Exposure Drafts, Comment Letters, and Statements of Position
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Description
Pursuant to the Securities Exchange Act of 1934, certain entities are required to file periodic interim financial information with the Securities and Exchange Commission or another specified regulatory agency. This interim financial information, which is available to the public, is not required to be timely reviewed by an independent auditor. These entities are also required to notify the appropriate regulatory agency about a change of auditor, which provides public information about the identity of the auditors of these entities' annual financial statements. In recognition of these unique filing requirements, this proposed Statement establishes requirements for communications to management and, in certain situations, to audit committees concerning certain matters involving interim financial information filed or to be filed with specified regulatory agencies. This proposed Statement: 1. Applies only to auditors of entities that file interim financial information with the Securities and Exchange Commission or another specified regulatory agency pursuant to the Securities Exchange Act of 1934. 2. Requires the auditor to communicate with management as soon as practicable when he or she has given substantive attention to the accounting for, or financial reporting of, specific events or transactions of the entity and, as a result of that attention, becomes aware of information that causes him or her to believe that interim financial information is probably materially misstated. 3. Requires the auditor to communicate the above matter to the audit committee if management does not respond appropriately within a reasonable period of time. 4. Requires the auditor to consider whether to serve, or continue to serve, as the entity's auditor if the audit committee does not respond appropriately within a reasonable period of time. This proposed Statement does not amend or supersede an existing statement on auditing standards.
Publication Date
1990
Relational Format
Book
Keywords
Financial statements, Interim -- Standards -- United States
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : communication of matters about interim financial information filed or to be filed with specified regulatory agencies;Communication of matters about interim financial information filed or to be filed with specified regulatory agencies; Exposure draft (American Institute of Certified Public Accountants), 1990, June 15" (1990). Exposure Drafts, Comment Letters, and Statements of Position. 536.
https://egrove.olemiss.edu/aicpa_sop/536
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.