Download Full Text (636 KB)
If adopted, this proposed Statement would supersede Statement on Auditing Standards No. 2, Reports on Audited Financial Statements, paragraphs 21 through 26. It provides additional guidance to assist the auditor in deciding whether to modify ("subject to") his report because of a matter involving an uncertainty. This reporting guidance follows the framework of FASB Statement No. 5, Accounting for Contingencies, which discusses contingencies in terms of the probable, reasonably possible and remote likelihood of their occurrence. Guidance regarding procedures for auditing uncertainties is also provided.
Contingencies in finance -- Accounting; Uncertainty
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : The auditor's consideration of uncertainties;Auditor's consideration of uncertainties" (1985). Statements of Position. 485.