Checkpoint | Document Page 1 of 16 Checkpoint Contents Accounting, Audit & Corporate Finance Library Editorial Materials Audit and Attest Clarified Auditing Standards Chapter 1 Introduction 100 The Clarified Standards 100 The Clarified Standards 100.1 The term clarified standards refers to the recodified Statements on Auditing Standards. The Auditing Standards Board embarked some years ago on a project to converge GAAS with the international auditing standards and, as part of that effort, to restructure the standards in a new format. The clarified standards are the culmination of that undertaking. 100.2 The focus of this Guide is the clarified standards that became effective in 2012, SAS Nos. 122-127. Planning and adaptation are necessary to implement the standards' comprehensive contribution to the literature and practice. Other standards, SAS Nos. 117-121, can be characterized as “clarified” because they conform to the new format, but they were already in effect and, presumably, have already been implemented. 100.3 The following standards are covered in this Guide: • SAS No. 122, Clarification and Recodification. • SAS No. 123, Omnibus SAS—2011. • SAS No. 124, Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country. • SAS No. 125, Alert That Restricts the Use of the Auditor's Written Communication. • SAS No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern. • SAS No. 127, Omnibus SAS—2013. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 2 of 16 100.4 SAS No. 122 comprises the bulk of the new literature. It supersedes most, but not all, of the existing standards. There is precedent to the Auditing Standards Board's approach. In 1963, Statement on Auditing Procedure No. 33 recodified and replaced the then-existing 32 standards. Nine years later, SAS No. 1 recodified and replaced the auditing rules in effect, which at the time consisted of SAP Nos. 33-54. And almost 40 years after that, SAS No. 122 replaces most of the existing standards. Of course, due to the ever-expanding universe of standards, it is interesting to note that SAP No. 33 was about 90 pages long and SAS No. 1 ran about 200 pages. SAS No. 122 alone is roughly 800 pages long. 100.5 SAS No. 123 contains technical corrections for consistency and clarity to five sections of SAS No. 122 and to SAS Nos. 117 and 118. 100.6 SAS Nos. 124-126 revise sections of the existing standards that the Auditing Standards Board decided to deal with outside of SAS No. 122. SAS No. 127 revises selected provisions of AU-C 600 (group audits) and AU-C 800 (reporting on special purpose frameworks). 100.7 After issuance of SAS No. 127, the standards applicable to audits of calendar year 2012 financial statements are: • SAS No. 65, The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements. (A proposed revised standard was tentatively approved for exposure in late 2012 but had not been exposed as this Guide went to press.) • SAS No. 117, Compliance Audits. • SAS No. 118, Other Information in Documents Containing Audited Financial Statements. • SAS No. 119, Supplementary Information in Relation to the Financial Statements as a Whole. • SAS No. 120, Required Supplementary Information. • SAS No. 122, Clarification and Recodification. • SAS No. 124, Financial Statements Prepared in Accordance with a Financial Reporting Framework Generally Accepted in Another Country. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 3 of 16 • SAS No. 125, Alert that Restricts the Use of the Auditor's Written Communication. • SAS No. 126, The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern. • SAS No. 127, Omnibus SAS—2013. Effective Date 100.8 SAS Nos. 122-127 are generally effective for audits of financial statements for periods ending on or after December 15, 2012. Certain provisions that do not deal directly with audits, however, have different effective dates, as follows: • AU-C 220 on application of quality control is effective for GAAS engagements for periods ending on or after December 15, 2012. • AU-C 915 on reports on the application of a financial reporting framework is effective for engagements ended on or after December 15, 2012. • AU-C 920 on letters to underwriters and other requesting parties is effective for letters issued on or after December 15, 2012. • AU-C 930 on reviews of interim financial information is effective for interim financials for interim periods beginning on or after December 15, 2012. • SAS No. 125 on restricted use communications has two effective dates. For— •• Written communications related to audits, it is effective at the same time as the other auditing standards, which is for audits of financial statements for periods ending on or after December 15, 2012. •• Other communications, it is effective for written communications issued on or after December 15, 2012. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 4 of 16 Practitioner Question: Can the clarified standards be implemented before the effective date? Answer: The standards do not prohibit early implementation. In fact, they are silent on early implementation. Historically, silence has been interpreted as allowing immediate implementation. This interpretation seems to be endorsed in SAS No. 122 (AU-C 200.A59), which says an auditor is permitted to apply a new standard before its effective date unless specifically prohibited. A practitioner who implements the standard before the effective date does not have to implement it for all engagements; some could be done under the clarified standards, while others wait for the specified effective date. However, the authors discourage early implementation of the clarified standards because of the potential for confusion about which standards are being applied. This is consistent with nonauthoritative guidance issued by the AICPA (see Clarity Project: Update and Final Products, dated January 2012, at www.aicpa.org), which indicates that early implementation is not appropriate because, for legal and peer review reasons, it is important that it be very clear which standards are in effect. Auditors who want to apply the clarified standards before the effective date, however, are not early adopting unless they implement the entire standard. For example, use of the new guidance for group audits without applying the new rules for terms of the engagement would not be implementing SAS No. 122 because the whole standard would not have been applied. To the extent that new procedures required under the clarified standards can be merely added to the procedures already being applied, nothing prevents the auditor from adding steps that are not required by standards without actually adopting the new standard. Section Numbers in Professional Standards 100.9 Typically, when a new standard replaces an existing standard but is not yet effective, both standards are codified into professional standards using the existing AU number distinguished by the use of the suffix A. The clarified standards take a different approach because of the extent of the revision and the Auditing Standards Board's decision to conform the numbering system to that used for international auditing standards. 100.10 The new standards carry section numbers with the prefix AU-C while the existing literature continues to use the AU designation. This is a temporary solution. In 2014, the AU-C reference numbers will change to the standard AU series and the existing AU series will disappear. 100.11 The reference numbers used in this Guide are those found in AICPA Professional Standards as this Guide went to print. SAS Nos. 124 and 125 are codified into AU-C 910 and 905, respectively. In addition, the amendments in SAS Nos. 123 and 127 changed some of the paragraph numbers in SAS No. 122; the references here are to the revised paragraph numbers. SAS No. 126 (going concern) replaced the guidance in SAS No. 59, which had been placed in AU-C 570. Format of Clarified Standards 100.12 The new standards take on a different look than that historically found in SASs. The format, which has been used in the auditing standards since SAS No. 117, is far more structured than in the past. Each AU-C section contains the following elements, to the extent they are relevant in the circumstances, in this order: https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 5 of 16 Introduction The introduction explains the scope, applicability, and purpose of the standard. It does not create any requirements, but explains what situations are covered. Effective date Each section carries an effective date. Objectives The objectives describe what the requirements of a section are expected to achieve. A standard is developed with the expectation that applying the required procedures will fulfill the objective. But, the auditor is expected to meet the objectives of the standard, even if that means applying procedures in addition to those stated in the standard. Definitions Unique terms, if any, are defined in the definitions section. Not all AU-C sections have a definitions section, but almost all do. Appendix 1B to this chapter is a glossary of the terms defined in the clarified standards. Requirements The requirements delineate the mandated procedures and reporting with which the auditor is expected to comply. All the text in this section is phrased in terms of either unconditional (must) or presumptively mandatory (should) requirements. The requirements do not provide commentary or background. To the extent such information is provided, it is in the application guidance and is cross-referenced to the applicable paragraph. Application and other explanatory material This section, which carries the paragraph designation A (for example, AU-C 200.A63), provides commentary, context, and suggestions on how to apply the requirements. Each paragraph, or group of paragraphs, is cross-referenced to the requirement to which it relates (AU-C 200.A63 is cross-referenced to AU-C 200.19, for example). The application guidance does not create any new requirements; it merely discusses those established in the requirements section, sometimes providing information that clarifies the intent of the requirement. Application guidance does not use the words must or should. The discussions typically use the word may, which does not create any obligation on the auditor's part. Nonetheless, the auditor is expected to understand the application guidance in applying the requirements. The application guidance often provides specific considerations for smaller, less complex entities or governmental entities. It explains how to apply the requirements to these entities, but does not change the requirements. Appendixes When included, an appendix to an AU-C section is part of the application guidance. The purpose and intended use of an appendix is explained either in its title or introduction or in the relevant AU-C section. Exhibits Exhibits are nonauthoritative. They provide examples and background commentary. Illustrative reports are ordinarily presented in exhibits. In addition, each AU-C section has an exhibit that compares the content of the SAS with its international counterpart. © 2013 Thomson Reuters/PPC. All rights reserved. END OF DOCUMENT © 2013 Thomson Reuters/RIA. All rights reserved. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 6 of 16 Checkpoint Contents Accounting, Audit & Corporate Finance Library Editorial Materials Audit and Attest Clarified Auditing Standards Chapter 1 Introduction 101 Highlights of Changes 101 Highlights of Changes Terminology 101.1 Although much of the terminology familiar to practitioners has been retained, the clarified standards introduce a number of new terms. This was done to conform with international terminology and to more clearly describe the subject matter. Appendix 1B provides a complete glossary of clarified terminology. 101.2 Some of the changed terms that are basic to understanding the clarified standards are: Old Term New Term GAAP Applicable financial reporting framework. The new standards are not GAAP-centric; they are written to apply to both GAAP and other bases of accounting. References to GAAP have been replaced with reference to the financial reporting framework, and discussions of the effects of the application of GAAP have been replaced with generic discussions. OCBOA Special purpose framework. A special purpose framework is different from a fair presentation framework, such as GAAP. The standard notes that OCBOA is a term commonly used to refer to some special purpose presentations, but does not use that term again. Tolerable misstatement Performance materiality. Tolerable misstatement, as used in SAS No. 107 (that is, financial statement materiality applied at the account balance or class of transactions level), is now called performance materiality. The term tolerable misstatement has been retained but is used only in the context of sampling applications. Emphasis-of-a-matter paragraph Emphasis-of-matter paragraph or other-matter paragraph. The concept of an additional paragraph that does not affect the opinion has been retained, but the name of the paragraph depends on its content: if it relates to something appearing in or disclosed in the financial statements, it is an emphasis-of-matter paragraph; if it relates to the audit, it is an other-matter paragraph. Financial statements containing components, such as consolidated https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 7 of 16 Old Term New Term or combined financial statements, principal auditor, other auditor Group financial statements, group audit team, group engagement partner, component auditor. (The divided-responsibility report, itself still refers to the component auditor as an other auditor, however.) Substantive Changes to the Standards 101.3 Virtually every section of the clarified standards creates new requirements. In addition, many of them eliminate existing requirements or relegate them to nonmandatory application guidance. The AICPA has characterized most of these changes as not substantive. However, they are still changes; they require that audit plans be changed. And their significance depends on the individual practitioner. If one of the nonsubstantive changes formed the basis for a firm's audit approach or its interpretation of the literature, that firm is likely to disagree that it is not substantive. A peer reviewer who determines that the firm's audit plan did not include a new requirement is unlikely to dismiss it as not substantive. 101.4 Each section in this Guide reconciles the new standard to the existing ones. The following discussion highlights some of the most fundamental changes. 101.5 Principles-based Guidance The new standards are described as principles based. They are intended to provide the basic rules that are to be applied as appropriate in the circumstances, rather than rules specifically written for each situation that might arise. The principles-based approach evinces itself in that: • Each section explains the objectives to be achieved by the requirements. Implementation of the requirements is still mandated, but the objectives provide the context, which helps auditors focus their judgment about how the requirements should be incorporated into their engagements and whether the related application guidance is applicable in the circumstances. • Many of the detailed procedures and considerations that were required in the existing standards are not specified in the clarified standards. Instead, a basic requirement is stated and the application guidance supplies a discussion about how the requirement may be implemented. (The term may does not connote a requirement, merely a possibility that might be considered.) Thus, the application guidance provides alternative ways of meeting the objectives and requirements, none of which is specifically required. The auditor can use a method discussed in the application guidance or choose another approach to fulfilling the requirement. • The guidance is written in the context of the range of possible financial reporting frameworks. The clarified standards are equally applicable to all financial reporting frameworks; they do not presume that GAAP underlies the financial statements. Accordingly, they no longer deal with specific GAAP-related issues, but speak to broader concerns. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 8 of 16 101.6 This is not to say the standards do not include detailed rules. The auditing guidance (excluding special engagements) in SAS No. 122, for example, contains roughly 500 paragraphs of requirements, many of which include multiple requirements. Nonetheless, the standards are written to be more broadly applicable. 101.7 It is hard to predict the effect of any change in philosophy on peer reviews. Early drafts of the peer review checklists to be used for audits done under the clarified standards remain requirement-based. 101.8 Unconditional Requirements Unconditional requirements are those the auditor always has to comply with (as opposed to presumptively mandatory requirements). The existing standards use the terms must or is required to denote unconditional requirements. The clarified standards use only the term must. In addition, the number of unconditional requirements is dramatically curtailed. While the existing standards use the term dozens of times, the clarified standards use it just four times, three of which deal with the term itself (the fourth requires independence). The term must is used in the clarified standards only when no alternative procedure would achieve the objective. 101.9 The 10 GAAS The 10 generally accepted auditing standards (three general standards, three fieldwork standards, and four reporting standards) have been deleted. Although they were historically significant, they had no more authority than the rest of the auditing standards and, given the revision and recodification of the standards to conform to the international standards, they no longer provide the structure for the codification. 101.10 Objectives Each AU-C section establishes objectives the auditor needs to achieve. If the procedures required by the section do not accomplish the stated objective, additional procedures need to be applied. Taken together, they summarize the effort needed in an audit. Appendix 1A provides a comprehensive list of the objectives in SAS Nos. 122-127 that can be used to focus the auditor's attention on the audit's goals. 101.11 Financial Reporting Framework The clarified standards assume a more principles-based perspective than their predecessors. They no longer presume that GAAP provides the basis of accounting underlying the financial statements, which makes it easier to apply the standards in a non-GAAP environment. On the other hand, the standards require that the auditor has to be satisfied that the financial reporting framework applicable to the engagement is acceptable. This is generally not an issue if GAAP is used because GAAP is presumed to be appropriate, but it creates a new requirement in non-GAAP situations. 101.12 Engagement Letters The engagement letter requirements have changed, so using last year's engagement letter will probably not comply with the new standards. Although multi-year engagement letters are still permitted, the auditor using a multi-year letter has to remind management of the terms of the engagement each year and document the reminder. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 9 of 16 101.13 Group Audits The most extensive change in SAS No. 122 concerns reporting on group financial statements (AU-C 600). AU-C 600 replaces AU 543, which primarily dealt with reporting on consolidated financial statements and the decision about whether or not to refer to another auditor who reported on a subsidiary or other component. AU-C 600 is much broader: it applies whenever there are component entities in the financial statements, even when different audit teams from the same firm are involved. It requires the group auditor to be far more involved with the audit of and decisions made at the level of the financial statement components that might be the province of a component auditor. It deals with engagement acceptance, the group auditor's determination of materiality at the group and component level, how components should be tested, and communications between the group auditor and component auditors. Section 501 discusses this new standard. AU-C 600 was subsequently modified by SAS No. 127. 101.14 Negative Confirmations SAS No. 67 essentially prohibited using negative confirmations to obtain evidence on most audits; they could be used as substantive procedures only when controls were effective, among other requirements. AU-C 505 allows their use in all cases and says that they can even be the sole substantive procedure if certain conditions are met. 101.15 Specialists The clarified standards provide different rules for the use of non-accounting specialists depending on who engages them. Management-engaged specialists are discussed in AU-C 500. If the auditor engages a specialist, whether or not the specialist works for the auditor's firm, the requirements for using the specialist's work are spelled out in AU-C 620. If the specialist is a member of the audit team, the specialist is treated like any other member of the team, subject to the usual supervision and review standards. 101.16 Representation Letters The management representation letter is substantially different under AU-C 580. Practitioners will not be able to cut and paste last year's letter. 101.17 Fair Presentation Historically, the standards never used the term fair presentation or fairly present unless it was modified to refer to the criteria used such as “in conformity with GAAP.” The clarified standards, in contrast, use the term on its own and say that mere conformity with GAAP, or another framework, does not necessarily mean the financial statements are fairly presented. This concept is easy to take out of context. The standards make clear that it is rare to depart from the framework (that is, deviations from the recognition or measurement rules or omission of a required disclosure), just as it always was. The financial statements may have to provide disclosures in addition to those required by the framework, which was not uncommon even before the clarified standards. 101.18 Audit Report Although the report is substantively unchanged, the format is very different. The standard report is now six paragraphs instead of three. It is required to use headings to identify the content of the different sections of the https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 10 of 16 standard report and any additional paragraphs. The new report is discussed in Chapter 6. Practitioner Question: What is the status of the auditing interpretations related to the standards that are being superseded? Answer: Some of the auditing interpretations have been carried forward into the codification of the clarified standards. Others are deleted either because their substance has been incorporated into the body of the standard or because the Auditing Standards Board believed they were no longer appropriate. Interpretations are not separately exposed or issued like standards, so the only way to know whether they have been retained is by looking for them in the new codification. Each section in this Guide provides a reconciliation of the new and old standards that discusses the disposition of each interpretation. Roadmap to the New Standards 101.19 Exhibit 1-1 shows where guidance in the existing standards has been moved in the clarified standards. It is taken from the exhibit to SAS No. 122. Exhibit 1-1 Location of Existing AU Sections in Clarified SASs Previous AU Section AU Superseded AU-C Section AU-C # Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards [1] 200 Quality Control for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards 220 Statements on Auditing Standards—Introduction 110 Responsibilities and Functions of the Independent Auditor All Defining Professional Requirements in Statements on Auditing Standards 120 150 161 All Generally Accepted Auditing Standards The Relationship of Generally Accepted Auditing Standards to Quality Control Standards All All The General Standards 201 Nature of the General Standards All 210 Training and Proficiency of the Independent Auditor All Overall Objectives of the Independent Auditor and the https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 200 5/8/2013 Checkpoint | Document Previous AU Section Page 11 of 16 AU Superseded AU-C Section Conduct of an Audit in Accordance With Generally Accepted Auditing Standards [1] 220 Independence All 230 Due Professional Care in the Performance of Work All AU-C # The Standards of Field Work All except .08-.10 Planning an Audit 311 .08-.10 312 314 315 300 Planning and Supervision Audit Risk and Materiality in Conducting an Audit Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement Communications Between Predecessor and Successor Auditors Terms of Engagement 210 Materiality in Planning and Performing an Audit 320 Evaluation of Misstatements Identified During the Audit 450 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement 315 All All Opening Balances—Initial All except .03-.10 Audit Engagements, and .14 Including Reaudit Engagements .03-.10 and .14 510 Terms of Engagement 210 316 Consideration of Fraud in a Financial Statement Audit All Consideration of Fraud in a Financial Statement Audit 240 317 Illegal Acts by Clients All Consideration of Laws and Regulations in an Audit of Financial Statements 250 318 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained All Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained 330 322 The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements All The Auditor's Consideration of the Internal Auditor Function in an Audit of Financial Statements (working title) a 610 324 Service Organizations All Audit Considerations Relating to an Entity Using a Service Organization 402 325 Communicating Internal Control Related Matters Identified in an Audit All Communicating Internal Control Related Matters Identified in an Audit 265 326 Audit Evidence All Audit Evidence 500 https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Previous AU Section Page 12 of 16 AU Superseded AU-C Section AU-C # 328 Auditing Fair Value Measurements and Disclosures All Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures [2] 540 329 Analytical Procedures All Analytical Procedures 520 330 The Confirmation Process All External Confirmations 505 331 Inventories All Audit Evidence—Specific Considerations for Selected Items [3] 501 332 Auditing Derivative Instruments, Hedging Activities, and Investments in Securities All Audit Evidence—Specific Considerations for Selected Items [3] 501 333 Management Representations All Written Representations 580 334 Related Parties All Related Parties 550 All Using the Work of an Auditor's Specialist 620 336 Using the Work of a Specialist 337 Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments All Audit Evidence—Specific Considerations for Selected Items [3] 501 339 Audit Documentation All Audit Documentation 230 All The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern 570 540 341 The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern 342 Auditing Accounting Estimates All Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures [2] 350 Audit Sampling All Audit Sampling 530 380 The Auditor's Communication With Those Charged With Governance All The Auditor's Communication With Those Charged With Governance 260 390 Consideration of Omitted Procedures After the Report Date All Consideration of Omitted Procedures After the Report Release Date 585 Forming an Opinion and Reporting on Financial Statements [4] 700 The First, Second, and Third Standards of Reporting 410 420 Adherence to Generally Accepted Accounting Principles All All Consistency of Financial Statements https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 708 5/8/2013 Checkpoint | Document Previous AU Section Page 13 of 16 AU Superseded AU-C Section AU-C # Consistency of Application of Generally Accepted Accounting Principles 431 Adequacy of Disclosure in Financial Statements All Modifications to the Opinion in the Independent Auditor's Report [5] 705 All Withdrawn N/A Forming an Opinion and Reporting on Financial Statements [4] 700 Modifications to the Opinion in the Independent Auditor's Report [5] 705 Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report [6] 706 .12-.13 Special Considerations— Audits of Group Financial Statements (Including the Work of Component Auditors) 600 .16-.18, .53-.57 Consistency of Financial Statements 708 .33-.34 Special Considerations— Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement 805 .71-.73 Subsequent Events and Subsequently Discovered Facts [7] 560 .01-.02 Forming an Opinion and Reporting on Financial Statements [4] 700 .03-.08 Subsequent Events and Subsequently Discovered Facts [7] 560 Alert That Restricts the Use of the Auditor's Written Communication 905 The Fourth Standard of Reporting 504 Association With Financial Statements .01-.11, .14-.15, .19-.32, .35-.52, .58-.70, and .74.76 508 530 532 Reports on Audited Financial Statements Dating of the Independent Auditor's Report Restricting the Use of an Auditor's Report All https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Previous AU Section 534 543 Reporting on Financial Statements Prepared for Use in Other Countries Part of Audit Performed by Other Independent Auditors Page 14 of 16 AU Superseded AU-C Section AU-C # All Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country 910 All Special Considerations— Audits of Group Financial Statements (Including the Work of Component Auditors) 600 800 544 Lack of Conformity With Generally Accepted Accounting Principles All Special Considerations— Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks [8] 550 Other Information in Documents Containing Audited Financial Statements All Other Information in Documents Containing Audited Financial Statements 720 551 Supplementary Information in Relation to the Financial Statements as a Whole All Supplementary Information in Relation to the Financial Statements as a Whole 725 552 Reporting on Condensed Financial Statements and Selected Financial Data All Engagements to Report on Summary Financial Statements 810 All Required Supplementary Information 730 Subsequent Events and Subsequently Discovered Facts [7] 560 Special Considerations— Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks [8] 800 Special Considerations— Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement 805 558 Required Supplementary Information 560 Subsequent Events 561 Subsequent Discovery of Facts Existing at the Date of the Auditor's Report All All Other Types of Reports .01-.10 and .22.34 623 Special Reports .11-.18 .19-.21 Reporting on Compliance With Aspects of Contractual Agreements or Regulatory Requirements in Connection https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 806 5/8/2013 Checkpoint | Document Page 15 of 16 Previous AU Section AU Superseded AU-C Section AU-C # With Audited Financial Statements All Reports on Application of Requirements of an Applicable Financial Reporting Framework 915 All Letters for Underwriters and Certain Other Requesting Parties 920 711 Filings Under Federal Securities Statutes All Filings With the U.S. Securities and Exchange Commission Under the Securities Act of 1933 925 722 Interim Financial Information All Interim Financial Information 930 All Compliance Audits 935 Audit Evidence—Specific Considerations for Selected Items [3] 501 625 634 Reports on the Application of Accounting Principles Letters for Underwriters and Certain Other Requesting Parties Special Topics Compliance Auditing 801 Compliance Audits Special Reports of the Committee on Auditing Procedure 901 Public Warehouses—Controls and Auditing Procedures for Goods Held All Legend: [n] — Bracketed number indicates a clarified standard that supersedes more than one extant AU section. Notes: a Not finalized as of March 2013. ____________________ © 2013 Thomson Reuters/PPC. All rights reserved. END OF DOCUMENT - https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013 Checkpoint | Document Page 16 of 16 © 2013 Thomson Reuters/RIA. All rights reserved. https://checkpoint.riag.com/app/view/toolItem?usid=bc03cnb59d0&feature=ttoc&lastCpRe... 5/8/2013