professional Standards).

(2a.) [begin strike through]Statement on Auditing Standards (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905 as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision.[end strike through] Paragraphs .06(c), .07, and. 11 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(2b.) [begin strike through]See section 905, Restricting the Use of an Auditor's Report[end strike through] Paragraphs .06(c), .07, and. 11 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(2c.) In circumstances when the auditor also has responsibility to express an opinion on the effectiveness of internal control in conjunction conjunction, in astronomy
conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun.
 with the audit of the financial statements, this sentence would be worded as follows: "In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances." In addition, the next sentence "Accordingly, we express no such opinion," would not be included.

(2d.) See paragraphs .06(a)-(b) and.07 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(3.) Paragraph .41 of section 700, Forming an Opinion and Reporting on Financial Statements.

(3a.) When the engagement is also performed in accordance with Government Auditing Standards, the alert may read us follows: "The purpose of the communication related to compliance with the aforementioned [compliance requirements] described in the Other Matter paragraph [or, Report on Compliance] is solely to describe the scope of our testing of compliance and the results of that testing. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering ABC Company's compliance. Accordingly, this communication is not suitable for any other purpose." The AICPA Audit Guide Government Auditing Standards and Circular A-133 Audits provides additional interpretative guidance, including illustrative reports.

(4.) See section 706, Emphasis-@Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report, for guidance on other-matter paragraphs.

(5.) See footnote 2.

(5a.) Paragraph. 17 of section 705, Modifications to the Opinion in the Independent Auditor's Report. ]Footnote added, October 2011, to reflect conforming changes necessary due to the issuance of SAS No. 123.]

(6.) Paragraph .08 of section 706, Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report. [Footnote added, October 2011, to reflect conforming changes necessary due to the issuance of SAS No. 123.]

(7.) See paragraphs .06(a)--(b),. 11, and .A 11 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(8.) Paragraph .08 of section 905, Alert That Restricts the Use of the Auditor's Written Communication.

(9.) Paragraph .08 of section 706.

(9a.) See footnote 2

(10.) See paragraphs .06(a)-(b) and .07 of section 905, [begin strike through]Restricting the Use of an Auditor's Report[end strike through] Alert That Restricts the Use of the Auditor's Written Communication. [begin strike through](SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision.[end strike through]

[begin strike through](16.) Footnote 4 of section 905, Restricting the Use of an Auditor's Report. (Statement on Auditing Standards (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence Project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision. [Footnote renumbered and revised, October 2011, to reflect conforming changes necessary due to the issuance of SAS No 122. Footnote--renumbered, October 2011, to reflect--conforming changes necessary due to the issuance of SAS No. 123.][end strike through]

[begin strike through]([dagger]) Statement on Auditing Standards (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision.[end strike through]

[begin strike through]([dagger]a) (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision. [Footnote added, October 2011, to reflect conforming changes necessary due to the issuance of SAS No 122.][end strike through]

[begin strike through]([dagger]b) (SAS) No. 87, Restricting the Use of an Auditor's Report, is currently effective and codified as AU section 532. SAS No. 87 has been included in section 905, as designated by SAS No. 122, Statements on Auditing Standards: Clarification and Recodification, and will be superseded when it is redrafted for clarity and convergence as part of the Clarification and Convergence project of the Auditing Standards Board. Until such time, section 905 has been conformed to reflect updated section and paragraph cross references but has otherwise been subjected to a comprehensive review or revision.[end strike through]
                  Cash Basis          Tax Basis

Opinion(s)        Single opinion on   Single opinion on
                  special purpose     special purpose
                  framework           framework

Description of    No                  No
purpose for
which special
purpose
financial
statements are
prepared (19)

Emphasis-of-      Yes                 Yes
matter
paragraph
alerting
readers ctketef
regarding the
preparation in
accordance with
a special
purpose
framework (20)

Other-matter      No                  No
paragraph
including an
alert
restricting the
use of the
auditor's
report (21)

Exhibit A         1                   2
Illustrations

                  Regulatory Basis    Regulatory Basis
                                      (General Use)

Opinion(s)        Single opinion on   Dual opinion on
                  special purpose     special purpose
                  framework           framework and
                                      generally accepted
                                      accounting
                                      principles
                                      (GAAP) (18)

Description of    Yes                 Yes
purpose for
which special
purpose
financial
statements are
prepared (19)

Emphasis-of-      Yes                 No
matter
paragraph
alerting
readers ctketef
regarding the
preparation in
accordance with
a special
purpose
framework (20)

Other-matter      Yes                 No
paragraph
including an
alert
restricting the
use of the
auditor's
report (21)

Exhibit A         3                   4
Illustrations

                  Contractual Basis

Opinion(s)        Single opinion on
                  special purpose
                  framework

Description of    Yes
purpose for
which special
purpose
financial
statements are
prepared (19)

Emphasis-of-      Yes
matter
paragraph
alerting
readers ctketef
regarding the
preparation in
accordance with
a special
purpose
framework (20)

Other-matter      Yes
paragraph
including an
alert
restricting the
use of the
auditor's
report (21)

Exhibit A         5
Illustrations

(18.) Paragraph .21.

(19.) Paragraph. 186.

(20.) Paragraphs.19 and 21.

(21.) Paragraphs.20-.21.
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Publication:Journal of Accountancy
Date:Feb 1, 2012
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