Statements of Position

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Description

This proposed Statement provides guidance to auditors to enable them to determine whether an engagement requires a restricted-use report and, if so, what elements to include in that report. Existing auditing standards for engagements requiring restricted-use reports each contain guidance related to the applicable report. This Statement unifies that guidance. This proposed Statement: 1. Describes the circumstances in which the use of an auditor's report should be restricted. 2. Specifies the language to be used in a restricted-use report. 3. Presents the rationale for restricting the use of an auditor's report in each of the circumstances described. 4. Replaces the terms restricted distribution and general distribution with the terms restricted use and general use because auditors are not responsible for controlling the distribution of the reports they issue. 5. Defines the terms restricted use and general use. 6. Clarifies that an auditor may restrict the use of a report that ordinarily is a general-use report. 7. Requires that an auditor restrict a "combined" report if it covers subject matter or presentations that ordinarily do not require a restriction on use and subject matter or presentations that require such a restriction. It permits auditors to include a separate general-use report in a document that also contains a restricted-use report. 8. Amends paragraph 47 of SAS No. 75, Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement (AICPA, Professional Standards, vol. 1, AU sec. 622), to permit the inclusion of a separate general-use report in a document containing an agreed-upon procedures report. This amendment does not change the requirement that an auditor restrict a "combined" report if it covers subject matter or presentations that ordinarily do not require a restriction on use and also covers agreed-upon procedures. See appendix A herein for the proposed amandment. 9. Deletes the words or other specified third party from the last sentence of the illustrative report in paragraph 12 of SAS No. 60, Communication of Internal Control Related Matters Noted in an Audit (AICPA, Professional Standards, vol. 1, AU sec. 325), because those words are inconsistent with the guidance in paragraph 10 of SAS No. 60, which does not provide for the addition of other specified third parties as report users. See appendix B herein for the proposed amendment. The proposed Statement would require that conforming changes be made to the guidance in the following documents: 1. SAS No. 51, Reporting on Financial Statements Prepared for Use in Other Countries (AICPA Professional Standards, vol. 1, AU sec. 534); 2. SAS No. 60, Communication of Internal Control Related Matters Noted in an Audit; 3. SAS No. 61, Communication With Audit Committees (AICPA, Professional Standards, vol. 1, AU sec. 380); 4. SAS No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623); 5. SAS No. 75 Engagements to Apply Agreed-Upon Procedures to Specified Elements, Accounts, or Items of a Financial Statement.

Publication Date

1998

Relational Format

Book

Keywords

Financial statements -- Standards -- United States; Auditors' reports -- 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.

Proposed statement on auditing standards : restricting the use of an auditor's report : and amendments of SAS No. 60, communication of internal control related matters noted in an audit, and SAS No. 75, engagements to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement ;Restricting the use of an auditor's report : and amendments of SAS No. 60, communication of internal control related matters noted in an audit, and SAS No. 75, engagements to apply agreed-upon procedures to specified elements, accounts, or items of a financial statement; Exposure draft (American Institute of Certified Public Accountants), 1998, Jan. 26

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