Statements of Position

Files

Download

Download Full Text (450 KB)

Description

This is an exposure draft of a Statement on Auditing Standards on public reporting on limited reviews of interim financial information. The exposure period is unavoidably short so that the Committee can furnish guidance to CPAs who may be asked to report on limited reviews early in 1976. We recognize that this is traditionally a very busy time for CPAs but seek to assure that this exposure draft nevertheless will receive appropriate attention. In developing this exposure draft the Auditing Standards Executive Committee considered the provisions of the SEC's Accounting Series Release (ASR) No. 177, which permits a registrant to disclose in quarterly financial filings whether a limited review of interim data was performed by a CPA. A registrant that makes the disclosure must also state whether adjustments and disclosures proposed by the CPA as a result of the limited review were reflected in the related financial information. Most of the members of the Executive Committee believe that clients making these representations to the SEC cannot be prohibited from making the same representations in reports to stockholders. Further, clients that are not registrants may choose to have certain data subjected to a limited review on a timely basis. Consequently, it is likely that some companies will include representations concerning limited reviews of financial information in quarterly stockholders' reports beginning with the first calendar quarter of 1976. With that background, the key decision reflected in this draft is that the public is better served if a CPA's report is included with the data subjected to a limited review than if a client makes a representation about the results of a CPA's review. That decision will result in a significant change from current practice concerning reports on unaudited financial information. The draft provides for a form of report that includes an expression of limited assurance based on the performance of specified procedures established in Statement on Auditing Standards No. 10, "Limited Review of Interim Financial Information." This report is based on the concept that users will be able to distinguish among various types of assurance providing the limits of the assurance are disclosed in the CPA's report and the underlying procedures meet professional standards.

ISBN

ed76-02-06

Publication Date

1976

Relational Format

Book

Keywords

Financial statements, Interim -- Standards -- United States

Disciplines

Accounting | Taxation

Comments

Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 6

Proposed statement on auditing standards : Public reporting on a limited review of interim financial information;Public reporting on a limited review of interim financial information

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.