Public Company Accounting Oversight Board; Notice of Filing of Proposed Rules to Implement the Reorganization of PCAOB Auditing Standards and Related Changes to PCAOB Rules and Attestation, Quality Control, and Ethics and Independence Standards, 36601-36652 [2015-15571]
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Vol. 80
Thursday,
No. 122
June 25, 2015
Part II
Securities and Exchange Commission
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Public Company Accounting Oversight Board; Notice of Filing of Proposed
Rules to Implement the Reorganization of PCAOB Auditing Standards and
Related Changes to PCAOB Rules and Attestation, Quality Control, and
Ethics and Independence Standards; Notice
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Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
by the Board and approved by the SEC,
including, to the extent not superseded
or amended by the Board, AICPA
Statements on Auditing Standards as in
existence on April 16, 2003.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75251; File No. PCAOB
2015–01]
Public Company Accounting Oversight
Board; Notice of Filing of Proposed
Rules to Implement the Reorganization
of PCAOB Auditing Standards and
Related Changes to PCAOB Rules and
Attestation, Quality Control, and Ethics
and Independence Standards
June 19, 2015.
Pursuant to Section 107(b) of the
Sarbanes-Oxley Act of 2002 (the ‘‘Act’’),
notice is hereby given that on June 17,
2015, the Public Company Accounting
Oversight Board (the ‘‘Board’’ or the
‘‘PCAOB’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’) the proposed rules
described in items I and II below, which
items have been prepared by the Board.
The Commission is publishing this
notice to solicit comments on the
proposed rules from interested persons.
I. Board’s Statement of the Terms of
Substance of the Proposed Rules
On March 31, 2015, the Board
adopted amendments to implement the
reorganization of PCAOB auditing
standards and related changes to
PCAOB rules and attestation, quality
control, and ethics and independence
standards (collectively referred to as, the
‘‘amendments’’ or the ‘‘proposed
rules’’).
The text of the proposed rules is set
out below.
Amendments to Rules of the Board
Rule 3101. Certain Terms Used in
Auditing and Related Professional
Practice Standards
Rule 3101. Certain Terms Used in
Auditing and Related Professional
Practice Standards, is amended as
follows:
In paragraph (b), the phrase ‘‘adopted
in Rules 3200T, 3300T, 3400T, 3500T,
and 3600T’’ is deleted.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Rule 3200T. Interim Auditing Standards
Rule 3200T. Interim Auditing
Standards, is amended as follows:
• The letter ‘‘T’’ is removed from the
reference to Rule 3200T.
• The word ‘‘Interim’’ is removed
from the title of the rule.
• The text of the rule is replaced with
the following:
In connection with the preparation or
issuance of any audit report, a registered
public accounting firm and its
associated persons shall comply with all
applicable auditing standards adopted
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Amendments to PCAOB Standards
Auditing Standards and Interpretations
Auditing Standard No. 1, References
in Auditors’ Reports to the Standards of
the Public Company Accounting
Oversight Board 1
Auditing Standard No. 1, References
in Auditors’ Reports to the Standards of
the Public Company Accounting
Oversight Board, is superseded.
Auditing Standard No. 3, Audit
Documentation
Auditing Standard No. 3, Audit
Documentation, as amended, is
amended as follows:
a. The section number ‘‘Auditing
Standard No. 3’’ is replaced with ‘‘AS
1215.’’
b. In the references before paragraph
1, the phrase ‘‘[supersedes SAS No. 96,
Audit Documentation]’’ is deleted.
c. Paragraph numbers 1 through 21
are replaced with .01 through .21.
d. In footnote 1 to paragraph 4, the
reference to ‘‘paragraph 12’’ is replaced
with ‘‘paragraph .12.’’
e. In footnote 2 to paragraph 6, the
reference to ‘‘paragraphs 28–33 of
Auditing Standard No. 5’’ is replaced
with ‘‘paragraphs .28–.33 of AS 2201.’’
f. In paragraph 9:
• The parenthetic reference to
‘‘paragraph 15’’ is replaced with
‘‘paragraph .15.’’
• In the first bullet, the reference to
‘‘paragraph 16’’ is replaced with
‘‘paragraph .16.’’
• In the second bullet, the reference
to ‘‘AU sec. 390’’ is replaced with ‘‘AS
2901.’’
g. In footnote 2A to paragraph 12a:
• The reference to ‘‘paragraphs 12–13
of Auditing Standard No. 12’’ is
replaced with ‘‘paragraphs .12–.13 of AS
2110.’’
• The reference to ‘‘AU sec. 316’’ is
replaced with ‘‘AS 2401.’’
h. In footnote 2B to paragraph 12c, the
reference to ‘‘paragraphs 10–23 of
Auditing Standard No. 14’’ is replaced
with ‘‘paragraphs .10–.23 of AS 2810.’’
i. In footnote 2C to paragraph 12f:
• The reference to ‘‘paragraph 74 of
Auditing Standard No. 12, Identifying
and Assessing Risks of Material
Misstatement,’’ is replaced with ‘‘AS
2110.74.’’
• The reference to ‘‘paragraph 36 of
Auditing Standard No. 14, Evaluating
1 The captions in this section refer to the numbers
and titles of existing PCAOB auditing standards and
interpretations.
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Audit Results’’ is replaced with ‘‘AS
2810.36.’’
j. In the second sentence of paragraph
17, the reference to ‘‘AU sec. 711,
Filings Under Federal Securities
Statutes’’ is replaced with ‘‘AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
k. In the first sentence of paragraph
18, the reference to ‘‘paragraphs 4–13’’
is replaced with ‘‘paragraphs .04–.13.’’
l. In paragraph 19a, the reference to
‘‘paragraphs 12 and 13’’ is replaced with
‘‘paragraphs .12 and .13.’’
m. In paragraph 19c, the reference to
‘‘paragraph 8’’ is replaced with
‘‘paragraph .08.’’
n. In the last sentence of paragraph
19, the reference to ‘‘AU sec. 543, Part
of Audit Performed by Other
Independent Auditors,’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
by Other Independent Auditors.’’
Auditing Standard No. 4, Reporting on
Whether a Previously Reported Material
Weakness Continues to Exist
Auditing Standard No. 4, Reporting
on Whether a Previously Reported
Material Weakness Continues to Exist,
as amended, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 4’’ is replaced with ‘‘AS
6115.’’
b. Paragraph numbers 1 through 65
are replaced with .01 through .65.
c. In Note 1 to paragraph 1, the
reference to ‘‘Auditing Standard No. 5’’
is replaced with ‘‘AS 2201.’’
d. In paragraph 2:
• In item (1), the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements,’’ is
replaced with ‘‘AS 2201.’’
• In item (2), the reference to
‘‘Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.’’
• The parenthetic reference to
‘‘paragraph 26’’ is replaced with
‘‘paragraph .26.’’
• In the note, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
e. In the last sentence of paragraph 4,
the reference to ‘‘Auditing Standard No.
5, An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements,’’
is replaced with ‘‘AS 2201.’’
f. In paragraph 7e, the reference to
‘‘paragraph 48’’ is replaced with
‘‘paragraph .48.’’
g. In paragraph 8, the reference to
‘‘paragraph 7’’ is replaced with
‘‘paragraph .07.’’
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h. In paragraph 9, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
i. In paragraph 10:
• In the first sentence, the reference
to ‘‘Paragraph 5 of Auditing Standard
No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements,’’
is replaced with ‘‘AS 2201.05.’’
• In the first sentence of the note, the
reference to ‘‘Auditing Standard No. 5,
An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements,’’
is replaced with ‘‘AS 2201.’’
j. In paragraph 11, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
k. In footnote 2 to paragraph 13, the
reference to ‘‘paragraph 42 of Auditing
Standard No. 5, An Audit of Internal
Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements’’ is replaced with ‘‘AS
2201.42.’’
l. In the last sentence of the note to
paragraph 17, the reference to ‘‘Auditing
Standard No. 5, An Audit of Internal
Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements’’ is replaced with ‘‘AS
2201.’’
m. In Note 2 to paragraph 18, the
reference to ‘‘Auditing Standard No. 5,
An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements’’
is replaced with ‘‘AS 2201.’’
n. In the first sentence of paragraph
23, the reference to ‘‘paragraph 20 of
Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.20.’’
o. In the last sentence of paragraph 24,
the reference to ‘‘paragraph 9 of
Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.09.’’
p. In paragraph 25:
• In the last sentence, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements,’’ is
replaced with ‘‘AS 2201.’’
• In the note:
• Each reference to ‘‘Auditing
Standard No. 5, An Audit of Internal
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Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements,’’ is replaced with ‘‘AS
2201.’’
• In the second sentence, the
reference to ‘‘paragraphs 26a–b and 27’’
is replaced with ‘‘paragraphs .26a–b and
.27.’’
• In the last sentence, the reference to
‘‘paragraphs 26 and 27’’ is replaced with
‘‘paragraphs .26 and .27.’’
q. In paragraph 26:
• In the first sentence, the reference
to ‘‘paragraph 5’’ is replaced with
‘‘paragraph .05.’’
• In footnote 3, the reference to
‘‘paragraph .02 of AU sec. 315,
Communications Between Predecessor
and Successor Auditors’’ is replaced
with ‘‘paragraph .02 of AS 2610, Initial
Audits—Communications Between
Predecessor and Successor Auditors.’’
r. In the first sentence of paragraph
26a, the reference to ‘‘paragraphs 22–27
of Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.22–.27.’’
s. In paragraph 26b, the reference to
‘‘paragraphs 34–38 of Auditing Standard
No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements,’’
is replaced with ‘‘AS 2201.34–.38.’’
t. In the first sentence of paragraph
26c, the reference to ‘‘AU sec. 315,
Communications Between Predecessor
and Successor Auditors’’ is replaced
with ‘‘AS 2610.’’
u. In paragraph 27:
• In the first sentence, the reference
to ‘‘paragraph 26’’ is replaced with
‘‘paragraph .26.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
v. In the last sentence of paragraph 28,
the reference to ‘‘paragraph 7’’ is
replaced with ‘‘paragraph .07.’’
w. In the last sentence of paragraph
31, the reference to ‘‘paragraphs 42–43
of Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.42–.43.’’
x. In paragraph 32:
• In the first sentence, the reference
to ‘‘paragraphs 44–45 of Auditing
Standard No. 5, An Audit of Internal
Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements’’ is replaced with ‘‘AS
2201.44–.45.’’
• In the last sentence, the reference to
‘‘paragraphs 50–54 of Auditing Standard
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No. 5’’ is replaced with ‘‘AS 2201.50–
.54.’’
y. In the third sentence of paragraph
33, the reference to ‘‘paragraphs 22–24
of Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.22–.24.’’
z. In paragraph 35, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements,’’ is
replaced with ‘‘AS 2201.’’
aa. In the last sentence of paragraph
36, the reference to ‘‘paragraphs 16–19
of Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.16–.19.’’
bb. In the first sentence of paragraph
38, the reference to ‘‘Paragraphs 18–19
of Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements,’’ is
replaced with ‘‘AS 2201.18–.19.’’
cc. In the first sentence of paragraph
40, the reference to ‘‘AU sec. 543, Part
of Audit Performed by Other
Independent Auditors’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
by Other Independent Auditors.’’
dd. In the first sentence of the note to
paragraph 43, the reference to
‘‘paragraph 51’’ is replaced with
‘‘paragraph .51.’’
ee. In the second sentence of
paragraph 46, the reference to
‘‘paragraph 43’’ is replaced with
‘‘paragraph .43.’’
ff. In paragraph 47:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 3’’ is
replaced with ‘‘AS 1215.’’
• In the second sentence, the
reference to ‘‘Paragraph 14 of Auditing
Standard No. 3’’ is replaced with ‘‘AS
1215.14.’’
• In the third sentence, the reference
to ‘‘paragraph 29’’ is replaced with
‘‘paragraph .29.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 3’’ is replaced
with ‘‘AS 1215.’’
gg. In the first sentence of paragraph
48, the reference to ‘‘paragraph 7e’’ is
replaced with ‘‘paragraph .07e.’’
hh. In paragraph 50, the reference to
‘‘paragraph 48’’ is replaced with
‘‘paragraph .48.’’
ii. In the first sentence of the note to
paragraph 51b, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
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Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
jj. In the note to paragraph 51g, the
reference to ‘‘paragraph 31’’ is replaced
with ‘‘paragraph .31.’’
kk. In the first sentence of the note to
paragraph 51l, the reference to
‘‘Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.’’
ll. In the note to paragraph 51o, the
reference to ‘‘Auditing Standard No. 5,
An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements’’
is replaced with ‘‘AS 2201.’’
mm. In the first sentence of paragraph
52, the reference to ‘‘Auditing Standard
No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated
with An Audit of Financial Statements,’’
is replaced with ‘‘AS 2201.’’
nn. In paragraph 53:
• In the first sentence, the reference
to ‘‘paragraph 3’’ is replaced with
‘‘paragraph .03.’’
• In the last sentence, the reference to
‘‘paragraph 51’’ is replaced with
‘‘paragraph .51.’’
oo. In paragraph 54a, the parenthetic
reference to ‘‘paragraph 56’’ is replaced
with ‘‘paragraph .56.’’
pp. In paragraph 54b, the parenthetic
reference to ‘‘paragraphs 57 and 58’’ is
replaced with ‘‘paragraphs .57 and .58.’’
qq. In paragraph 54c, the parenthetic
reference to ‘‘paragraphs 59 through 60’’
is replaced with ‘‘paragraphs .59
through .60.’’
rr. In the first sentence of paragraph
55, the reference to ‘‘paragraph 43’’ is
replaced with ‘‘paragraph .43.’’
ss. In the third sentence of paragraph
57, the reference to ‘‘paragraph 44’’ is
replaced with ‘‘paragraph .44.’’
tt. In the first sentence of paragraph
58, the reference to ‘‘paragraph 61’’ is
replaced with ‘‘paragraph .61.’’
uu. In the first sentence of paragraph
59, the reference to ‘‘paragraph 48’’ is
replaced with ‘‘paragraph .48.’’
vv. In the note to paragraph 60, each
reference to ‘‘paragraph 59’’ is replaced
with ‘‘paragraph .59.’’
ww. In the first sentence of paragraph
62, the reference to ‘‘paragraph 55’’ is
replaced with ‘‘paragraph .55.’’
xx. In paragraph 63, the reference to
‘‘paragraphs 7 and 29–32 of AU sec.
722, Interim Financial Information’’ is
replaced with ‘‘paragraphs .07 and .29–
.32 of AS 4105, Reviews of Interim
Financial Information.’’
yy. In paragraph 64:
• In the second sentence, the
reference to ‘‘paragraph 56’’ is replaced
with ‘‘paragraph .56.’’
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• In the last sentence, the reference to
‘‘paragraphs 7 and 29–32 of AU 722,
Interim Financial Information’’ is
replaced with ‘‘AS 4105.07 and AS
4105.29–.32.’’
zz. In Appendix A, in the first
sentence of the first paragraph, the
reference to ‘‘Paragraphs 51 through 60’’
is replaced with ‘‘Paragraphs .51
through .60.’’
Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements
Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements, as
amended, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
b. Paragraph numbers 1 through 98
are replaced with .01 through .98.
c. In footnote 3 to paragraph 2, the
reference to ‘‘Paragraph A5’’ is replaced
with ‘‘Paragraph .A5.’’
d. In footnote 5 to paragraph 3, the
reference to ‘‘AU sec. 230’’ is replaced
with ‘‘AS 1015.’’
e. In paragraph 4:
• In the first sentence, the phrase
‘‘The general standards’’ is replaced
with the phrase ‘‘The standards, AS
1005, Independence, AS 1010, Training
and Proficiency of the Independent
Auditor, and AS 1015, Due Professional
Care in the Performance of Work,.’’
• Footnote 6 is deleted.
f. In paragraph 14:
• In the second sentence:
• The reference to ‘‘paragraph 22’’ is
replaced with ‘‘paragraph .22.’’
• The reference to ‘‘paragraph 39’’ is
replaced with ‘‘paragraph .39.’’
• In footnote 10, the reference to
‘‘Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.’’
• In footnote 10A to the first bullet,
the reference to ‘‘AU sec. 316’’ is
replaced with ‘‘AS 2401.’’
g. In paragraph 15, the reference to
‘‘paragraphs 65–69 of Auditing Standard
No. 12, Identifying and Assessing Risks
of Material Misstatement’’ is replaced
with ‘‘AS 2110.65–.69.’’
h. In the last sentence of paragraph
16, the reference to ‘‘AU sec. 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
i. In the third sentence of paragraph
18, the reference to ‘‘paragraphs .09
through .11 of AU sec. 322’’ is replaced
with ‘‘AS 2605.09 through .11.’’
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j. In footnote 11 to paragraph 20, the
reference to ‘‘Auditing Standard No. 11’’
is replaced with ‘‘AS 2105.’’
k. In footnote 12 to paragraph 28, the
reference to ‘‘Auditing Standard No. 15’’
is replaced with ‘‘AS 1105.’’
l. In footnote 13 to the note to
paragraph 31:
• The first parenthetic reference to
‘‘paragraph 14 of Auditing Standard No.
14’’ is replaced with ‘‘paragraph .14 of
AS 2810.’’
• The second parenthetic reference to
‘‘paragraph 61 and paragraph 5 of
Auditing Standard No. 13’’ is replaced
with ‘‘paragraph .61 and paragraph .05
of AS 2301.’’
m. In paragraph 35:
• The reference to ‘‘paragraph 34’’ is
replaced with ‘‘paragraph .34.’’
• The reference to ‘‘AU sec. 322’’ is
replaced with ‘‘AS 2605.’’
n. In the second sentence of paragraph
36:
• The reference to ‘‘paragraph 29’’ is
replaced with ‘‘paragraph .29.’’
• The reference to ‘‘Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.’’
o. In the first sentence of paragraph
37, the reference to ‘‘paragraph 34’’ is
replaced with ‘‘paragraph .34.’’
p. In paragraph 53, the parenthetic
reference to ‘‘paragraph B1’’ is replaced
with ‘‘paragraph .B1.’’
q. In the last sentence of paragraph 57,
the reference to ‘‘paragraphs 46 through
56’’ is replaced with ‘‘paragraphs .46
through .56.’’
r. In paragraph 58, the reference to
‘‘paragraph 47’’ is replaced with
‘‘paragraph .47.’’
s. In the first sentence of paragraph
59, the reference to ‘‘paragraphs 47 and
58’’ is replaced with ‘‘paragraphs .47
and .58.’’
t. In the last sentence of paragraph 60,
the reference to ‘‘paragraph B28’’ is
replaced with ‘‘paragraph .B28.’’
u. In paragraph 73, the reference to
‘‘paragraph C2’’ is replaced with
‘‘paragraph .C2.’’
v. In paragraph 74, the parenthetic
reference to ‘‘paragraphs C3 through
C7’’ is replaced with ‘‘paragraphs .C3
through .C7.’’
w. In paragraph 75g, the reference to
‘‘paragraphs 78 and 80’’ is replaced with
‘‘paragraphs .78 and .80.’’
x. In paragraph 76, the reference to
‘‘paragraph C3’’ is replaced with
‘‘paragraph .C3.’’
y. In paragraph 77, the reference to
‘‘AU sec. 333’’ is replaced with ‘‘AS
2805.’’
z. In the last sentence of paragraph 84:
• The reference to ‘‘AU sec. 316,
Consideration of Fraud in a Financial
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Statement Audit’’ is replaced with ‘‘AS
2401.’’
• The reference to ‘‘AU sec. 317’’ is
replaced with ‘‘AS 2405.’’
aa. In paragraph 85e, the reference to
‘‘paragraph A5’’ is replaced with
‘‘paragraph .A5.’’
bb. In paragraph 90:
• In the first sentence, the reference
to ‘‘Paragraphs 62 through 70’’ is
replaced with ‘‘Paragraphs .62 through
.70.’’
• In footnote 19, the reference to
‘‘paragraph C3’’ is replaced with
‘‘paragraph .C3.’’
cc. In the first bullet of paragraph 91,
the reference to ‘‘paragraph A7’’ is
replaced with ‘‘paragraph .A7.’’
dd. In the first sentence of the note to
paragraph 92, the reference to
‘‘paragraphs 88 and 91’’ is replaced with
‘‘paragraphs .88 and .91.’’
ee. In the last sentence of paragraph
93, the reference to ‘‘paragraph 75h’’ is
replaced with ‘‘paragraph .75h.’’
ff. In the second sentence of
paragraph 95, the reference to ‘‘AU sec.
560’’ is replaced with ‘‘AS 2801.’’
gg. In paragraph 96:
• The parenthetic reference to
‘‘paragraph C2’’ is replaced with
‘‘paragraph .C2.’’
• In the last sentence, the reference to
‘‘paragraph C13’’ is replaced with
‘‘paragraph .C13.’’
hh. In the last sentence of paragraph
98, the reference to ‘‘AU sec. 561’’ is
replaced with ‘‘AS 2905.’’
ii. In Appendix A, paragraph numbers
A1 through A11 are replaced with .A1
through .A11.
jj. In Appendix B, paragraph numbers
B1 through B33 are replaced with .B1
through .B33.
kk. In the first sentence of paragraph
B5, the reference to ‘‘paragraph B2’’ is
replaced with ‘‘paragraph .B2.’’
ll. In paragraph B13, the reference to
‘‘paragraph 61’’ is replaced with
‘‘paragraph .61.’’
mm. In the fifth sentence of paragraph
B16, the reference to ‘‘AU sec. 722,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
nn. In paragraph B17:
• In the first sentence, the reference
to ‘‘AU sec. 324, Service Organizations,’’
is replaced with ‘‘AS 2601,
Consideration of an Entity’s Use of a
Service Organization.’’
• In the last sentence, the reference to
‘‘AU sec. 324’’ is replaced with ‘‘AS
2601.’’
oo. In the first sentence of paragraph
B18, the reference to ‘‘AU sec. 324.03’’
is replaced with ‘‘AS 2601.03.’’
pp. In the first sentence of paragraph
B19, the reference to ‘‘AU sec. 324.07’’
is replaced with ‘‘AS 2601.07.’’
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qq. In the first sentence of paragraph
B20, the reference to ‘‘AU sec. 324.12’’
is replaced with ‘‘AS 2601.12.’’
rr. In the note to paragraph B20a:
• In the first sentence, the parenthetic
reference to ‘‘AU sec. 324.24b’’ is
replaced with ‘‘AS 2601.24b.’’
• In the second sentence, the
parenthetic reference to ‘‘AU sec.
324.24a’’ is replaced with ‘‘AS
2601.24a.’’
• In the last sentence, the reference to
‘‘AU sec. 324’’ is replaced with ‘‘AS
2601.’’
ss. In the note to paragraph B21, the
reference to ‘‘AU sec. 324.16’’ is
replaced with ‘‘AS 2601.16.’’
tt. In the last sentence of paragraph
B23, the reference to ‘‘AU sec. 543, Part
of Audit Performed by Other
Independent Auditors’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
by Other Independent Auditors.’’
uu. In Appendix C, paragraph
numbers C1 through C17 are replaced
with .C1 through .C17.
vv. In the last sentence of paragraph
C2, the reference to ‘‘paragraph 91’’ is
replaced with ‘‘paragraph .91.’’
ww. In paragraph C4, the parenthetic
reference to ‘‘paragraph 85’’ is replaced
with ‘‘paragraph .85.’’
xx. In paragraph C5:
• In the first bullet, the reference to
‘‘paragraph A7’’ is replaced with
‘‘paragraph .A7.’’
• In the last sentence of the second
bullet, the reference to ‘‘paragraph 91’’
is replaced with ‘‘paragraph .91.’’
yy. In the note to paragraph C6, the
reference to ‘‘paragraph 89’’ is replaced
with ‘‘paragraph .89.’’
zz. In the second sentence of
paragraph C8, the reference to ‘‘AU sec.
543, Part of Audit Performed by Other
Independent Auditors’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
by Other Independent Auditors.’’
aaa. In the last sentence of paragraph
C9, the reference to ‘‘AU sec. 543’’ is
replaced with ‘‘AS 1205.’’
bbb. In footnote 1 to paragraph C10,
the reference to ‘‘paragraph B15’’ is
replaced with ‘‘paragraph .B15.’’
ccc. In paragraph C12, the reference to
‘‘paragraph 72’’ is replaced with
‘‘paragraph .72.’’
ddd. In paragraph C14:
• In the last sentence, the reference to
‘‘AU sec. 317’’ is replaced with ‘‘AS
2405.’’
• In the first sentence of the note, the
reference to ‘‘paragraph C12’’ is
replaced with ‘‘paragraph .C12.’’
eee. In paragraph C15:
• In the first sentence, the reference
to ‘‘AU sec. 722, Interim Financial
Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
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• In the last sentence, the reference to
‘‘AU sec. 722’’ is replaced with ‘‘AS
4105.’’
fff. In paragraph C16:
• In the first sentence, the reference
to ‘‘AU sec. 711, Filings Under Federal
Securities Statutes’’ is replaced with
‘‘AS 4101, Responsibilities Regarding
Filings Under Federal Securities
Statutes.’’
• In the second sentence, the
reference to ‘‘AU sec. 711’’ is replaced
with ‘‘AS 4101.’’
• In the last sentence, the reference to
‘‘AU sec. 711.10’’ is replaced with ‘‘AS
4101.10.’’
Auditing Standard No. 6, Evaluating
Consistency of Financial Statements
Auditing Standard No. 6, Evaluating
Consistency of Financial Statements, as
amended, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 6’’ is replaced with ‘‘AS
2820.’’
b. In the references before paragraph
1, the phrase ‘‘Supersedes AU secs. 420
and 9420’’ is deleted.
c. Paragraph numbers 1 through 11
are replaced with .01 through .11.
d. In paragraph 8:
• In the second sentence, the
reference to ‘‘paragraph 7’’ is replaced
with ‘‘paragraph .07.’’
• Each reference to ‘‘AU sec. 508’’ is
replaced with ‘‘AS 3101.’’
• In the last sentence of the note, the
reference to ‘‘AU sec. 508’’ is replaced
with ‘‘AS 3101.’’
e. In paragraph 9, the reference to
‘‘AU sec. 508’’ is replaced with ‘‘AS
3101.’’
f. In the last sentence of paragraph 10:
• The reference to ‘‘paragraph 31’’ is
replaced with ‘‘paragraph .31.’’
• The reference to ‘‘Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.’’
• The reference to ‘‘AU sec. 508’’ is
replaced with ‘‘AS 3101.’’
g. In paragraph 11:
• In the fifth sentence, the reference
to ‘‘paragraphs 7 and 8 and AU sec.
508’’ is replaced with ‘‘paragraphs .07
and .08 and AS 3101.’’
• In the last sentence, the reference to
‘‘paragraphs 9 and 10 and AU sec. 508’’
is replaced with ‘‘paragraphs .09 and .10
and AS 3101.’’
Auditing Standard No. 7, Engagement
Quality Review
Auditing Standard No. 7, Engagement
Quality Review, as amended, is
amended as follows:
a. The section number ‘‘Auditing
Standard No. 7’’ is replaced with ‘‘AS
1220.’’
b. In the references before paragraph
1, the phrase ‘‘Supersedes SECPS
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Requirements of Membership
§ 1000.08(f).’’ is deleted.
c. Paragraph numbers 1 through 21
are replaced with .01 through .21.
d. In paragraph 1, the phrase ‘‘a
review interim financial information’’ is
replaced with ‘‘a review of interim
financial information.’’
e. In the last sentence of footnote 1 to
paragraph 2, the reference to ‘‘AU
section (‘‘sec.’’) 722, Interim Financial
Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
f. In the last sentence of paragraph 9,
the reference to ‘‘paragraphs 10 and 11’’
is replaced with ‘‘paragraphs .10 and
.11.’’
g. In footnote 4 to paragraph 10e, the
reference to ‘‘Paragraph 13 of PCAOB
Auditing Standard No. 3’’ is replaced
with ‘‘Paragraph .13 of AS 1215.’’
h. In footnote 5 to paragraph 10g:
• The reference to ‘‘AU sec. 550’’ is
replaced with ‘‘AS 2710.’’
• The reference to ‘‘AU sec. 711,
Filings Under Federal Securities
Statutes’’ is replaced with ‘‘AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
i. In the first sentence of paragraph 11,
the reference to ‘‘paragraph 10’’ is
replaced with ‘‘paragraph .10.’’
j. In footnote 6 to paragraph 12, the
reference to ‘‘AU sec. 230’’ is replaced
with ‘‘AS 1015.’’
k. In the last sentence of paragraph 14,
the reference to ‘‘paragraphs 15 and 16’’
is replaced with ‘‘paragraphs .15 and
.16.’’
l. In paragraph 15c, the reference to
‘‘paragraphs 10.d and 10.e’’ are replaced
with ‘‘paragraphs .10d and .10e.’’
m. In footnote 8 to paragraph 15e:
• The reference to ‘‘AU sec. 722.18f’’
is replaced with ‘‘AS 4105.18f.’’
• The reference to ‘‘AU sec. 711’’ is
replaced with ‘‘AS 4101.’’
n. In paragraph 15f, the reference to
‘‘paragraphs 10.h and 10.i’’ are replaced
with ‘‘paragraphs .10h and .10i.’’
o. In paragraph 16, the reference to
‘‘paragraph 15’’ is replaced with
‘‘paragraph .15.’’
p. In paragraph 21, the reference to
‘‘PCAOB Auditing Standard No. 3,
Audit Documentation,’’ is replaced with
‘‘AS 1215.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Auditing Standard No. 8, Audit Risk
Auditing Standard No. 8, Audit Risk,
is amended as follows:
a. The section number ‘‘Auditing
Standard No. 8’’ is replaced with ‘‘AS
1101.’’
b. Paragraph numbers 1 through 11
are replaced with .01 through .11.
c. In the first sentence of footnote 1
to paragraph 1, the reference to
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‘‘Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.’’
d. In paragraph 3:
• In footnote 2, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
• In footnote 3:
• The reference to ‘‘AU sec. 110’’ is
replaced with ‘‘AS 1001.’’
• The reference to ‘‘AU sec. 230’’ is
replaced with ‘‘AS 1015.’’
e. In paragraph 5:
• In the last sentence, the reference to
‘‘Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.’’
• In footnote 4, the reference to
‘‘Auditing Standard No. 15’’ is replaced
with ‘‘AS 1105.’’
• In footnote 5, the reference to
‘‘Paragraph 59 of Auditing Standard No.
12’’ is replaced with ‘‘AS 2110.59.’’
f. In paragraph 8:
• In footnote 6, the reference to
‘‘Paragraph 59.a. of Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.59a.’’
• In footnote 7, the reference to
‘‘Paragraphs 32–34 of Auditing Standard
No. 13’’ is replaced with ‘‘Paragraphs
.32–.34 of AS 2301.’’
g. In footnote 8 to paragraph 11, the
reference to ‘‘Paragraph 37 of Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.37.’’
Auditing Standard No. 9, Audit
Planning
Auditing Standard No. 9, Audit
Planning, as amended, is amended as
follows:
a. The section number ‘‘Auditing
Standard No. 9’’ is replaced with ‘‘AS
2101.’’
b. Paragraph numbers 1 through 19
are replaced with .01 through .19.
c. In the second sentence of footnote
3 to paragraph 6a, the reference to ‘‘AU
sec. 161, The Relationship of Generally
Accepted Auditing Standards to Quality
Control Standards’’ is replaced with
‘‘AS 1110, Relationship of Auditing
Standards to Quality Control
Standards.’’
d. In paragraph 6c, the reference to
‘‘Auditing Standard No. 16’’ is replaced
with ‘‘AS 1301.’’
e. In paragraph 7:
• In the second sentence, the
reference to ‘‘paragraphs 8–10’’ is
replaced with ‘‘paragraphs .08–.10.’’
• In footnote 5, the reference to
‘‘Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.’’
f. In the first sentence of footnote 7 to
paragraph 9a, the reference to ‘‘Auditing
Standard No. 16, Communications with
Audit Committees’’ is replaced with
‘‘AS 1301.’’
g. In footnote 8 to paragraph 9b, the
reference to ‘‘paragraph 6 of Auditing
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Standard No. 10’’ is replaced with
‘‘paragraph .06 of AS 1201.’’
h. In paragraph 9c:
• The reference to ‘‘paragraph 7’’ is
replaced with ‘‘paragraph .07.’’
• In footnote 9, the reference to
‘‘Paragraph 6’’ is replaced with
‘‘Paragraph .06.’’
i. In footnote 10 to paragraph 9d:
• The reference to ‘‘AU sec. 230’’ is
replaced with ‘‘AS 1015.’’
• The reference to ‘‘paragraph 16’’ is
replaced with ‘‘paragraph .16.’’
• The reference to ‘‘paragraph 5.a.’’ is
replaced with ‘‘paragraph .05a.’’
• The reference to ‘‘Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.’’
j. In footnote 11 to paragraph 10a, the
reference to ‘‘Auditing Standard No. 12’’
is replaced with ‘‘AS 2110.’’
k. In footnote 12 to paragraph 10b:
• The reference to ‘‘Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.’’
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
l. In footnote 14 to paragraph 12a, the
reference to ‘‘AU sec. 316’’ is replaced
with ‘‘AS 2401.’’
m. In footnote 15 to paragraph 12b,
the reference to ‘‘Paragraph 10 of
Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.10.’’
n. In the note to paragraph 12g:
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In footnote 17, the reference to
‘‘Paragraphs B10–B16 of Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.B10–.B16.’’
o. In paragraph 13:
• In the first sentence:
• The reference to ‘‘AU sec. 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In the last sentence:
• The reference to ‘‘AU sec. 322’’ is
replaced with ‘‘AS 2605.’’
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
p. In paragraph 14:
• In the first sentence, the reference
to ‘‘AU sec. 543, Part of Audit
Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205,
Part of the Audit Performed by Other
Independent Auditors.’’
• In the last sentence, the reference to
‘‘paragraphs 11–13’’ is replaced with
‘‘paragraphs .11–.13.’’
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• In footnote 18, the reference to
‘‘paragraphs C8–C11 of Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.C8–.C11.’’
q. In paragraph 18b, the reference to
‘‘AU sec. 315, Communications Between
Predecessor and Successor Auditors’’ is
replaced with ‘‘AS 2610, Initial
Audits—Communications Between
Predecessor and Successor Auditors.’’
r. In footnote 19 to paragraph 19, the
reference to ‘‘paragraph 3 of Auditing
Standard No. 6’’ is replaced with
‘‘paragraph .03 of AS 2820.’’
s. In Appendix A, paragraph numbers
A1 through A2 are replaced with .A1
through .A2.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Auditing Standard No. 10, Supervision
of the Audit Engagement
Auditing Standard No. 10,
Supervision of the Audit Engagement, is
amended as follows:
a. The section number ‘‘Auditing
Standard No. 10’’ is replaced with ‘‘AS
1201.’’
b. Paragraph numbers 1 through 6 are
replaced with .01 through .06.
c. In paragraph 3:
• In the last sentence, the reference to
‘‘Paragraphs 5–6’’ is replaced with
‘‘Paragraphs .05–.06.’’
• In footnote 2, the reference to ‘‘AU
sec. 336’’ is replaced with ‘‘AS 1210.’’
• In footnote 3, the reference to ‘‘AU
sec. 543, Part of Audit Performed by
Other Independent Auditors’’ is
replaced with ‘‘AS 1205, Part of the
Audit Performed by Other Independent
Auditors.’’
• In footnote 4, the reference to ‘‘AU
sec. 322, The Auditor’s Consideration of
the Internal Audit Function in an Audit
of Financial Statements’’ is replaced
with ‘‘AS 2605, Consideration of the
Internal Audit Function.’’
• In footnote 5, the reference to
‘‘Paragraphs 16–19 of Auditing Standard
No. 5’’ is replaced with ‘‘Paragraphs
.16–.19 of AS 2201.’’
• In footnote 6, the reference to ‘‘AU
sec. 230’’ is replaced with ‘‘AS 1015.’’
d. In paragraph 5a:
• In footnote 7 to paragraph 5a:
• The reference to ‘‘AU sec. 230.06’’
is replaced with ‘‘AS 1015.06.’’
• The reference to ‘‘paragraph 5 of
Auditing Standard No. 13’’ is replaced
with ‘‘paragraph .05 of AS 2301.’’
• In footnote 8 to item (3), the
reference to ‘‘Auditing Standard No. 12’’
is replaced with ‘‘AS 2110.’’
e. In footnote 9 to paragraph 5b:
• The reference to ‘‘paragraph 15 of
Auditing Standard No. 9’’ is replaced
with ‘‘paragraph .15 of AS 2101.’’
• The reference to ‘‘paragraph 74 of
Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.74.’’
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• The reference to ‘‘paragraphs 20–23
and 35–36 of Auditing Standard No. 14’’
is replaced with ‘‘paragraphs .20–.23
and .35–.36 of AS 2810.’’
f. In the note to paragraph 5, the
reference to ‘‘AU sec. 230’’ is replaced
with ‘‘AS 1015.’’
g. In footnote 10 to item (3) of
paragraph 5c:
• The reference to ‘‘Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.’’
• The reference to ‘‘Auditing
Standard No. 3’’ is replaced with ‘‘AS
1215.’’
h. In footnote 11 to paragraph 6a, the
reference to ‘‘Paragraph 10 of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.10.’’
i. In footnote 12 to paragraph 6d:
• The reference to ‘‘paragraph 5.a. of
Auditing Standard No. 13’’ is replaced
with ‘‘AS 2301.05a.’’
• The reference to ‘‘AU sec. 230.06’’
is replaced with ‘‘AS 1015.06.’’
j. In the note to paragraph 6:
• The reference to ‘‘paragraph 5 of
Auditing Standard No. 13, The
Auditor’s Responses to the Risks of
Material Misstatement,’’ is replaced
with ‘‘AS 2301.05.’’
• In footnote 13, the reference to
‘‘Paragraph 5.b. of Auditing Standard
No. 13’’ is replaced with ‘‘AS
2301.05b.’’
k. In Appendix A, paragraph numbers
A1 and A2 are replaced with .A1 and
.A2.
Auditing Standard No. 11,
Consideration of Materiality in Planning
and Performing an Audit
Auditing Standard No. 11,
Consideration of Materiality in Planning
and Performing an Audit, is amended as
follows:
a. The section number ‘‘Auditing
Standard No. 11’’ is replaced with ‘‘AS
2105.’’
b. Paragraph numbers 1 through 12
are replaced with .01 through .12.
c. In footnote 1 to paragraph 1, the
reference to ‘‘Auditing Standard No. 14’’
is replaced with ‘‘AS 2810.’’
d. In paragraph 3:
• In the third sentence, the reference
to ‘‘Auditing Standard No. 14’’ is
replaced with ‘‘AS 2810.’’
• In footnote 4, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
e. In paragraph 4:
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In footnote 5, the reference to
‘‘Paragraph 20 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.20.’’
f. In paragraph 12:
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• In the note, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
• In footnote 6 to the note, the
reference to ‘‘Paragraph 17 of Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.17.’’
Auditing Standard No. 12, Identifying
and Assessing Risks of Material
Misstatement
Auditing Standard No. 12, Identifying
and Assessing Risks of Material
Misstatement, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.’’
b. Paragraph numbers 1 through 74
are replaced with .01 through .74.
c. In footnote 1 to paragraph 1, the
reference to ‘‘Paragraphs 5–8 of
Auditing Standard No. 8’’ is replaced
with ‘‘Paragraphs .05–.08 of AS 1101.’’
d. In paragraph 2:
• In the first sentence, the reference
to ‘‘Paragraphs 4–58’’ is replaced with
‘‘Paragraphs .04–.58.’’
• In the last sentence, the reference to
‘‘Paragraphs 59–73’’ is replaced with
‘‘Paragraphs .59–.73.’’
e. In paragraph 4:
• In footnote 3:
• In the first sentence, the reference
to ‘‘AU sec. 316’’ is replaced with ‘‘AS
2401.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 18’’ is replaced
with ‘‘AS 2410.’’
• In footnote 4, the reference to
‘‘Auditing Standard No. 15’’ is replaced
with ‘‘AS 1105.’’
f. In paragraph 5a, the parenthetic
reference to ‘‘paragraphs 7–17’’ is
replaced with ‘‘paragraphs .07–.17.’’
g. In paragraph 5b, the parenthetic
reference to ‘‘paragraphs 18–40’’ is
replaced with ‘‘paragraphs .18–.40.’’
h. In paragraph 5c, the parenthetic
reference to ‘‘paragraphs 41–45’’ is
replaced with ‘‘paragraphs .41–.45.’’
i. In paragraph 5d, the parenthetic
reference to ‘‘paragraphs 46–48’’ is
replaced with ‘‘paragraphs .46–.48.’’
j. In paragraph 5e, the parenthetic
reference to ‘‘paragraphs 49–53’’ is
replaced with ‘‘paragraphs .49–.53.’’
k. In paragraph 5f:
• The parenthetic reference to
‘‘paragraphs 54–58’’ is replaced with
‘‘paragraphs .54–.58.’’
• In footnote 5 to the note, the
reference to ‘‘Paragraph 11 of Auditing
Standard No. 15’’ is replaced with ‘‘AS
1105.11.’’
l. In footnote 7 to paragraph 9, the
reference to ‘‘AU sec. 317’’ is replaced
with ‘‘AS 2405.’’
m. In paragraph 11:
• The reference to ‘‘paragraph 7’’ is
replaced with ‘‘paragraph .07.’’
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• In the third bullet, the reference to
‘‘paragraph 10A’’ is replaced with
‘‘paragraph .10A.’’
n. In footnote 7A to the fifth bullet in
paragraph 13, the reference to ‘‘AU secs.
316.66–.67A’’ is replaced with ‘‘AS
2401.66–.67A.’’
o. In footnote 8 to paragraph 18, the
reference to ‘‘Paragraphs 21–22’’ is
replaced with ‘‘Paragraphs .21–.22.’’
p. In paragraph 19:
• In footnote 9, the reference to
‘‘Paragraph 13 of Auditing Standard No.
5’’ is replaced with ‘‘Paragraph .13 of
AS 2201.’’
• In footnote 10 to the note, the
reference to ‘‘Paragraph 10 of Auditing
Standard No. 15’’ is replaced with ‘‘AS
1105.10.’’
q. In paragraph 20:
• In the last sentence of the first note,
the reference to ‘‘paragraphs 37–38’’ is
replaced with ‘‘paragraphs .37–.38.’’
• In the last sentence of the second
note, the reference to ‘‘paragraphs 37–
38’’ is replaced with ‘‘paragraphs .37–
.38.’’
r. In paragraph 22:
• In the third sentence, the reference
to ‘‘Auditing Standard No. 5’’ is
replaced with ‘‘AS 2201.’’
• In the last sentence, the reference to
‘‘paragraphs 23–36’’ is replaced with
‘‘paragraphs .23–.36.’’
• In footnote 13, the reference to
‘‘Paragraph 5 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.05.’’
s. In the note to paragraph 24:
• In the first sentence, the reference
to ‘‘paragraph 23’’ is replaced with
‘‘paragraph .23.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.’’
• In footnote 14, the reference to
‘‘Paragraph 25 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.25.’’
t. In paragraph 25:
• The reference to ‘‘paragraphs 65–
66’’ is replaced with ‘‘paragraphs .65–
.66.’’
• In footnote 15, the reference to
‘‘Paragraph A3 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.A3.’’
u. In paragraph 32:
• The reference to ‘‘paragraph 28.e.’’
is replaced with ‘‘paragraph .28e.’’
• In footnote 17, the reference to
‘‘Paragraphs 12–13’’ is replaced with
‘‘Paragraphs .12–.13.’’
v. In paragraph 34:
• In the first sentence, the reference
to ‘‘paragraph 18’’ is replaced with
‘‘paragraph .18.’’
• In footnote 18, the reference to
‘‘paragraph B5’’ is replaced with
‘‘paragraph .B5.’’
w. In footnote 19 to paragraph 35, the
reference to ‘‘AU sec. 322, The Auditor’s
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Consideration of the Internal Audit
Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
x. In paragraph 37:
• In the first sentence, the reference
to ‘‘paragraph 20’’ is replaced with
‘‘paragraph .20.’’
• In the first and last sentences of the
note, the references to ‘‘Auditing
Standard No. 5’’ are replaced with ‘‘AS
2201.’’
• In footnote 20 to the note, the
reference to ‘‘paragraphs 34–38 of
Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.34–.38.’’
y. In paragraph 39:
• In the first sentence, the reference
to ‘‘paragraph 18’’ is replaced with
‘‘paragraph .18.’’
• In footnote 21, the reference to
‘‘Paragraphs 16–35 of Auditing Standard
No. 13’’ is replaced with ‘‘Paragraphs
.16–.35 of AS 2301.’’
• In footnote 22, the reference to
‘‘Paragraph B1 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.B1.’’
z. In paragraph 40:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 5’’ is
replaced with ‘‘AS 2201.’’
• In footnote 23, the reference to
‘‘Paragraph 22 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.22.’’
• In footnote 24, the reference to
‘‘paragraph 24 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.24.’’
aa. In the last sentence of paragraph
41, the reference to ‘‘paragraph 59’’ is
replaced with ‘‘paragraph .59.’’
bb. In paragraph 42, the reference to
‘‘paragraph 8’’ is replaced with
‘‘paragraph .08.’’
cc. In paragraph 44, the reference to
‘‘AU sec. 722, Interim Financial
Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
dd. In footnote 26 to paragraph 45, the
reference to ‘‘Paragraph 7 of Auditing
Standard No. 9’’ is replaced with
‘‘Paragraph .07 of AS 2101.’’
ee. In the last sentence of paragraph
47, the reference to ‘‘AU sec. 722’’ is
replaced with ‘‘AS 4105.’’
ff. In paragraph 49:
• In footnote 28 to the first note to
paragraph 49, the reference to
‘‘Paragraphs 52–53’’ is replaced with
‘‘Paragraphs .52–.53.’’
• In the second note, the reference to
‘‘paragraph 67’’ is replaced with
‘‘paragraph .67.’’
gg. In footnote 29 to paragraph 51, the
reference to ‘‘paragraph 29 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraph .29 of AS 2810.’’
hh. In paragraph 53:
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• In the first bullet, the reference to
‘‘AU sec. 316’’ is replaced with ‘‘AS
2401.’’
• In footnote 30 to the first bullet, the
reference to ‘‘AU sec. 316.13’’ is
replaced with ‘‘AS 2401.13.’’
• In the second bullet, the parenthetic
reference to ‘‘Auditing Standard No. 14’’
is replaced with ‘‘AS 2810.’’
• In footnote 31 to the third bullet,
the reference to ‘‘Paragraphs 20–23 of
Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.20–.23.’’
ii. In footnote 31A to Item a(8) of
paragraph 56, the reference to ‘‘AU secs.
316.66–67A’’ is replaced with ‘‘AS
2401.66–.67A.’’
jj. In paragraph 59a:
• The parenthetic reference to
‘‘paragraphs 4–58’’ is replaced with
‘‘paragraphs .04–.58.’’
• In the note, the reference to
‘‘paragraphs 65–69’’ is replaced with
‘‘paragraphs .65–.69.’’
kk. In footnote 32 to the note to
paragraph 59d, the reference to
‘‘Paragraphs 16–35 of Auditing Standard
No. 13’’ is replaced with ‘‘AS 2301.16–
.35.’’
ll. In paragraph 59e:
• The parenthetic reference to
‘‘paragraphs 60–64’’ is replaced with
‘‘paragraphs .60–.64.’’
• In footnote 33, the reference to
‘‘Paragraph A10 of Auditing Standard
No. 5’’ is replaced with ‘‘AS 2201.A10.’’
• In footnote 34, the reference to
‘‘Paragraph A9 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.A9.’’
mm. In paragraph 59f, the parenthetic
reference to ‘‘paragraphs 70–71’’ is
replaced with ‘‘paragraphs .70–.71.’’
nn. In the first sentence of paragraph
60, the reference to ‘‘paragraph 59.e.’’ is
replaced with ‘‘paragraph .59e.’’
oo. In footnote 35 to the note to
paragraph 62:
• In the second sentence, the
reference to ‘‘paragraphs 11, 14, and 25
of Auditing Standard No.14’’ is replaced
with ‘‘AS 2810.11, .14, and .25.’’
• In the last sentence:
• The reference to ‘‘paragraph 61 of
Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.61.’’
• The reference to ‘‘paragraph 5.c. of
Auditing Standard No. 13’’ is replaced
with ‘‘AS 2301.5c.’’
pp. In paragraph 65:
• In the fourth sentence, the reference
to ‘‘AU sec. 316.85’’ is replaced with
‘‘AS 2401.85.’’
• In the first sentence of the note, the
reference to ‘‘AU sec. 316.85’’ is
replaced with ‘‘AS 2401.85.’’
qq. In paragraph 67, the reference to
‘‘paragraph 65’’ is replaced with
‘‘paragraph .65.’’
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rr. In paragraph 71a, the reference to
‘‘paragraph 60’’ is replaced with
‘‘paragraph .60.’’
ss. In paragraph 72:
• The reference to ‘‘paragraphs 18–
40’’ is replaced with ‘‘paragraphs .18–
.40.’’
• In footnote 36, the reference to
‘‘Auditing Standard No. 13’’ is replaced
with ‘‘AS 2301.’’
tt. In footnote 37 to paragraph 73:
• The phrase ‘‘AU sec. 316.88 and’’ is
deleted.
• The reference to ‘‘paragraph 14 of
Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.14,’’ and ‘‘present’’ is
replaced with ‘‘presents.’’
uu. In paragraph 73A, the reference to
‘‘paragraphs 18–40 and 72–73’’ is
replaced with ‘‘paragraphs .18–.40 and
.72–.73.’’
vv. In footnote 38 to paragraph 74, the
reference to ‘‘paragraph 46 of Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.46.’’
ww. In Appendix A, paragraph
numbers A1 through A5 are replaced
with .A1 through .A5.
xx. In Appendix B, paragraph
numbers B1 through B6 are replaced
with .B1 through .B6.
yy. In paragraph B1:
• In footnote 1, the reference to ‘‘AU
sec. 324, Service Organizations’’ is
replaced with ‘‘AS 2601, Consideration
of an Entity’s Use of a Service
Organization.’’
• In footnote 2, the reference to
‘‘paragraphs 16–17 of Auditing Standard
No. 9’’ is replaced with ‘‘paragraphs
.16–.17 of AS 2101.’’
Auditing Standard No. 13, The
Auditor’s Responses to the Risks of
Material Misstatement
Auditing Standard No. 13, The
Auditor’s Responses to the Risks of
Material Misstatement, is amended as
follows:
a. The section number ‘‘Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.’’
b. Paragraph numbers 1 through 47
are replaced with .01 through .47.
c. In paragraph 3, the reference to
‘‘Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.’’
d. In paragraph 4a, the reference to
‘‘paragraphs 5–7’’ is replaced with
‘‘paragraphs .05–.07.’’
e. In paragraph 4b, the reference to
‘‘paragraphs 8–46’’ is replaced with
‘‘paragraphs .08–.46.’’
f. In footnote 1 to paragraph 5a, the
reference to ‘‘AU sec. 230’’ is replaced
with ‘‘AS 1015.’’
g. In paragraph 5b, the parenthetic
reference to ‘‘paragraphs 5–6 of
Auditing Standard No. 10’’ is replaced
with ‘‘paragraphs .05–.06 of AS 1201.’’
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h. In footnote 2 to item (5) of
paragraph 5c, the reference to
‘‘paragraphs 61 and B13 of Auditing
Standard No. 5’’ is replaced with
‘‘paragraphs .61 and .B13 of AS 2201.’’
i. In footnote 3 to paragraph 5d:
• In the first sentence, the reference
to ‘‘Paragraphs 12–13 of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.12–.13.’’
• In the last sentence:
• The reference to ‘‘AU sec. 316’’ is
replaced with ‘‘AS 2401.’’
• The reference to ‘‘AU sec. 411, The
Meaning of Present Fairly in Conformity
With Generally Accepted Accounting
Principles’’ is replaced with ‘‘AS 2815,
The Meaning of ‘Present Fairly in
Conformity with Generally Accepted
Accounting Principles.’ ’’
j. In footnote 4 to paragraph 7, the
reference to ‘‘AU secs. 230.07–.09’’ is
replaced with ‘‘AS 1015.07–.09.’’
k. In footnote 5 to paragraph 7, the
reference to ‘‘AU secs. 316.13’’ is
replaced with ‘‘AS 2401.13.’’
l. In paragraph 9c:
• In footnote 7 to item (1), the
reference to ‘‘paragraph 7.b. of Auditing
Standard No. 8’’ is replaced with
‘‘paragraph .07b of AS 1101.’’
• In the note to item (2), the reference
to ‘‘Auditing Standard No. 5’’ is
replaced with ‘‘AS 2201.’’
m. In paragraph 10:
• In the last sentence:
• The reference to ‘‘Paragraphs 16–
35’’ is replaced with ‘‘Paragraphs .16–
.35.’’
• The reference to ‘‘paragraphs 36–
46’’ is replaced with ‘‘paragraphs .36–
.46.’’
• In the first sentence of the note, the
reference to ‘‘Paragraphs 16–17’’ is
replaced with ‘‘Paragraphs .16–.17.’’
n. In paragraph 11:
• In the note, the reference to
‘‘Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.’’
• In footnote 10 to the note, the
reference to ‘‘paragraph 71 of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.71.’’
o. In paragraph 11A:
• In the first sentence, the reference
to ‘‘Paragraph 71.g. of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.71g.’’
• In the second sentence, the
reference to ‘‘AU sec. 316.66–.67A’’ is
replaced with ‘‘AS 2401.66–.67A.’’
• In the last sentence, the reference to
‘‘AU sec. 316.66–.67A’’ is replaced with
‘‘AS 2401.66–.67A.’’
p. In paragraph 12:
• In the second note, the reference to
‘‘Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.’’
• In footnote 11 to the second note,
the reference to ‘‘Paragraphs 14–15 of
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Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.14–.15.’’
q. In the last sentence of paragraph 13,
the reference to ‘‘paragraphs 16–17’’ is
replaced with ‘‘paragraphs .16–.17.’’
r. In the note to paragraph 14, the
reference to ‘‘AU secs. 316.54–.67’’ is
replaced with ‘‘AS 2401.54–.67.’’
s. In paragraph 15, the reference to
‘‘AU sec. 316’’ is replaced with ‘‘AS
2401.’’
t. In paragraph 15a, the parenthetic
reference to ‘‘AU secs. 316.58–.62’’ is
replaced with ‘‘AS 2401.58–.62.’’
u. In paragraph 15b, the parenthetic
reference to ‘‘AU secs. 316.63–.65’’ is
replaced with ‘‘AS 2401.63–.65.’’
v. In paragraph 15c, the parenthetic
reference to ‘‘AU secs. 316.66–.67A’’ is
replaced with ‘‘AS 2401.66–.67A.’’
w. In footnote 14 to paragraph 17:
• The reference to ‘‘Paragraph 10 of
Auditing Standard No. 15’’ is replaced
with ‘‘Paragraph .10 of AS 1105.’’
• The reference to ‘‘AU sec. 329’’ is
replaced with ‘‘AS 2305.’’
x. In footnote 15 to paragraph 20, the
reference to ‘‘Paragraphs 37–38 of
Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.37–.38.’’
y. In the note to paragraph 27, the
reference to ‘‘AU sec. 350’’ is replaced
with ‘‘AS 2315.’’
z. In the last sentence of paragraph 28,
the reference to ‘‘Paragraph 16’’ is
replaced with ‘‘Paragraph .16.’’
aa. In the last sentence of footnote 16
to the ninth bullet of paragraph 31, the
reference to ‘‘paragraph B28 of Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.B28.’’
bb. In the note to paragraph 34:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 5’’ is
replaced with ‘‘AS 2201.’’
• In the last sentence, the reference to
‘‘AU sec. 325’’ is replaced with ‘‘AS
1305.’’
cc. In paragraph 35:
• Each reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In footnote 17, the reference to
‘‘Paragraph B1 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.B1.’’
dd. In paragraph 38:
• In footnote 18, the reference to
‘‘Paragraph A5 of Auditing Standard No.
5’’ is replaced with ‘‘AS 2201.A5.’’
• In footnote 19, the reference to ‘‘AU
sec. 328’’ is replaced with ‘‘AS 2502.’’
ee. In the note to paragraph 39, the
reference to ‘‘Auditing Standard No. 15’’
is replaced with ‘‘AS 1105.’’
ff. In paragraph 40, the reference to
‘‘paragraph 9.b.’’ is replaced with
‘‘paragraph .09b.’’
gg. In the note to paragraph 41b, the
reference to ‘‘AU secs. 316.58–.62’’ is
replaced with ‘‘AS 2401.58–.62.’’
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hh. In item (1) of paragraph 44a, the
reference to ‘‘paragraphs 32–34’’ is
replaced with ‘‘paragraphs .32–.34.’’
ii. In footnote 20 to paragraph 47, the
reference to ‘‘Paragraph .44 of AU sec.
350’’ is replaced with ‘‘AS 2315.44.’’
jj. In Appendix A, paragraph numbers
A1 through A3 are replaced with .A1
through .A3.
Auditing Standard No. 14, Evaluating
Audit Results
Auditing Standard No. 14, Evaluating
Audit Results, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.’’
b. Paragraph numbers 1 through 37
are replaced with .01 through .37.
c. In footnote 3 to paragraph 6b:
• The reference to ‘‘Paragraphs 46–48
of Auditing Standard No. 12’’ is
replaced with ‘‘Paragraphs .46–.48 of AS
2110.’’
• The reference to ‘‘AU sec. 329’’ is
replaced with ‘‘AS 2305.’’
d. In the note to paragraph 6, the
reference to ‘‘paragraph 36’’ is replaced
with ‘‘paragraph .36.’’
e. In footnote 4 to paragraph 7, the
reference to ‘‘Paragraph 47 of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.47.’’
f. In the first sentence of paragraph 9,
the reference to ‘‘paragraph 6.b.’’ is
replaced with ‘‘paragraph .06b.’’
g. In the second sentence of the note
to paragraph 10, the reference to
‘‘Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.’’
h. In paragraph 12:
• In the last sentence:
• The reference to ‘‘paragraph 13’’ is
replaced with ‘‘paragraph .13.’’
• The reference to ‘‘AU sec. 350’’ is
replaced with ‘‘AS 2315.’’
• In footnote 5, the reference to ‘‘AU
sec. 350.26’’ is replaced with ‘‘AS
2315.26.’’
i. In the last sentence of the note to
paragraph 13, the reference to
‘‘Paragraph 27’’ is replaced with
‘‘Paragraph .27.’’
j. In footnote 6 to paragraph 14b, the
reference to ‘‘Auditing Standard No. 11’’
is replaced with ‘‘AS 2105.’’
k. In paragraph 17:
• In footnote 7:
• In the first sentence, the reference
to ‘‘AU sec. 508’’ is replaced with ‘‘AS
3101.’’
• In the last sentence, the reference to
‘‘AU sec. 508.35’’ is replaced with ‘‘AS
3101.35.’’
• In footnote 11 to the second note,
the reference to ‘‘AU sec. 317’’ is
replaced with ‘‘AS 2405.’’
• In the third note, the reference to
‘‘Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.’’
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• In footnote 12 to the third note, the
reference to ‘‘Paragraphs 11–12 of
Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.11–.12.’’
l. In paragraph 18, the reference to
‘‘paragraph 17’’ is replaced with
‘‘paragraph .17.’’
m. In the last sentence of paragraph
19, the reference to ‘‘paragraph 36’’ is
replaced with ‘‘paragraph .36.’’
n. In the last sentence of paragraph
20, the reference to ‘‘AU sec. 316’’ is
replaced with ‘‘AS 2401.’’
o. In footnote 14 to paragraph 20, the
reference to ‘‘AU sec. 316.05’’ is
replaced with ‘‘AS 2401.05.’’
p. In paragraph 23, the reference to
‘‘AU secs. 316.79–.82A, AU sec. 317’’ is
replaced with ‘‘AS 2401.79–.82A, AS
2405.’’
q. In the note to paragraph 25a, the
reference to ‘‘paragraph 15’’ is replaced
with ‘‘paragraph .15.’’
r. In footnote 15 to paragraph 25c, the
reference to ‘‘Paragraph 5.d. of Auditing
Standard No. 13’’ is replaced with
‘‘Paragraph .05d of AS 2301.’’
s. In footnote 16 to paragraph 25d, the
reference to ‘‘Paragraph 27’’ is replaced
with ‘‘Paragraph .27.’’
t. In the note to paragraph 27, the
reference to ‘‘AU secs. 316.64–.65’’ is
replaced with ‘‘AS 2401.64–.65.’’
u. In footnote 17 to paragraph 28:
• The first parenthetic reference to
‘‘paragraph 9’’ is replaced with
‘‘paragraph .09.’’
• The second parenthetic reference to
‘‘paragraphs 20–23’’ is replaced with
‘‘paragraphs .20–.23.’’
• The third parenthetic reference to
‘‘paragraphs 24–27’’ is replaced with
‘‘paragraphs .24–.27.’’
v. In the note to paragraph 29, the
parenthetic reference to ‘‘paragraphs
49–51 of Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.49–.51.’’
w. In the first note to paragraph 30:
• In the first sentence, the reference
to ‘‘AU sec. 411, The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’ is
replaced with ‘‘AS 2815, The Meaning
of ’Present Fairly in Conformity with
Generally Accepted Accounting
Principles.’ ’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 6’’ is replaced
with ‘‘AS 2820.’’
x. In paragraph 31:
• In the note, the reference to ‘‘AU
sec. 508’’ is replaced with ‘‘AS 3101.’’
• In footnote 18 to the note, the
reference to ‘‘AU secs. 508.41–.44’’ is
replaced with ‘‘AS 3101.41–.44.’’
y. In paragraph 32:
• The reference to ‘‘Auditing
Standard No. 8’’ is replaced with ‘‘AS
1101.’’
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• In footnote 19, the reference to
‘‘Paragraph 3 of Auditing Standard No.
8’’ is replaced with ‘‘AS 1101.03.’’
z. In paragraph 34a, the parenthetic
reference to ‘‘paragraphs 14 and 17–19’’
is replaced with ‘‘paragraphs .14 and
.17–.19.’’
aa. In paragraph 34b, the parenthetic
reference to ‘‘paragraphs 20–23 and 28–
29’’ is replaced with ‘‘paragraphs .20–
.23 and .28–.29.’’
bb. In paragraph 34c, the parenthetic
reference to ‘‘paragraph 36’’ is replaced
with ‘‘paragraph .36.’’
cc. In footnote 20 to paragraph 34e,
the reference to ‘‘Paragraphs 7–9 of
Auditing Standard No. 15’’ is replaced
with ‘‘Paragraphs .07–.09 of AS 1105.’’
dd. In paragraph 35:
• In the last sentence, the reference to
‘‘AU sec. 508’’ is replaced with ‘‘AS
3101.’’
• In footnote 21, the reference to ‘‘AU
sec 508.22–.34’’ is replaced with ‘‘AS
3101.22–.34.’’
ee. In the note to paragraph 36:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.’’
• In footnote 22, the reference to
‘‘Paragraph 74 of Auditing Standard
No.12’’ is replaced with ‘‘AS 2110.74.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 13’’ is replaced
with ‘‘AS 2301.’’
• In footnote 23, the reference to
‘‘Paragraphs 32–34 of Auditing Standard
No. 13’’ is replaced with ‘‘AS 2301.32–
.34.’’
ff. In paragraph 37:
• Each reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In footnote 24:
• The reference to ‘‘Paragraphs 62–70
of Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.62–.70.’’
• The reference to ‘‘paragraphs 71–73
of Auditing Standard No. 5’’ is replaced
with ‘‘AS 2201.71–.73.’’
gg. In Appendix A, paragraph
numbers A1 through A3 are replaced
with .A1 through .A3.
hh. In footnote 2 to paragraph A2, the
reference to ‘‘AU sec. 316’’ is replaced
with ‘‘AS 2401.’’
ii. In footnote 3 to paragraph A3, the
reference to ‘‘Paragraph 10’’ is replaced
with ‘‘Paragraph .10.’’
jj. In Appendix B, paragraph numbers
B1 through B2 are replaced with .B1
through .B2.
kk. In paragraph B1:
• The reference to ‘‘Paragraph 17’’ is
replaced with ‘‘Paragraph .17.’’
• In footnote 1:
• In the first sentence, the reference
to ‘‘AU sec. 508’’ is replaced with ‘‘AS
3101.’’
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• In the last sentence, the reference to
‘‘AU sec. 508.35’’ is replaced with ‘‘AS
3101.35.’’
• In footnote 5 to the second note, the
reference to ‘‘AU sec. 317’’ is replaced
with ‘‘AS 2405.’’
ll. In the last sentence of paragraph
B2.o, the reference to ‘‘paragraph B2.l’’
is replaced with ‘‘paragraph .B2l.’’
mm. In Appendix C, paragraph
number C1 is replaced with .C1.
nn. In paragraph C1, the reference to
‘‘paragraph 28’’ is replaced with
‘‘paragraph .28.’’
oo. In footnote 1 to item (2) of
paragraph C1b, the reference to
‘‘Paragraph 9 of Auditing Standard No.
15’’ is replaced with ‘‘Paragraph .09 of
AS 1105.’’
pp. In the parenthetic reference of
footnote 2 to item (1) of paragraph C1c:
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• The reference to ‘‘AU sec. 508’’ is
replaced with ‘‘AS 3101.’’
Auditing Standard No. 15, Audit
Evidence
Auditing Standard No. 15, Audit
Evidence, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 15’’ is replaced with ‘‘AS
1105.’’
b. Paragraph numbers 1 through 29
are replaced with .01 through .29.
c. In footnote 1 to paragraph 3:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 14’’ is
replaced with ‘‘AS 2810.’’
• In the second sentence, the
reference to ‘‘Auditing Standard No. 3’’
is replaced with ‘‘AS 1215.’’
d. In footnote 2 to the first bullet of
paragraph 5, the reference to ‘‘Paragraph
A5 of Auditing Standard No. 12’’ is
replaced with ‘‘Paragraph .A5 of AS
2110.’’
e. In footnote 3 to paragraph 10:
• In the first sentence, the reference
to ‘‘AU sec. 336’’ is replaced with ‘‘AS
1210.’’
• In the last sentence:
• The reference to ‘‘AU sec. 324,
Service Organizations’’ is replaced with
‘‘AS 2601, Consideration of an Entity’s
Use of a Service Organization.’’
• The reference to ‘‘Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
f. In footnote 5 to paragraph 12, the
reference to ‘‘paragraph 28 of Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.28.’’
g. In footnote 6 to paragraph 13a, the
reference to ‘‘Auditing Standard No.12’’
is replaced with ‘‘AS 2110.’’
h. In footnote 7 to paragraph 13b, the
reference to ‘‘Auditing Standard No. 13’’
is replaced with ‘‘AS 2301.’’
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i. In the first sentence of paragraph 14,
the reference to ‘‘Paragraphs 15–21’’ is
replaced with ‘‘Paragraphs .15–.21.’’
j. In footnote 8 to paragraph 16, the
reference to ‘‘AU sec. 331, Inventories’’
is replaced with ‘‘AS 2510, Auditing
Inventories.’’
k. In footnote 9 to paragraph 17, the
reference to ‘‘AU sec. 333’’ is replaced
with ‘‘AS 2805.’’
l. In footnote 10 to paragraph 18, the
reference to ‘‘AU sec. 330’’ is replaced
with ‘‘AS 2310.’’
m. In footnote 11 to paragraph 21, the
reference to ‘‘AU sec. 329’’ is replaced
with ‘‘AS 2305.’’
n. In paragraph 27, the reference to
‘‘paragraphs 25–26’’ is replaced with
‘‘paragraphs .25–.26.’’
o. In footnote 12 to paragraph 27, the
reference to ‘‘paragraphs 12–13 and
paragraphs 17–19 of Auditing Standard
No. 14’’ is replaced with ‘‘AS 2810.12–
.13 and AS 2810.17–.19.’’
p. In footnote 13 to paragraph 28, the
reference to ‘‘AU sec. 350’’ is replaced
with ‘‘AS 2315.’’
Auditing Standard No. 16,
Communications with Audit
Committees
Auditing Standard No. 16,
Communications with Audit
Committees, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 16’’ is replaced with ‘‘AS
1301.’’
b. Paragraph numbers 1 through 26
are replaced with .01 through .26.
c. In the first sentence of footnote 5
to paragraph 8, the reference to
‘‘paragraphs 5.f. and 54–57 of Auditing
Standard No. 12’’ is replaced with
‘‘paragraphs .05f and .54–.57 of AS
2110.’’
d. In the first sentence of footnote 6
to paragraph 8, the reference to ‘‘AU sec.
317’’ is replaced with ‘‘AS 2405.’’
e. In paragraph 9:
• In footnote 7, the reference to
‘‘paragraphs 8–9 of Auditing Standard
No. 9’’ is replaced with ‘‘paragraphs
.08–.09 of AS 2101.’’
• In the first sentence of footnote 8,
the reference to ‘‘Auditing Standard No.
12’’ is replaced with ‘‘AS 2110.’’
f. In footnote 9 to paragraph 10a, the
reference to ‘‘paragraph 16 of Auditing
Standard No. 9’’ is replaced with ‘‘AS
2101.16.’’
g. In footnote 10 to paragraph 10b, the
reference to ‘‘AU sec. 322, The Auditor’s
Consideration of the Internal Audit
Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
h. In footnote 11 to paragraph 10c, the
reference to ‘‘paragraphs 16–19 of
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Auditing Standard No. 5’’ is replaced
with ‘‘paragraphs .16–.19 of AS 2201.’’
i. In footnote 12 to paragraph 10d, the
reference to ‘‘paragraphs 8–14 of
Auditing Standard No. 9’’ is replaced
with ‘‘AS 2101.08–.14.’’
j. In footnote 13 to paragraph 10e, the
reference to ‘‘AU sec. 543, Part of Audit
Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205,
Part of the Audit Performed by Other
Independent Auditors.’’
k. In footnote 14 to paragraph 11, the
reference to ‘‘paragraph 15 of Auditing
Standard No. 9’’ is replaced with ‘‘AS
2101.15.’’
l. In footnote 17 to item (1) of
paragraph 12c, the reference to ‘‘AU sec.
342’’ is replaced with ‘‘AS 2501.’’
m. In footnote 20 to item (1) of
paragraph 12d, the reference to
‘‘paragraph 71.g. of Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.71g.’’
n. In the first sentence of the note to
paragraph 12, the reference to
‘‘paragraph 12’’ is replaced with
‘‘paragraph .12.’’
o. In footnote 21 to item (1) of
paragraph 13a, the reference to
‘‘paragraphs 24–27 of Auditing Standard
No. 14’’ is replaced with ‘‘paragraphs
.24–.27 of AS 2810.’’
p. In footnote 22 to item (2) of
paragraph 13a, the reference to
‘‘paragraph 27 of Auditing Standard No.
14’’ is replaced with ‘‘AS 2810.27.’’
q. In footnote 23 to paragraph 13c, the
reference to ‘‘AU sec. 342’’ is replaced
with ‘‘AS 2501.’’
r. In footnote 24 to paragraph 13d, the
reference to ‘‘AU sec. 316’’ is replaced
with ‘‘AS 2401.’’
s. In footnote 25 to paragraph 13e:
• In the first sentence, the reference
to ‘‘paragraphs 30–31 of Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.30–.31.’’
• In the last sentence:
• The reference to ‘‘Auditing
Standard No. 18’’ is replaced with ‘‘AS
2410.’’
• The reference to ‘‘AU sec. 341, The
Auditor’s Consideration of an Entity’s
Ability to Continue as a Going Concern’’
is replaced with ‘‘AS 2415,
Consideration of an Entity’s Ability to
Continue as a Going Concern.’’
t. In footnote 27 to paragraph 14:
• In the first sentence, the reference
to ‘‘AU sec. 550’’ is replaced with ‘‘AS
2710.’’
• In the last sentence:
• The reference to ‘‘AU sec. 550’’ is
replaced with ‘‘AS 2710.’’
• The reference to ‘‘Auditing
Standard No. 17’’ is replaced with ‘‘AS
2701.’’
• The reference to ‘‘AU sec. 558’’ is
replaced with ‘‘AS 2705.’’
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• The reference to ‘‘AU sec. 711,
Filings Under Federal Securities
Statutes’’ is replaced with ‘‘AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
u. In footnote 28 to paragraph 17:
• In the first sentence, the reference
to ‘‘AU sec. 341’’ is replaced with ‘‘AS
2415.’’
• In the last sentence, the reference to
‘‘AU secs. 341.03a–c’’ is replaced with
‘‘AS 2415.03a–c.’’
v. In footnote 29 of paragraph 17a:
• The reference to ‘‘AU sec. 341.06’’
is replaced with ‘‘AS 2415.06.’’
• The reference to ‘‘AU sec 341.07’’ is
replaced with ‘‘AS 2415.07.’’
w. In footnote 30 to paragraph 17b,
the reference to ‘‘AU sec. 341.08’’ is
replaced with ‘‘AS 2415.08.’’
x. In footnote 31 to paragraph 17c:
• In the first sentence, the reference
to ‘‘AU sec. 341.12’’ is replaced with
‘‘AS 2415.12.’’
• In the last sentence, the reference to
‘‘AU sec. 341.03c’’ is replaced with ‘‘AS
2415.03c.’’
y. In footnote 32 to item (1) of
paragraph 17c, the reference to ‘‘AU sec.
341.10’’ is replaced with ‘‘AS 2415.10.’’
z. In footnote 33 to item (2) of
paragraph 17c, the reference to ‘‘AU sec.
341.12–.16’’ is replaced with ‘‘AS
2415.12–.16.’’
aa. In footnote 34 to paragraph 18, the
reference to ‘‘paragraph 20 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraph .20 of AS 2810.’’
bb. In footnote 36 to paragraph 18, the
reference to ‘‘Auditing Standard No. 14’’
is replaced with ‘‘AS 2810.’’
cc. In footnote 37 to paragraph 19, the
reference to ‘‘paragraph 10 of Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.10.’’
dd. In footnote 39 to the note to
paragraph 23, the reference to ‘‘AU sec.
508’’ is replaced with ‘‘AS 3101.’’
ee. In footnote 40 to paragraph 24:
• The reference to ‘‘AU sec. 316.79–
.81’’ is replaced with ‘‘AS 2401.79–.81.’’
• The reference to ‘‘AU sec. 317.17’’
is replaced with ‘‘AS 2405.17.’’
ff. In paragraph 25:
• Footnote 41 is deleted.
• In footnote 42, the reference to
‘‘Auditing Standard No. 3’’ is replaced
with ‘‘AS 1215.’’
• In the note, the reference to
‘‘paragraphs 12 or 18’’ is replaced with
‘‘paragraphs .12 or .18.’’
gg. In Appendix A, paragraph
numbers A1 through A4 are replaced
with .A1 through .A4.
hh. Appendix B of Auditing Standard
No. 16 is replaced with the following:
This appendix identifies other PCAOB
rules and standards related to the audit
that require communication of specific
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matters between the auditor and the
audit committee.
• AS 6115, Reporting on Whether a
Previously Reported Material Weakness
Continues to Exist, paragraphs .60, .62,
and .64
• AS 2201, An Audit of Internal
Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements, paragraphs .78–.81, .91, .C7,
and .C14
• AS 2110, Identifying and Assessing
Risks of Material Misstatement,
paragraphs .05f and .54–.57
• AS 2410, Related Parties,
paragraphs .07 and .19
• Attestation Standard No. 1,
Examination Engagements Regarding
Compliance Reports of Brokers and
Dealers, paragraphs 34 and 35
• Attestation Standard No. 2, Review
Engagements Regarding Exemption
Reports of Brokers and Dealers,
paragraph 15
• PCAOB Rule 3524, Audit
Committee Pre-approval of Certain Tax
Services
• PCAOB Rule 3525, Audit
Committee Pre-approval of Non-audit
Services Related to Internal Control
Over Financial Reporting
• PCAOB Rule 3526, Communication
with Audit Committees Concerning
Independence
• AS 2401, Consideration of Fraud in
a Financial Statement Audit, paragraphs
.79–.81
• AS 2405, Illegal Acts by Clients,
paragraphs .08, .17, and .20
• AS 1305, Communications About
Control Deficiencies in an Audit of
Financial Statements, paragraphs .04–
.07 and .09
• AS 2502, Auditing Fair Value
Measurements and Disclosures,
paragraph .50
• AS 2805, Management
Representations, paragraph .05
• AS 2710, Other Information in
Documents Containing Audited
Financial Statements, paragraphs .04
and .06
• AS 4101, Responsibilities Regarding
Filings Under Federal Securities
Statutes, paragraph .13
• AS 4105, Reviews of Interim
Financial Information, paragraphs .08–
.09, .30–.31, and .33–.36
ii. In Appendix C, paragraph numbers
C1 through C2 are replaced with .C1
through .C2.
jj. In footnote 2 to item 2b of
paragraph C1b, the reference to ‘‘AU
sec. 325’’ is replaced with ‘‘AS 1305.’’
kk. In footnote 3 to item (b) of
paragraph C2, the reference to ‘‘AU sec.
722, Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
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Auditing Standard No. 17, Auditing
Supplemental Information
Accompanying Audited Financial
Statements
Auditing Standard No. 17, Auditing
Supplemental Information
Accompanying Audited Financial
Statements, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 17’’ is replaced with ‘‘AS
2701.’’
b. Paragraph numbers 1 through 15
are replaced with .01 through .15.
c. In footnote 3 to the note to
paragraph 3b, the reference to ‘‘Auditing
Standard No. 11’’ is replaced with ‘‘AS
2105.’’
d. In footnote 6 to paragraph 7, the
reference to ‘‘paragraph 10 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraph .10 of AS 2810.’’
e. In footnote 7 to the note to
paragraph 8, the reference to ‘‘paragraph
17 of Auditing Standard No. 14’’ is
replaced with ‘‘AS 2810.17.’’
f. In footnote 8 to paragraph 12b:
• In the first sentence, the reference
to ‘‘AU sec. 561’’ is replaced with ‘‘AS
2905.’’
• In the second sentence, the
reference to ‘‘AU sec. 561’’ is replaced
with ‘‘AS 2905.’’
g. In Appendix A, paragraph numbers
A1 and A2 are replaced with .A1 and
.A2.
Auditing Standard No. 18, Related
Parties
Auditing Standard No. 18, Related
Parties, is amended as follows:
a. The section number ‘‘Auditing
Standard No. 18’’ is replaced with ‘‘AS
2410.’’
b. Paragraph numbers 1 through 19
are replaced with .01 through .19.
c. In footnote 2 to paragraph 2:
• In the first sentence, the reference
to ‘‘paragraphs 30–31 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraphs .30–.31 of AS 2810.’’
• In the last sentence, the reference to
‘‘AU sec. 411, The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’ is
replaced with ‘‘AS 2815, The Meaning
of ‘Present Fairly in Conformity with
Generally Accepted Accounting
Principles.’ ’’
d. In paragraph 3:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.’’
• In item a, the parenthetic reference
to ‘‘paragraph 4’’ is replaced with
‘‘paragraph .04.’’
• In item b, the parenthetic reference
to ‘‘paragraphs 5–7’’ is replaced with
‘‘paragraphs .05–.07.’’
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• In item c, the parenthetic reference
to ‘‘paragraphs 8–9’’ is replaced with
‘‘paragraphs .08–.09.’’
• In the second note:
• The reference to ‘‘paragraphs 4–9’’
is replaced with ‘‘paragraphs .04–.09.’’
• The reference to ‘‘Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.’’
e. In footnote 3 to paragraph 4:
• In the first sentence, the reference
to ‘‘paragraph 18 of Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.18.’’
• In the last sentence, the reference to
‘‘paragraph 20 of Auditing Standard No.
12’’ is replaced with ‘‘AS 2110.20.’’
f. In footnote 4 to paragraph 5:
• In the first sentence, the reference
to ‘‘AU sec. 333’’ is replaced with ‘‘AS
2805.’’
• In the last sentence, the reference to
‘‘paragraph 5’’ is replaced with
‘‘paragraph .05.’’
g. In paragraph 6, the reference to
‘‘paragraph 5’’ is replaced with
‘‘paragraph .05.’’
h. In footnote 7 to paragraph 7, the
reference to ‘‘Auditing Standard No. 16’’
is replaced with ‘‘AS 1301.’’
i. In footnote 8 to paragraph 8:
• In the first sentence, the reference
to ‘‘paragraph 49 of Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.49.’’
• In the last sentence, the reference to
‘‘paragraph 5 of Auditing Standard No.
10’’ is replaced with ‘‘paragraph .05 of
AS 1201.’’
j. In footnote 9 to paragraph 9, the
reference to ‘‘AU sec. 543, Part of Audit
Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205,
Part of the Audit Performed by Other
Independent Auditors.’’
k. In paragraph 10:
• In footnote 10, the reference to
‘‘paragraph 59 of Auditing Standard No.
12’’ is replaced with ‘‘AS 2110.59.’’
• In the note:
• The reference to ‘‘paragraphs 4–9’’
is replaced with ‘‘paragraphs .04–.09.’’
• The reference to ‘‘Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.’’
l. In paragraph 11:
• In footnote 11, the reference to
‘‘paragraph 3 of Auditing Standard No.
13’’ is replaced with ‘‘paragraph .03 of
AS 2301.’’
• In footnote 12:
• The reference to ‘‘Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.’’
• The reference to ‘‘paragraph 17 of
Auditing Standard No. 15’’ is replaced
with ‘‘paragraph .17 of AS 1105.’’
• In the note:
• In the first sentence, the reference
to ‘‘AU sec. 316’’ is replaced with ‘‘AS
2401.’’
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• In the last sentence, the reference to
‘‘AU sec. 316.67’’ is replaced with ‘‘AS
2401.67.’’
m. In the last sentence of the note to
paragraph 12, the reference to
‘‘paragraph 12’’ is replaced with
‘‘paragraph .12.’’
n. In footnote 16 to paragraph 15, the
reference to ‘‘paragraph 29 of Auditing
Standard No .15’’ is replaced with ‘‘AS
1105.29.’’
o. In paragraph 16:
• In footnote 17 to item b, the
reference to ‘‘AU sec. 333.04’’ is
replaced with ‘‘AS 2805.04.’’
• In item e, the reference to
‘‘paragraph 12’’ is replaced with
‘‘paragraph .12.’’
• In item f:
• In footnote 18 to item ii, the
reference to ‘‘paragraph 74 of Auditing
Standard No. 12’’ is replaced with ‘‘AS
2110.74.’’
• In the last sentence of item iii:
• The reference to ‘‘AU secs. 316.79–
.82’’ is replaced with ‘‘AS 2401.79–.82.’’
• The reference to ‘‘AU sec. 317’’ is
replaced with ‘‘AS 2405.’’
p. In footnote 19 to paragraph 17, the
reference to ‘‘paragraphs 30–31 of
Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.30–.31.’’
q. In footnote 20 to paragraph 18:
• In the first sentence, the reference
to ‘‘paragraph .06.l. of AU sec. 333’’ is
replaced with ‘‘AS 2805.06l.’’
• In the last sentence, the reference to
‘‘AU sec. 508’’ is replaced with ‘‘AS
3101.’’
r. In footnote 21 to paragraph 19, the
reference to ‘‘Auditing Standard No. 16’’
is replaced with ‘‘AS 1301.’’
s. In Appendix A, paragraph numbers
A1 through A3 are replaced with .A1
through .A3.
t. In paragraph A1:
• In the second sentence, the
reference to ‘‘paragraph A2.’’ is replaced
with ‘‘paragraph .A2.’’
• In the third sentence, the reference
to ‘‘paragraph A3.’’ is replaced with
‘‘paragraph .A3.’’
AU sec. 110, ‘‘Responsibilities and
Functions of the Independent Auditor’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures,’’ section 110,
‘‘Responsibilities and Functions of the
Independent Auditor’’ (AU sec. 110,
‘‘Responsibilities and Functions of the
Independent Auditor’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
110’’ is replaced with ‘‘AS 1001.’’
b. In the third sentence of paragraph
.01, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
c. In paragraph 02:
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• In footnote 1:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 11’’ is
replaced with ‘‘AS 2105.’’
• In the second sentence, the
reference to ‘‘section 317’’ is replaced
with ‘‘AS 2405.’’
• In footnote 2, the phrase ‘‘section
230, Due Professional Care in the
Performance of Work, paragraphs .10
through .13’’ is replaced with
‘‘paragraphs .10 through .13 of AS 1015,
Due Professional Care in the
Performance of Work.’’
d. In the first sentence of paragraph
.05, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
e. Paragraph .10 is deleted.
f. Paragraph .11 and its following note
is added:
The auditor should be aware of and
consider auditing interpretations
applicable to his or her audit. If the
auditor does not apply the auditing
guidance included in an applicable
auditing interpretation, the auditor
should be prepared to explain how he
or she complied with the provisions of
the auditing standard addressed by such
auditing guidance.
Note: The term ‘‘auditing
interpretations,’’ as used in this
paragraph, refers to the publications
entitled ‘‘Auditing Interpretation’’
issued by the American Institute of
Certified Public Accountants’ Auditing
Standards Board as in existence on
April 16, 2003, and in effect.
AU sec. 150, ‘‘Generally Accepted
Auditing Standards’’
SAS No. 95, ‘‘Generally Accepted
Auditing Standards’’ (AU sec. 150,
‘‘Generally Accepted Auditing
Standards’’), as amended, is rescinded.
AU sec. 161, ‘‘The Relationship of
Generally Accepted Auditing Standards
to Quality Control Standards’’
SAS No. 25, ‘‘The Relationship of
Generally Accepted Auditing Standards
to Quality Control Standards,’’ (AU sec.
161, ‘‘The Relationship of Generally
Accepted Auditing Standards to Quality
Control Standards’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
161’’ is replaced with ‘‘AS 1110.’’
b. The title ‘‘The Relationship of
Generally Accepted Auditing Standards
to Quality Control Standards’’ is
replaced with ‘‘Relationship of Auditing
Standards to Quality Control
Standards.’’
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
4)’’ is deleted.
d. In paragraph .01:
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• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• The last sentence is deleted.
e. In the second sentence of paragraph
.02, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
f. In paragraph .03:
• In the first sentence, the phrase
‘‘Generally accepted auditing
standards’’ is replaced with ‘‘Auditing
standards.’’
• In the second sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘auditing standards.’’
• In the last sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the auditing
standards.’’
AU sec. 201, ‘‘Nature of the General
Standards’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ (AU sec.
201, ‘‘Nature of the General Standards’’),
is rescinded.
AU sec. 210, ‘‘Training and Proficiency
of the Independent Auditor’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 210
‘‘Training and Proficiency of the
Independent Auditor’’ (AU sec. 210,
‘‘Training and Proficiency of the
Independent Auditor’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
210’’ is replaced with ‘‘AS 1010.’’
b. In paragraph .01, the introductory
phrase ‘‘The first general standard is:’’ is
deleted.
c. In paragraph .02, the phrase ‘‘This
standard’’ is replaced with the phrase
‘‘The statement in the preceding
paragraph.’’
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AU sec. 220, ‘‘Independence’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 220
‘‘Independence’’ (AU sec. 220,
‘‘Independence’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
220’’ is replaced with ‘‘AS 1005.’’
b. In paragraph .01, the introductory
phrase ‘‘The second general standard
is:’’ is deleted.
c. In the first sentence of paragraph
.02, the phrase ‘‘This standard’’ is
replaced with the phrase ‘‘The
statement in the preceding paragraph.’’
d. In paragraph .05, the phrase ‘‘that
differ from the AICPA requirements in
certain respects’’ is deleted.
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AU sec. 230, ‘‘Due Professional Care in
the Performance of Work’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 230
‘‘Due Professional Care in the
Performance of Work’’ (AU sec. 230,
‘‘Due Professional Care in the
Performance of Work’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
230’’ is replaced with ‘‘AS 1015.’’
b. Footnote * to the title of the
standard is deleted.
c. In paragraph .01:
• The introductory phrase ‘‘The third
general standard is:’’ is deleted.
• Footnote 1 is deleted.
d. In the first sentence of paragraph
.02, the phrase ‘‘This standard’’ is
replaced with ‘‘The statement in the
preceding paragraph.’’
e. In footnote 4 to paragraph .06, the
reference to ‘‘Auditing Standard No. 10’’
is replaced with ‘‘AS 1201.’’
f. In footnote 5 to paragraph .11, the
reference to ‘‘section 342’’ is replaced
with ‘‘AS 2501.’’
g. In paragraph .12:
• In the fifth sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In the sixth sentence, the
parenthetic reference to ‘‘paragraph 9 of
Auditing Standard No. 15’’ is replaced
with ‘‘paragraph .09 of AS 1105.’’
AU sec. 315, ‘‘Communications Between
Predecessor and Successor Auditors’’
SAS No. 84, ‘‘Communications
Between Predecessor and Successor
Auditors’’ (AU sec. 315,
‘‘Communications Between Predecessor
and Successor Auditors’’), as amended,
is amended as follows:
a. The section number ‘‘AU Section
315’’ is replaced with ‘‘AS 2610.’’
b. The title ‘‘Communications
Between Predecessor and Successor
Auditors’’ is replaced with ‘‘Initial
Audits—Communications Between
Predecessor and Successor Auditors.’’
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
7)’’ is deleted.
d. In last sentence of paragraph .01,
the phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘the
standards of the PCAOB.’’
e. In paragraph .09:
• The sentence ‘‘The successor
auditor may wish to consider other
reasonable inquiries.’’ is moved to the
end of the paragraph, after the fifth
bullet.
• In footnote 5 to the third bullet:
• The reference to ‘‘section 316’’ is
replaced with ‘‘AS 2401.’’
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• The reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
• The reference to ‘‘section 325’’ is
replaced with ‘‘AS 1305.’’
• In footnote 5A to the last bullet, the
reference to ‘‘Paragraph .66 of AU sec.
316, Consideration of Fraud in a
Financial Statement Audit,’’ is replaced
with ‘‘AS 2401.66.’’
f. In the last sentence of footnote 8 to
paragraph .12, the reference to ‘‘section
543, Part of Audit Performed by Other
Independent Auditors, paragraph 10a’’
is replaced with ‘‘paragraph .10a of AS
1205, Part of the Audit Performed by
Other Independent Auditors.’’
g. In paragraph .16:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In the second sentence, the
reference to ‘‘section 543, Part of Audit
Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205.’’
• In the last sentence:
• The reference to ‘‘AU sec. 336’’ is
replaced with ‘‘AS 1210.’’
• The reference to ‘‘AU sec. 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements,’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
• The reference to ‘‘paragraphs 16–19
of PCAOB Auditing Standard No. 5’’ is
replaced with ‘‘paragraphs .16–.19 of AS
2201.’’
h. In the first sentence of paragraph
.20, the reference to ‘‘section 331,
Inventories’’ is replaced with ‘‘AS 2510,
Auditing Inventories.’’
i. In paragraph .21:
• In the last sentence, the reference to
‘‘section 561’’ is replaced with ‘‘AS
2905.’’
• In footnote 9, the reference to
‘‘section 508, Reports on Audited
Financial Statements, paragraphs .70
through .74’’ is replaced with
‘‘paragraphs .70 through .74 of AS 3101,
Reports on Audited Financial
Statements.’’
j. Under item 1 of paragraph 25:
• In the first sentence of the
illustrative letter’s first paragraph, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the first bullet, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In item (2) of the illustrative
paragraph, the phrase ‘‘generally
accepted auditing standards’’ is
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replaced with ‘‘the standards of the
PCAOB.’’
AU sec. 316, ‘‘Consideration of Fraud in
a Financial Statement Audit’’
SAS No. 99, ‘‘Consideration of Fraud
in a Financial Statement Audit’’ (AU
sec. 316, ‘‘Consideration of Fraud in a
Financial Statement Audit’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
316’’ is replaced with ‘‘AS 2401.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
82)’’ is deleted.
c. In paragraph .01:
• In the first sentence, the reference
to ‘‘Section 110, Responsibilities and
Functions of the Independent Auditor,
paragraph .02’’ is replaced with
‘‘Paragraph .02 of AS 1001,
Responsibilities and Functions of the
Independent Auditor,.’’
• In the note, the reference to
‘‘paragraphs 14–15 of PCAOB Auditing
Standard No. 5’’ is replaced with
‘‘paragraphs .14–.15 of AS 2201.’’
• In the first sentence of footnote 1,
the reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
d. In paragraph .01A:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.’’
• In the second sentence, the
reference to ‘‘Auditing Standard No. 13’’
is replaced with ‘‘AS 2301.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
e. In the second sentence of paragraph
.04, the reference to ‘‘section 110.03’’ is
replaced with ‘‘AS 1001.03.’’
f. In the fifth sentence of paragraph
.09, the term ‘‘GAAS’’ is replaced with
‘‘the standards of the PCAOB.’’
g. In footnote 7 to paragraph .12, the
reference to ‘‘section 230, Due
Professional Care in the Performance of
Work, paragraphs .10 through .13’’ is
replaced with ‘‘paragraphs .10 through
.13 of AS 1015, Due Professional Care
in the Performance of Work.’’
h. In the second sentence of paragraph
.13, the phrase ‘‘section 230, Due
Professional Care in the Performance of
Work, paragraphs .07 through .09’’ is
replaced with ‘‘AS 1015.07 through
.09.’’
i. In paragraph .52:
• In the first sentence, the reference
to ‘‘Paragraph 8 of Auditing Standard
No. 13, The Auditor’s Responses to the
Risks of Material Misstatement,’’ is
replaced with ‘‘AS 2301.08.’’
• In the last sentence, the reference to
‘‘Paragraph 12 of Auditing Standard No.
13’’ is replaced with ‘‘AS 2301.12.’’
• In the note, the reference to
‘‘Paragraph 71.b. of Auditing Standard
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No. 12, Identifying and Assessing Risks
of Material Misstatement,’’ is replaced
with ‘‘AS 2110.71b.’’
j. In paragraph .53:
• In footnote 20 to the fourth bullet,
the reference to ‘‘AU sec. 329’’ is
replaced with ‘‘AS 2305.’’
• In the fifth bullet, the parenthetic
reference to ‘‘paragraph 54 of Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.54.’’
k. In paragraph .54:
• In footnote 21 to the second subbullet of the first bullet, the reference to
‘‘AU sec. 330’’ is replaced with ‘‘AS
2310.’’
• In footnote 22 to the second bullet,
the reference to ‘‘AU sec. 336’’ is
replaced with ‘‘AS 1210.’’
• In the third bullet:
• In the fourth sentence, the reference
to ‘‘section 342’’ replaced with ‘‘AS
2501.’’
• In the fifth sentence, the parenthetic
reference to ‘‘section 342.09 through
.14’’ is replaced with ‘‘AS 2501.09
through .14.’’
l. In the second sentence of paragraph
.56, the reference to ‘‘paragraphs 8
through 15 of Auditing Standard No. 13,
The Auditor’s Responses to the Risks of
Material Misstatement,’’ is replaced
with ‘‘AS 2301.08 through .15.’’
m. In footnote 23 to item 1 of
paragraph .58, the reference to
‘‘paragraphs 28 through 32 of Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.28 through .32.’’
n. In the last sentence of the fifth
bullet of paragraph .61, the reference to
‘‘paragraphs 11 through 14 of Auditing
Standard No. 9’’ is replaced with
‘‘paragraphs .11 through .14 of AS
2101.’’
o. In the last sentence of paragraph
.63, the reference to ‘‘Paragraphs 24
through 27 of Auditing Standard No. 14,
Evaluating Audit Results’’ is replaced
with ‘‘AS 2810.24 through .27.’’
p. In footnote 24 to paragraph .63, the
reference to ‘‘section 342, Auditing
Accounting Estimates, paragraphs .02
and .16,’’ is replaced with ‘‘AS 2501.02
and .16.’’
q. In paragraph .66:
• In the first note, the reference to
‘‘Auditing Standard No. 12, Identifying
and Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.’’
• In the second note:
• In the second sentence, the
reference to ‘‘paragraphs 14–16 of
Auditing Standard No. 18’’ is replaced
with ‘‘paragraphs .14–.16 of AS 2410.’’
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• In the last sentence, the reference to
‘‘Auditing Standard No. 18, Related
Parties,’’ is replaced with ‘‘AS 2410.’’
r. In the note to paragraph .66A, the
reference to ‘‘Paragraph 11A of Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.11A.’’
s. In paragraph 67:
• In the note, the reference to
‘‘Paragraphs 20–23 of Auditing Standard
No. 14, Evaluating Audit Results,’’ is
replaced with ‘‘AS 2810.20–.23.’’
• In the second sentence of footnote
25A to the third bullet, the reference to
‘‘Auditing Standard No. 18, Related
Parties,’’ is replaced with ‘‘AS 2410.’’
t. In paragraph 67A:
• In the note, the reference to ‘‘AU
sec. 550’’ is replaced with ‘‘AS 2710.’’
• In footnote 25B, the reference to
‘‘paragraphs 30–31 of Auditing Standard
No. 14’’ is replaced with ‘‘AS 2810.30–
.31.’’
u. In paragraph .80:
• In the second sentence, the
parenthetic reference to ‘‘section 325,
‘Communications About Control
Deficiencies in An Audit of Financial
Statements,’ paragraph 4’’ is replaced
with ‘‘paragraph .04 of AS 1305,
Communications About Control
Deficiencies in an Audit of Financial
Statements.’’
• In the third sentence, the
parenthetic reference to ‘‘paragraphs
72–73 of Auditing Standard No. 12,
Identifying and Assessing Risks of
Material Misstatement’’ is replaced with
‘‘AS 2110.72–.73.’’
v. In the second sentence of paragraph
.81, the parenthetic reference to
‘‘paragraphs 12–13 of Auditing Standard
No. 16’’ is replaced with ‘‘paragraphs
.12–.13 of AS 1301.’’
w. In paragraph .82:
• In item a, the reference to ‘‘AU sec.
315, Communications Between
Predecessor and Successor Auditors’’ is
replaced with ‘‘AS 2610, Initial
Audits—Communications Between
Predecessor and Successor Auditors.’’
• In footnote 40, the reference to
‘‘Section 315’’ is replaced with ‘‘AS
2610.’’
x. In paragraph .83:
• In the first bullet, the parenthetic
reference to ‘‘paragraphs 52 and 53 of
Auditing Standard No. 12, Identifying
and Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.52 and .53.’’
• In the second bullet, the parenthetic
reference to ‘‘paragraph 47, paragraphs
56 through 58, and paragraphs 65
through 69 of Auditing Standard No. 12,
Identifying and Assessing Risks of
Material Misstatement’’ is replaced with
‘‘AS 2110.47, AS 2110.56 through .58,
and AS 2110.65 through .69.’’
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• In the third bullet:
• The first parenthetic reference to
‘‘(paragraphs 59 through 69 of Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement)’’ is replaced with ‘‘(AS
2110.59 through .69.).’’
• The second parenthetic reference to
‘‘(paragraphs 5 through 15 of Auditing
Standard No. 13, The Auditor’s
Response to the Risks of Material
Misstatement)’’ is replaced with ‘‘(AS
2301.05 through .15.).’’
• In the fourth bullet, the parenthetic
reference to ‘‘paragraph 68 of Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.68.’’
• In the fifth bullet, the parenthetic
reference to ‘‘paragraph 15 of Auditing
Standard No. 13, The Auditor’s
Responses to the Risks of Material
Misstatements’’ is replaced with ‘‘AS
2301.15.’’
• In the sixth bullet, the parenthetic
reference to ‘‘paragraphs 5 through 9 of
Auditing Standard No. 14, Evaluating
Audit Results’’ is replaced with ‘‘AS
2810.05 through .09.’’
y. In the first sentence of item A.1 of
paragraph .85, the reference to
‘‘paragraphs 65 through 69 of Auditing
Standard No. 12, Identifying and
Assessing Risks of Material
Misstatement’’ is replaced with ‘‘AS
2110.65 through .69.’’
z. Paragraphs .86 through .88 are
deleted.
aa. Footnotes 5 and 6 to paragraph .86
are deleted.
bb. Footnote 8 to paragraph .87 is
deleted.
cc. Footnotes 1 through 11 to
paragraph .88 are deleted.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 317, ‘‘Illegal Acts by Clients’’
SAS No. 54, ‘‘Illegal Acts by Clients’’
(AU sec. 317, ‘‘Illegal Acts by Clients’’),
as amended, is amended as follows:
a. The section number ‘‘AU Section
317’’ is replaced with ‘‘AS 2405.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
328)’’ is deleted.
c. In the first sentence of paragraph
.01, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
d. In the last sentence of paragraph
.05, the reference to ‘‘section 110’’ is
replaced with ‘‘AS 1001.’’
e. In the last sentence of paragraph
.07, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘PCAOB auditing standards.’’
f. In paragraph .08:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
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is replaced with ‘‘PCAOB auditing
standards.’’
• The parenthetic reference to
‘‘section 333’’ is replaced with ‘‘AS
2805.’’
g. In footnote 2 to paragraph .21, the
reference to ‘‘section 508’’ is replaced
with ‘‘AS 3101.’’
h. In the subtitle before paragraph .22,
the phrase ‘‘in Accordance With
Generally Accepted Auditing
Standards’’ is deleted.
i. In paragraph .23b:
• The reference to ‘‘section 315,
Communications Between Predecessor
and Successor Auditors’’ is replaced
with ‘‘AS 2610, Initial Audits—
Communications Between Predecessor
and Successor Auditors.’’
• In footnote 5, the reference to
‘‘section 315’’ is replaced with ‘‘AS
2610.’’
AU sec. 9317, ‘‘Illegal Acts by Clients:
Auditing Interpretations of Section 317’’
AU sec. 9317, ‘‘Illegal Acts by Clients:
Auditing Interpretations of Section
317,’’ is amended as follows:
a. The section number ‘‘AU Section
9317’’ is replaced with ‘‘AI 13.’’
b. The title ‘‘Illegal Acts by Clients:
Auditing Interpretations of Section 317’’
is replaced with ‘‘Illegal Acts by Clients:
Auditing Interpretations of AS 2405.’’
c. In paragraph .01:
• In the first sentence, the phrase
‘‘The second standard of field work
requires’’ is replaced with ‘‘The auditing
standards require.’’
• In the last sentence:
• The reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405, Illegal Acts by
Clients.’’
• The phrase ‘‘the second standard of
field work’’ is replaced with ‘‘AS 2110,
Identifying and Assessing Risks of
Material Misstatement.’’
d. In paragraph .03, the reference to
‘‘section 317’’ is replaced with ‘‘AS
2405.’’
e. In paragraph .05, the parenthetic
reference to ‘‘section 317.22’’ is replaced
with ‘‘AS 2405.22.’’
AU sec. 322, ‘‘The Auditor’s
Consideration of the Internal Audit
Function in an Audit of Financial
Statements’’
SAS No. 54, ‘‘The Auditor’s
Consideration of the Internal Audit
Function in an Audit of Financial
Statements’’ (AU sec. 322, ‘‘The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
322’’ is replaced with ‘‘AS 2605.’’
b. The title ‘‘The Auditor’s
Consideration of the Internal Audit
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Function in an Audit of Financial
Statements’’ is replaced with
‘‘Consideration of the Internal Audit
Function.’’
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
9)’’ is deleted.
d. In the last sentence of paragraph
.01, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
e. In the note to paragraph .01, the
reference to ‘‘paragraphs 16–19 of
PCAOB Auditing Standard No. 5’’ is
replaced with ‘‘paragraphs .16–.19 of AS
2201.’’
f. In paragraph .02:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In footnote 2, the phrase ‘‘the
AICPA Code of Professional Conduct’’ is
replaced with ‘‘PCAOB Rule 3520,
Auditor Independence.’’
g. In footnote 3 to paragraph .04, the
reference to ‘‘Auditing Standard No. 12’’
is replaced with ‘‘AS 2110.’’
h. In footnote 5 to paragraph .18, the
reference to ‘‘paragraph 8 of Auditing
Standard No. 15’’ is replaced with
‘‘paragraph .08 of AS 1105.’’
i. In footnote 6 to paragraph .19, the
reference to ‘‘section 543, Part of Audit
Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205,
Part of the Audit Performed by Other
Independent Auditors.’’
j. In the note to paragraph .22, the
reference to ‘‘paragraphs 18–19 of
PCAOB Auditing Standard No. 5, An
Audit of Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.18–.19.’’
k. In footnote 8 to paragraph .27, the
reference to ‘‘Auditing Standard No. 10’’
is replaced with ‘‘AS 1201.’’
l. In the appendix, the title ‘‘The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with
‘‘Consideration of the Internal Audit
Function.’’
AU sec. 324, ‘‘Service Organizations’’
SAS No. 70, ‘‘Service Organizations’’
(AU sec. 324, ‘‘Service Organizations’’),
as amended, is amended as follows:
a. The section number ‘‘AU Section
324’’ is replaced with ‘‘AS 2601.’’
b. The title ‘‘Service Organizations’’ is
replaced with ‘‘Consideration of an
Entity’s Use of a Service Organization.’’
c. Footnote * to the title of the
standard is deleted.
d. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
44)’’ is deleted.
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e. In the note to paragraph .01, the
reference to ‘‘paragraphs B17–B27 of
Appendix B, Special Topics, of PCAOB
Auditing Standard No. 5’’ is replaced
with ‘‘paragraphs .B17–.B27 of
Appendix B, Special Topics, of AS
2201.’’
f. In paragraph .07:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.’’
• In the third bullet, the second
sentence is deleted.
g. In the first sentence of paragraph
.16, the reference to ‘‘paragraph 18 and
paragraphs 29 through 31 of Auditing
Standard No. 13’’ is replaced with
‘‘paragraph .18 and paragraphs .29
through .31 of AS 2301.’’
h. In the last sentence of paragraph
.18, the reference to ‘‘section 543, Part
of Audit Performed by Other
Independent Auditors, paragraph .10a’’
is replaced with ‘‘paragraph .10a of AS
1205, Part of the Audit Performed by
Other Independent Auditors.’’
i. In the first sentence of paragraph 19,
the reference to ‘‘section 543.12’’ is
replaced with ‘‘AS 1205.12.’’
j. In the last sentence of paragraph .20,
the reference to ‘‘section 325’’ is
replaced with ‘‘AS 1305.’’
k. In the second sentence of paragraph
.22:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The phrase ‘‘general standards and
with the relevant fieldwork and
reporting standards’’ is replaced with
‘‘relevant PCAOB auditing standards.’’
l. In the second sentence of paragraph
.23:
• The reference to ‘‘Auditing
Standard No. 14’’ is replaced with ‘‘AS
2810.’’
• The reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
m. In paragraph .38, in the last
sentence of the first paragraph of the
sample report on controls placed in
operation at a service organization, the
phrase ‘‘standards established by the
American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
n. In the last sentence of paragraph
.41, the reference to ‘‘Section 350’’ is
replaced with ‘‘AS 2315.’’
o. In paragraph .54, in the last
sentence of the first paragraph of the
sample report on controls placed in
operation at a service organization and
tests of operating effectiveness, the
phrase ‘‘standards established by the
American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
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standards of the Public Company
Accounting Oversight Board (United
States).’’
AU sec. 9324, ‘‘Service Organizations:
Auditing Interpretations of Section 324’’
AU sec. 9324, ‘‘Service Organizations:
Auditing Interpretations of Section
324,’’ as amended, is amended as
follows:
a. The section number ‘‘AU Section
9324’’ is replaced with ‘‘AI 18.’’
b. The title ‘‘Service Organizations:
Auditing Interpretations of Section 324’’
is replaced with ‘‘Consideration of an
Entity’s Use of a Service Organization:
Auditing Interpretations of AS 2601.’’
c. In paragraph .01:
• In the first sentence, the reference
to ‘‘section 324, Service Organizations’’
is replaced with ‘‘AS 2601,
Consideration of an Entity’s Use of a
Service Organization.’’
• In the second sentence, the
reference to ‘‘Section 324.44f’’ is
replaced with ‘‘AS 2601.44f.’’
d. In the first sentence of paragraph
.02, the reference to ‘‘section 324.44f’’ is
replaced with ‘‘AS 2601.44f.’’
e. In paragraph .05:
• In the third sentence, the reference
to ‘‘Paragraphs .06 through .17 of
section 324, Service Organizations,’’ is
replaced with ‘‘AS 2601.06 through
.17.’’
• In the fourth sentence, the reference
to ‘‘section 324.06–.17’’ is replaced with
‘‘AS 2601.06–.17.’’
• In the last sentence, the reference to
‘‘section 324.06’’ is replaced with ‘‘AS
2601.06.’’
f. In the second sentence of paragraph
.07, the reference to ‘‘Section 324.11–
.16’’ is replaced with ‘‘AS 2601.11–.16.’’
g. Following paragraph .16, in the
Sample Scope Paragraph of a Service
Auditor’s Report Using the Carve-Out
Method:
• The heading ‘‘Independent Service
Auditor’s Report’’ above the example
report is replaced with ‘‘Service
Auditor’s Report of Independent
Registered Public Accounting Firm.’’
• In the last sentence of the report,
the phrase ‘‘standards established by the
American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the bracketed sentence, the
reference to ‘‘section 324.38 and .54’’ is
replaced with ‘‘AS 2601.38 and .54.’’
h. In the first sentence of paragraph
.17, the reference to ‘‘section 324.12’’ is
replaced with ‘‘AS 2601.12.’’
i. Following paragraph .18, in the
Sample Service Auditor’s Report Using
the Inclusive Method:
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• The heading ‘‘Independent Service
Auditor’s Report’’ above the example
report is replaced with ‘‘Service
Auditor’s Report of Independent
Registered Public Accounting Firm.’’
• In the last sentence of the first
paragraph of the report, the phrase
‘‘standards established by the American
Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
j. In paragraph .35, each reference to
‘‘Section 324.32’’ or ‘‘section 324.32’’ is
replaced with ‘‘AS 2601.32.’’
k. In paragraph .36:
• Each reference to ‘‘Section 324.32’’
or ‘‘section 324.32’’ is replaced with
‘‘AS 2601.32.’’
• Footnote 2 is deleted.
l. In the first sentence of paragraph
.37, the reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
m. In paragraph .38:
• In the first sentence, the reference
to ‘‘Section 324.29g and .44l’’ is
replaced with ‘‘AS 2601.29g and .44l.’’
• In the second sentence, the
reference to ‘‘Section 324.44l’’ is
replaced with ‘‘AS 2601.44l.’’
• In the third sentence, the reference
to ‘‘section 324.38 and .54’’ is replaced
with ‘‘AS 2601.38 and .54.’’
• In the fourth sentence, the reference
to ‘‘section 324.54’’ is replaced with
‘‘AS 2601.54.’’
n. In the first sentence of paragraph
.39, the reference to ‘‘section 324.38 and
.54’’ is replaced with ‘‘AS 2601.38 and
.54.’’
o. In the first sentence of paragraph
.40, the reference to ‘‘section 324.38 and
.54’’ is replaced with ‘‘AS 2601.38 and
.54.’’
AU sec. 325, ‘‘Communications About
Control Deficiencies in an Audit of
Financial Statements’’
AU sec. 325, ‘‘Communications About
Control Deficiencies in an Audit of
Financial Statements,’’ as amended, is
amended as follows:
a. The section number ‘‘AU Section
325’’ is replaced with ‘‘AS 1305.’’
b. Paragraph numbers 1 through 9 are
replaced with .01 through .09.
c. The directions before paragraph 1
are replaced with the following:
Note: For an integrated audit of
financial statements and internal
control over financial reporting, see
paragraphs .78–.84 of AS 2201, An
Audit of Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements.
Note: The following paragraphs apply
in an audit of financial statements only:
d. In the second note to paragraph 3,
the reference to ‘‘paragraphs 62–70 of
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
PCAOB Auditing Standard No. 5, An
Audit of Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘AS 2201.62–.70.’’
e. In the last sentence of paragraph 4,
the reference to ‘‘paragraphs 2 and 3’’ is
replaced with ‘‘paragraphs .02 and .03.’’
f. In the last sentence of paragraph 9:
• The reference to ‘‘AU sec. 325’’ is
replaced with ‘‘AS 1305.’’
• The reference to ‘‘paragraph 2’’ is
replaced with ‘‘paragraph .02.’’
AU sec. 9325, ‘‘Communication of
Internal Control Related Matters Noted
in an Audit: Auditing Interpretations of
Section 325’’
AU sec. 9325, ‘‘Communication of
Internal Control Related Matters Noted
in an Audit: Auditing Interpretations of
Section 325,’’ as amended, is amended
as follows:
a. The section number ‘‘AU Section
9325’’ is replaced with ‘‘AI 12.’’
b. The title ‘‘Communication of
Internal Control Related Matters Noted
in an Audit: Auditing Interpretations of
Section 325’’ is replaced with
‘‘Communications About Control
Deficiencies in an Audit of Financial
Statements: Auditing Interpretations of
AS 1305.’’
c. In the note before paragraph .01:
• In the first sentence:
• The reference to ‘‘AU sec. 325’’ is
replaced with ‘‘AS 1305,
Communications About Control
Deficiencies in an Audit of Financial
Statements.’’
• The reference to ‘‘paragraph 2’’ is
replaced with ‘‘paragraph .02.’’
• In the last sentence, the reference to
‘‘paragraph A7 of Appendix A,
Definitions, of PCAOB Auditing
Standard No. 5’’ is replaced with
‘‘paragraph .A7 of Appendix A,
Definitions, of AS 2201.’’
d. In the first sentence of paragraph
.01, the reference to ‘‘Section 325’’ is
replaced with ‘‘AS 1305.’’
e. In the second sentence of paragraph
.02, the reference to ‘‘Section 325’’ is
replaced with ‘‘AS 1305.’’
f. In the first sentence of paragraph
.03, the reference to ‘‘Section 325’’ is
replaced with ‘‘AS 1305.’’
g. In the example report below
paragraph .04, in the second sentence,
the phrase ‘‘standards established by the
American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
AU sec. 9326, ‘‘Evidential Matter:
Auditing Interpretations of Section 326’’
AU sec. 9326, ‘‘Evidential Matter:
Auditing Interpretations of Section
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326,’’ as amended, is amended as
follows:
a. The section number ‘‘AU Section
9326’’ is replaced with ‘‘AI 28.’’
b. The title ‘‘Evidential Matter:
Auditing Interpretations of Section 326’’
is replaced with ‘‘Evidential Matter
Relating to Income Tax Accruals:
Auditing Interpretations.’’
c. In paragraph .10:
• In the first sentence, the phrase
‘‘third standard of field work requires’’
is replaced with ‘‘auditing standards
require.’’
• In the second sentence, the
reference to ‘‘Paragraph 35 of Auditing
Standard No. 14’’ is replaced with
‘‘Paragraph .35 of AS 2810.’’
• In the third sentence, the reference
to ‘‘Section 508, Reports on Audited
Financial Statements, paragraph .24’’ is
replaced with ‘‘Paragraph .24 of AS
3101, Reports on Audited Financial
Statements.’’
• In the fourth sentence, the reference
to ‘‘section 333 on Management
Representations’’ is replaced with ‘‘AS
2805, Management Representations.’’
• In the fifth sentence:
• The reference to ‘‘Section 333.06’’ is
replaced with ‘‘AS 2805.06.’’
• The reference to ‘‘section 333.08’’ is
replaced with ‘‘AS 2805.08.’’
• In the last sentence, the reference to
‘‘section 333.13’’ is replaced with ‘‘AS
2805.13.’’
d. In the first sentence of paragraph
.12, the phrase ‘‘Section 339, Audit
Documentation, states that audit
documentation is the principal record’’
is replaced with ‘‘Audit documentation
is the written record.’’
e. In paragraph .16, the reference to
‘‘section 336’’ is replaced with ‘‘AS
1210.’’
f. In the first sentence of paragraph
.18, the reference to ‘‘Section 336.01’’ is
replaced with ‘‘AS 1210.01.’’
g. In the first sentence of paragraph
.19, the reference to ‘‘section 337’’ is
replaced with ‘‘AS 2505.’’
AU sec. 328, ‘‘Auditing Fair Value
Measurements and Disclosures’’
SAS No. No. 101, ‘‘Auditing Fair
Value Measurements and Disclosures’’
(AU sec. 328, ‘‘Auditing Fair Value
Measurements and Disclosures’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
328’’ is replaced with ‘‘AS 2502.’’
b. In paragraph .06 each reference to
‘‘Section 342’’ or ‘‘section 342’’ is
replaced with ‘‘AS 2501.’’
c. In footnote 3 to paragraph .07, the
reference to ‘‘section 332’’ is replaced
with ‘‘AS 2503.’’
d. In the first sentence of paragraph
.11, the reference to ‘‘Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.’’
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e. In the last sentence of the fifth
bullet of paragraph .12, the reference to
‘‘section 324, Service Organizations’’ is
replaced with ‘‘AS 2601, Consideration
of an Entity’s Use of a Service
Organization.’’
f. In the first sentence of paragraph
.14, the reference to ‘‘Paragraph A5,
second note of Auditing Standard No.
5’’ is replaced with ‘‘Paragraph .A5,
second note of AS 2201.’’
g. In the last sentence of paragraph
.20, the reference to ‘‘section 336’’ is
replaced with ‘‘AS 1210.’’
h. In paragraph .22, the reference to
‘‘Section 336’’ or ‘‘section 336’’ is
replaced with ‘‘AS 1210.’’
i. In footnote 6 to paragraph .40, the
reference to ‘‘section 329, Analytical
Procedures’’ is replaced with ‘‘AS 2305,
Substantive Analytical Procedures.’’
j. In footnote 7 to paragraph .41, the
reference to ‘‘section 560’’ is replaced
with ‘‘AS 2801.’’
k. In footnote 8 to paragraph .43, the
reference to ‘‘paragraph 31 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraph .31 of AS 2810.’’
l. In the last sentence of paragraph
.47, the parenthetic reference to
‘‘paragraphs 12 through 18 and 24
through 27 of Auditing Standard No. 14,
Evaluating Audit Results’’ is replaced
with ‘‘AS 2810.12 through .18 and AS
2810.24 through .27.’’
m. In the first sentence of paragraph
.48:
• The reference to ‘‘Section 333’’ is
replaced with ‘‘AS 2805.’’
• The reference to ‘‘generally
accepted auditing standards’’ is
replaced with ‘‘the standards of the
PCAOB.’’
n. In paragraph .50, the reference to
‘‘Paragraphs 12–13 of Auditing Standard
No. 16’’ is replaced with ‘‘Paragraphs
.12–.13 of AS 1301.’’
AU sec. 329, ‘‘Substantive Analytical
Procedures’’
SAS No. 56, ‘‘Analytical Procedures’’
(AU sec. 329, ‘‘Substantive Analytical
Procedures’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
329’’ is replaced with ‘‘AS 2305.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
318)’’ is deleted.
c. In paragraph .01:
• In the first note, the reference to
‘‘Auditing Standard No. 12’’ is replaced
with ‘‘AS 2110.’’
• In the second note, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
d. In the last sentence of paragraph
.09, the parenthetic reference to
‘‘paragraph 11 of Auditing Standard No.
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13’’ is replaced with ‘‘paragraph .11 of
AS 2301.’’
e. In footnote 1 to paragraph .09, the
reference to ‘‘Auditing Standard No. 15’’
is replaced with ‘‘AS 1105.’’
f. In the last sentence of paragraph
.21, the parenthetic reference to
‘‘Auditing Standard No. 14, Evaluating
Audit Results’’ is replaced with ‘‘AS
2810.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 330, ‘‘The Confirmation
Process’’
SAS No. 67, ‘‘The Confirmation
Process’’ (AU sec. 330, ‘‘The
Confirmation Process’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
330’’ is replaced with ‘‘AS 2310.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
331.03–.08)’’ is deleted.
c. In paragraph .01:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In the last bullet:
• In the first sentence, the reference
to ‘‘section 331, Inventories, paragraphs
.03–.08’’ is replaced with ‘‘paragraphs
.03–.08 of AS 2510, Auditing
Inventories.’’
• Each reference to ‘‘section 331.01’’
is replaced with ‘‘AS 2510.01.’’
d. In paragraph .02:
• In the second sentence:
• The reference to ‘‘section 350’’ is
replaced with ‘‘AS 2315.’’
• The reference to ‘‘Auditing
Standard No. 13’’ is replaced with ‘‘AS
2301.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 13, The
Auditor’s Responses to the Risks of
Material Misstatement’’ is replaced with
‘‘AS 2301.’’
e. In paragraph .03:
• The reference to ‘‘section 336’’ is
replaced with ‘‘AS 1210.’’
• The reference to ‘‘section 337’’ is
replaced with ‘‘AS 2505.’’
f. In the first sentence of paragraph
.05, the reference to ‘‘Auditing Standard
No. 8’’ is replaced with ‘‘AS 1101.’’
g. In the last sentence of paragraph
.06, the reference to ‘‘paragraph 8 of
Auditing Standard No. 15’’ is replaced
with ‘‘paragraph .08 of AS 1105.’’
h. In the last sentence of paragraph
.11, the reference to ‘‘Auditing Standard
No. 15, Audit Evidence,’’ is replaced
with ‘‘AS 1105.’’
i. In paragraph .15, the parenthetic
reference to ‘‘section 230’’ is replaced
with ‘‘AS 1015.’’
j. In footnote 2 to paragraph .27, the
reference to ‘‘Auditing Standard No. 18’’
is replaced with ‘‘AS 2410.’’
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Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
g. In the first sentence of paragraph
.09, the reference to ‘‘Auditing Standard
No. 12’’ is replaced with ‘‘AS 2110.’’
h. Footnote 6 to paragraph .10 is
deleted.
AU sec. 331, ‘‘Inventories’’
i. In paragraph .11:
• In the fourth sentence, the reference
SAS No. 1, ‘‘Codification of Auditing
to ‘‘Paragraphs 28 through 32 and B1
Standards and Procedures’’ section 331
through B6 of Auditing Standard No. 12,
‘‘Inventories’’ (AU sec. 331,
‘‘Inventories’’), as amended, is amended Identifying and Assessing Risks of
Material Misstatement’’ is replaced with
as follows:
‘‘AS 2110.28 through .32 and AS
a. The section number ‘‘AU Section
2110.B1 through .B6.’’
331’’ is replaced with ‘‘AS 2510.’’
• In the last sentence, the reference to
b. The title ‘‘Inventories’’ is replaced
‘‘section 324, Service Organizations’’ is
with ‘‘Auditing Inventories.’’
replaced with ‘‘AS 2601, Consideration
c. Footnote * to the title of the
of an Entity’s Use of a Service
standard is deleted.
Organization.’’
d. Footnote 3 to the subtitle before
• In the note, the reference to
paragraph .14, ‘‘Inventories Held in
‘‘paragraph 39 of PCAOB Auditing
Public Warehouses,’’ is deleted.
Standard No. 5’’ is replaced with
e. In paragraph .15, the reference to
‘‘paragraph .39 of AS 2201.’’
‘‘sections 508.24 and 508.67’’ is
j. In footnote 8 to the fifth bullet of
replaced with ‘‘paragraphs .24 and .67
paragraph .14, the reference to ‘‘Section
of AS 3101, Reports on Audited
324’’ is replaced with ‘‘AS 2601.’’
Financial Statements.’’
k. In the last sentence of paragraph
.15, the reference to ‘‘Auditing Standard
AU sec. 332, ‘‘Auditing Derivative
No. 12, Identifying and Assessing Risks
Instruments, Hedging Activities, and
of Material Misstatement’’ is replaced
Investments in Securities’’
with ‘‘AS 2110.’’
SAS No. 92, ‘‘Auditing Derivative
l. In paragraph .16a, the reference to
Instruments, Hedging Activities, and
‘‘section 324’’ is replaced with ‘‘AS
Investments in Securities’’ (AU sec. 332,
2601.’’
‘‘Auditing Derivative Instruments,
m. Footnote 10 to paragraph .18 is
Hedging Activities, and Investments in
deleted.
Securities’’), as amended, is amended as
n. In paragraph .21:
follows:
• In the first sentence of footnote 11
a. The section number ‘‘AU Section
to the second bullet, the reference to
332’’ is replaced with ‘‘AS 2503.’’
‘‘Section 330’’ is replaced with ‘‘AS
b. Footnote 1 to the title of the
2310, The Confirmation Process.’’
standard is deleted.
• In footnote 12 to the last bullet, the
c. In the references before paragraph
reference to ‘‘Section 329’’ is replaced
.01, the phrase ‘‘(Supersedes SAS No.
with ‘‘AS 2305, Substantive Analytical
81)’’ is deleted.
Procedures.’’
d. In paragraph .01:
o. In footnote 13 to the second bullet
• In the last sentence, the reference to of paragraph .22, the reference to
‘‘paragraphs 11 and 12 of Auditing
‘‘Section 330.17’’ is replaced with ‘‘AS
Standard No. 15’’ is replaced with
2310.17.’’
‘‘paragraphs .11 and .12 of AS 1105.’’
p. In footnote 15 to paragraph .32, the
• In footnote 3, the reference to
reference to ‘‘section 508, Reports on
‘‘section 623, Special Reports, paragraph Audited Financial Statements,
.04’’ is replaced with ‘‘paragraph .04 of
paragraphs .16–.18’’ is replaced with
AS 3305, Special Reports.’’
‘‘paragraphs .16–.18 of AS 3101, Reports
e. In paragraph .06:
on Audited Financial Statements.’’
• In the first sentence, the reference
q. In paragraph .33:
to ‘‘Auditing Standard No. 9’’ is
• In the third sentence, the reference
replaced with ‘‘AS 2101.’’
to ‘‘section 560, Subsequent Events,
• In the second sentence, the
paragraphs .05–.06)’’ is replaced with
reference to ‘‘Auditing Standard No. 10’’ ‘‘paragraphs .05–.06 of AS 2801,
is replaced with ‘‘AS 1201.’’
Subsequent Events.’’
• In the last sentence, the reference to
• In the last sentence, the reference to
‘‘AU sec. 336’’ is replaced with ‘‘AS
‘‘section 560.03’’ is replaced with ‘‘AS
1210.’’
2801.03.’’
f. In the last sentence of paragraph
r. In paragraph .35:
• In the sixth sentence, the reference
.07, the reference to ‘‘section 322, The
to ‘‘section 342’’ is replaced with ‘‘AS
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial 2501.’’
k. In the last sentence of footnote 3 to
paragraph .28, the reference to ‘‘Section
322, The Auditor’s Consideration of the
Internal Audit Function in an Audit of
Financial Statements’’ is replaced with
‘‘AS 2605, Consideration of the Internal
Audit Function.’’
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• In the last sentence, the reference to
‘‘paragraphs 24 through 27 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraphs .24 through .27 of AS
2810.’’
s. In paragraph .39:
• Each reference to ‘‘Section 336’’ is
replaced with ‘‘AS 1210.’’
• Each reference to ‘‘Section 324’’ is
replaced with ‘‘AS 2601.’’
t. In paragraph .43a, the reference to
‘‘section 342’’ is replaced with ‘‘AS
2501.’’
u. In paragraph .43b, the reference to
‘‘section 336’’ is replaced with ‘‘AS
1210.’’
v. In the third sentence of paragraph
.49, the reference to ‘‘section 411, The
Meaning of Present Fairly in Conformity
with Generally Accepted Accounting
Principles, paragraph .04’’ is replaced
with ‘‘paragraph .04 of AS 2815, The
Meaning of ‘Present Fairly in
Conformity with Generally Accepted
Accounting Principles.’ ’’
w. In paragraph .51, the parenthetic
reference to ‘‘paragraph 31 of Auditing
Standard No. 14, Evaluating Audit
Results’’ is replaced with ‘‘AS 2810.31.’’
x. In paragraph .58:
• In the first sentence, the reference
to ‘‘Section 333’’ is replaced with ‘‘AS
2805.’’
• In footnote 20, the reference to
‘‘section 333.17’’ is replaced with ‘‘AS
2805.17.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 333, ‘‘Management
Representations’’
SAS No. 85, ‘‘Management
Representations’’ (AU sec. 333,
‘‘Management Representations’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
333’’ is replaced with ‘‘AS 2805.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
19)’’ is deleted.
c. In paragraph .01, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
d. In footnote 1 to paragraph .02, the
reference to ‘‘Section 230’’ is replaced
with ‘‘AS 1015.’’
e. In the third sentence of paragraph
.03, the reference to ‘‘Auditing Standard
No. 18’’ is replaced with ‘‘AS 2410.’’
f. In the note to paragraph .05, the
reference to ‘‘paragraphs 75–77 of
PCAOB Auditing Standard No. 5’’ is
replaced with ‘‘paragraphs .75–.77 of AS
2201.’’
g. In paragraph .06g:
• In footnote 4, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
• In the first sentence of footnote 6,
the reference to ‘‘Paragraph 11 of
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Auditing Standard No. 14, Evaluating
Audit Results’’ is replaced with ‘‘AS
2810.11.’’
• In footnote 7:
• In the first sentence:
• The reference to ‘‘section 317,
Illegal Acts by Clients, paragraph .17’’ is
replaced with ‘‘paragraph .17 of AS
2405, Illegal Acts by Clients.’’
• The reference to ‘‘section 316,
Consideration of Fraud in a Financial
Statement Audit, paragraphs .79
through .82’’ is replaced with
‘‘paragraphs .79 through .82 of AS 2401,
Consideration of Fraud in a Financial
Statement Audit.’’
• In the last sentence:
• The reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
• The reference to ‘‘section 316’’ is
replaced with ‘‘2401.’’
h. In footnote 9 to paragraph .06l, the
reference to ‘‘paragraph 18 of Auditing
Standard No. 18, Related Parties’’ is
replaced with ‘‘AS 2410.18.’’
i. In footnote 10 to paragraph .06o, the
reference to ‘‘section 317’’ is replaced
with ‘‘AS 2405.’’
j. In footnote 11 to paragraph .06p:
• In the first sentence, the reference
to ‘‘section 337, Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments, paragraph .05d’’ is
replaced with ‘‘paragraph .05d of AS
2505, Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments.’’
• The parenthetic reference to
‘‘section 9337.15–.17’’ is replaced with
‘‘paragraphs .15–.17 of AI 17, Inquiry of
a Client’s Lawyer Concerning Litigation,
Claims, and Assessments: Auditing
Interpretations of AS 2505.’’
k. In footnote 12 to paragraph .06q,
the reference to ‘‘section 337.05b’’ is
replaced with ‘‘AS 2505.05b.’’
l. In footnote 13 to paragraph .06t:
• The reference to ‘‘section 560,
Subsequent Events, paragraph .12’’ is
replaced with ‘‘paragraph .12 of AS
2801, Subsequent Events.’’
• The reference to ‘‘section 711,
Filings Under Federal Securities
Statutes, paragraph .10’’ is replaced
with ‘‘paragraph .10 of AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
• The reference to ‘‘section 634,
Letters for Underwriters and Certain
Other Requesting Parties, paragraph .45,
footnote 29’’ is replaced with
‘‘paragraph .45, footnote 31 of AS 6101,
Letters for Underwriters and Certain
Other Requesting Parties.’’
m. Footnote 14 to paragraph .07 is
deleted.
n. In the fourth sentence of paragraph
.09, the bracketed reference to ‘‘section
530, Dating of the Independent
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Auditor’s Report, paragraph .05’’ is
replaced with ‘‘paragraph .05 of AS
3110, Dating of the Independent
Auditor’s Report.’’
o. In footnote 15 to paragraph .12, the
reference to ‘‘section 508, Reports on
Audited Financial Statements,
paragraph .71’’ is replaced with
‘‘paragraph .71 of AS 3101, Reports on
Audited Financial Statements.’’
p. In footnote 16 to paragraph .12, the
reference to ‘‘section 711.10’’ is replaced
with ‘‘AS 4101.10.’’
q. In footnote 18 to paragraph .13, the
reference to ‘‘section 508.22–.34’’ is
replaced with ‘‘AS 3101.22–.34.’’
r. In the second sentence of item 4 of
paragraph .16:
• The reference to ‘‘section 316’’ is
replaced with ‘‘AS 2401.’’
• The reference to ‘‘Auditing
Standard No. 18’’ is replaced with ‘‘AS
2410.’’
s. The second sentence in item 1 of
paragraph .17 is deleted.
AU sec. 9333, ‘‘Management
Representations: Auditing
Interpretations of Section 333’’
AU sec. 9333, ‘‘Management
Representations: Auditing
Interpretations of Section 333,’’ is
amended as follows:
a. The section number ‘‘AU Section
9333’’ is replaced with ‘‘AI 21.’’
b. The title ‘‘Management
Representations: Auditing
Interpretations of Section 333’’ is
replaced with ‘‘Management
Representations: Auditing
Interpretations of AS 2805.’’
c. In the first sentence of paragraph
.01, the reference to ‘‘Section 333’’ is
replaced with ‘‘AS 2805.’’
d. In paragraph .02, each reference to
‘‘Section 317’’ or ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
e. In the second sentence of paragraph
.03, the reference to ‘‘Section 333’’ is
replaced with ‘‘AS 2805.’’
AU sec. 336, ‘‘Using the Work of a
Specialist’’
SAS No. 73, ‘‘Using the Work of a
Specialist’’ (AU sec. 336, ‘‘Using the
Work of a Specialist’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
336’’ is replaced with ‘‘AS 1210.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
11)’’ is deleted.
c. In paragraph .01:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In footnote 1, the reference to
‘‘Auditing Standard No. 10’’ is replaced
with ‘‘AS 1201.’’
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
d. In the second sentence of paragraph
.02, the reference to ‘‘section 337’’ is
replaced with ‘‘AS 2505.’’
e. In paragraph .04:
• The reference to ‘‘section 623’’ is
replaced with ‘‘AS 3305.’’
• In footnote 3, the reference to
‘‘section 623, Special Reports’’ is
replaced with ‘‘AS 3305.’’
f. In the last sentence of paragraph
.05, the reference to ‘‘Auditing Standard
No. 10, Supervision of the Audit
Engagement’’ is replaced with ‘‘AS
1201.’’
g. In footnote 4 to paragraph .07c, the
parenthetic sentence is deleted.
h. In the last sentence of paragraph
.13, the parenthetic reference to ‘‘section
508, Reports on Audited Financial
Statements, paragraphs .22 and .23’’ is
replaced with ‘‘paragraphs .22 and .23
of AS 3101, Reports on Audited
Financial Statements.’’
i. In the last sentence of paragraph
.14, the parenthetic reference to ‘‘section
508.35, .36, and .41’’ is replaced with
‘‘AS 3101.35, .36, and .41.’’
AU sec. 9336, ‘‘Using the Work of a
Specialist: Auditing Interpretations of
Section 336’’
AU sec. 9336, ‘‘Using the Work of a
Specialist: Auditing Interpretations of
Section 336,’’ as amended, is amended
as follows:
a. The section number ‘‘AU Section
9336’’ is replaced with ‘‘AI 11.’’
b. The title ‘‘Using the Work of a
Specialist: Auditing Interpretations of
Section 336’’ is replaced with ‘‘Using
the Work of a Specialist: Auditing
Interpretations of AS 1210.’’
c. In the first sentence of paragraph
.04, the reference to ‘‘Section 336, Using
the Work of a Specialist, paragraph .06’’
is replaced with ‘‘Paragraph .06 of AS
1210, Using the Work of a Specialist.’’
d. In the second sentence of paragraph
.11, the reference to ‘‘Section 336.13’’ is
replaced with ‘‘AS 1210.13.’’
e. In the fourth sentence of paragraph
.15, the reference to ‘‘Paragraph 6 of
Auditing Standard No. 15’’ is replaced
with ‘‘Paragraph .06 of AS 1105.’’
f. In the second sentence of paragraph
.17, the reference to ‘‘section 336.09’’ is
replaced with ‘‘AS 1210.09.’’
g. In paragraph .21:
• In footnote 14, the reference to
‘‘section 336.13’’ is replaced with ‘‘AS
1210.13.’’
• In the third sentence, the reference
to ‘‘section 508, Reports on Audited
Financial Statements, paragraphs .35
through .60’’ is replaced with
‘‘paragraphs .35 through .60 of AS 3101,
Reports on Audited Financial
Statements.’’
• In the last sentence, the reference to
‘‘section 508.22–.26 and 508.61–.63.’’ is
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replaced with ‘‘AS 3101.22–.26 and AS
3101.61–.63.’’
AU sec. 337, ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments’’
SAS No. 12, ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments’’ (AU sec. 336,
‘‘Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
337’’ is replaced with ‘‘AS 2505.’’
b. Footnote 1 to the title of the
standard is deleted.
c. In paragraph .01, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
d. In footnote 2 to paragraph .03:
• The first sentence is deleted.
• In the last sentence, the term ‘‘SAS’’
is replaced with ‘‘auditing standard.’’
e. In footnote 4 to the subtitle before
paragraph .08 (‘‘Inquiry of a Client’s
Lawyer’’), the parenthetic reference to
‘‘section 337A’’ is replaced with ‘‘AS
2505A.’’
f. In footnote 6 to the subtitle before
paragraph .12 (‘‘Limitations on the
Scope of a Lawyer’s Response’’), the
parenthetic reference to ‘‘section 337C’’
is replaced with ‘‘AS 2505C.’’
g. In the first sentence of paragraph
.13, the parenthetic reference to ‘‘section
508.22 and .23’’ is replaced with
‘‘paragraphs .22 and .23 of AS 3101,
Reports on Audited Financial
Statements.’’
h. In the last sentence of paragraph
.14, the reference to ‘‘section 508.45
through .49’’ is replaced with ‘‘AS
3101.45 through .49.’’
i. The section number ‘‘AU Section
337A’’ is replaced with ‘‘AS 2505A.’’
j. In AU Section 337A, the paragraph
number ‘‘.01’’ is deleted.
k. Exhibit I, AU sec. 337B and related
footnotes are deleted.
l. The section number ‘‘AU Section
337C’’ is replaced with ‘‘AS 2505C.’’
AU sec. 9337, ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments: Auditing
Interpretation of Section 337’’
AU sec. 9337, ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments: Auditing
Interpretation of Section 337,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9337’’ is replaced with ‘‘AI 17.’’
b. The title ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments: Auditing
Interpretations of Section 337’’ is
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replaced with ‘‘Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments: Auditing
Interpretation of AS 2505.’’
c. In the first sentence of paragraph
.01, the reference to ‘‘section 337’’ is
replaced with ‘‘AS 2505.’’
d. In the first sentence of paragraph
.04, the reference to ‘‘[section 337A] to
section 337, Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments,’’ is replaced with ‘‘[AS
2505A] to AS 2505.’’
e. In the first sentence of paragraph
.05, the reference to ‘‘Section 560.10
through .12 indicates’’ is replaced with
‘‘Paragraphs .10 through .12 of AS 2801,
Subsequent Events, indicate.’’
f. In the first sentence of paragraph
.06, the reference to ‘‘[section 337A] to
section 337, Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments,’’ is replaced with ‘‘[AS
2505A] to AS 2505.’’
g. In the first sentence of paragraph
.07, the reference to ‘‘[section 337A] to
section 337’’ is replaced with ‘‘[AS
2505A] to AS 2505.’’
h. In the first sentence of paragraph
.08, the reference to ‘‘Section 337,
Inquiry of a Client’s Lawyer Concerning
Litigation, Claims, and Assessments,
paragraph .05c,’’ is replaced with ‘‘AS
2505.05c.’’
i. In the second sentence of paragraph
.09:
• The parenthetic reference to
‘‘section 337.13’’ is replaced with ‘‘AS
2505.13.’’
• The reference to ‘‘section 337.05c’’
is replaced with ‘‘AS 2505.05c.’’
j. In the first sentence of paragraph
.10, the reference to ‘‘[section 337A] of
section 337, Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments,’’ is replaced with ‘‘[AS
2505A] of AS 2505.’’
k. In paragraph .11:
• In the first sentence, the reference
to ‘‘Section 337.09,’’ is replaced with
‘‘AS 2505.09.’’
• In the second sentence, the
reference to ‘‘section 337’’ is replaced
with ‘‘AS 2505.’’
l. In the last sentence of footnote 1 to
paragraph .13:
• The reference to ‘‘section 337’’ is
replaced with ‘‘AS 2505.’’
• The bracketed reference to ‘‘section
337C’’ is replaced with ‘‘AS 2505C.’’
m. In footnote 2 to paragraph .14, the
parenthetic reference to ‘‘sections
9337.01–.05’’ is replaced with
‘‘paragraphs .01–.05.’’
n. In the first sentence of paragraph
.15, the reference to ‘‘Section 337.06’’ is
replaced with ‘‘AS 2505.06.’’
o. In paragraph .16:
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• In the first sentence, the reference
to ‘‘Section 337’’ is replaced with ‘‘AS
2505.’’
• In the second sentence:
• The reference to ‘‘section 337.05
and .07’’ is replaced with ‘‘AS 2505.05
and .07.’’
• The reference to ‘‘section 333,
Management Representations,
paragraph .06m and n’’ is replaced with
‘‘paragraphs .06o and p of AS 2805,
Management Representations.’’
p. In the first sentence of paragraph
.18, the reference to ‘‘Section 337,
Inquiry of a Client’s Lawyer Concerning
Litigation, Claims, and Assessments,
paragraph .09d(2),’’ is replaced with
‘‘AS 2505.09d(2).’’
q. In paragraph .19:
• In the first sentence, the reference
to ‘‘[section 337C] to section 337’’ is
replaced with ‘‘[AS 2505C] to AS 2505.’’
• In the second sentence, the
bracketed reference to ‘‘section 337C’’ is
replaced with ‘‘AS 2505C.’’
r. In the first sentence of paragraph
.22:
• The reference to ‘‘section 337.14’’ is
replaced with ‘‘AS 2505.14.’’
• The bracketed reference to ‘‘section
337C’’ is replaced with ‘‘AS 2505C.’’
s. In the last sentence of paragraph
.23, the reference to ‘‘section 508.45
through .49’’ is replaced with
‘‘paragraphs .45 through .49 of AS 3101,
Reports on Audited Financial
Statements,.’’
t. In the first sentence of paragraph
.24, the reference to ‘‘Section 337.06’’ is
replaced with ‘‘AS 2505.06.’’
u. In the first sentence of paragraph
.25, the reference to ‘‘Section 337.08’’ is
replaced with ‘‘AS 2505.08.’’
v. In footnote 4 to paragraph .26, the
reference to ‘‘section 337.08’’ is replaced
with ‘‘AS 2505.08.’’
w. In paragraph .32:
• In the third sentence, the bracketed
reference to ‘‘section 337C’’ is replaced
with ‘‘AS 2505C.’’
• In footnote 5, each bracketed
reference to ‘‘section 337C’’ is replaced
with ‘‘AS 2505C.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 341, ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern’’
SAS No. 59, ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as Going Concern’’ (AU sec.
341, ‘‘The Auditor’s Consideration of an
Entity’s Ability to Continue as a Going
Concern’’), as amended, is amended as
follows:
a. The section number ‘‘AU Section
341’’ is replaced with ‘‘AS 2415.’’
b. The title ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern’’ is
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replaced with ‘‘Consideration of an
Entity’s Ability to Continue as a Going
Concern.’’
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
340)’’ is deleted.
d. In paragraph .01:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In the last sentence of footnote 1,
the parenthetic reference to ‘‘section
9508.33–.38’’ is replaced with ‘‘AI
23.33–.38.’’
e. In the last sentence of paragraph
.02, the reference to ‘‘Auditing Standard
No. 15’’ is replaced with ‘‘AS 1105.’’
f. In the first sentence of footnote 3 to
the fifth bullet of paragraph .10, the
phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘PCAOB
auditing standards.’’
g. In the last sentence of footnote 4 to
paragraph .12, the parenthetic reference
to ‘‘section 508’’ is replaced with ‘‘AS
3101.’’
h. In the last sentence of paragraph
.14, the reference to ‘‘section 508,
Reports on Audited Financial
Statements’’ is replaced with ‘‘AS
3101.’’
i. In the last sentence of paragraph
.15, the reference to ‘‘section 508’’ is
replaced with ‘‘AS 3101.’’
j. In the first sentence of paragraph
.17A, the reference to ‘‘Paragraph 17 of
Auditing Standard No. 16’’ is replaced
with ‘‘Paragraph .17 of AS 1301.’’
AU sec. 9341, ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern: Auditing
Interpretations of Section 341’’
AU sec. 9341, ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern: Auditing
Interpretations of Section 341,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9341’’ is replaced with ‘‘AI 15.’’
b. The title ‘‘The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern: Auditing
Interpretations of Section 341’’ is
replaced with ‘‘Consideration of an
Entity’s Ability to Continue as a Going
Concern: Auditing Interpretations of AS
2415.’’
c. In paragraph .02:
• In footnote 2, the reference to
‘‘Section 530, Dating of the Independent
Auditor’s Report, paragraph .05’’ is
replaced with ‘‘Paragraph .05 of AS
3110, Dating of the Independent
Auditor’s Report.’’
• In the second bullet, the reference
to ‘‘section 560, Subsequent Events,
paragraph .12’’ is replaced with
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‘‘paragraph .12 of AS 2801, Subsequent
Events.’’
• In the third bullet, the reference to
‘‘section 341, The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern,
paragraphs .06 through .11,’’ is replaced
with ‘‘paragraphs .06 through .11 of AS
2415, Consideration of an Entity’s
Ability to Continue as a Going
Concern.’’
AU sec. 342, ‘‘Auditing Accounting
Estimates’’
SAS No. 57, ‘‘Auditing Accounting
Estimates’’ (AU sec. 342, ‘‘Auditing
Accounting Estimates’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
342’’ is replaced with ‘‘AS 2501.’’
b. In the first sentence of paragraph
.01, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
c. In paragraph .07c:
• In footnote 2, the reference to
‘‘Section 411, The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’ is
replaced with ‘‘AS 2815, The Meaning
of ‘Present Fairly in Conformity with
Generally Accepted Accounting
Principles.’ ’’
• In footnote 3, the reference to
‘‘paragraph 31 of Auditing Standard No.
14’’ is replaced with ‘‘paragraph .31 of
AS 2810.’’
d. In paragraph .08b:
• In item 1, the parenthetic reference
to ‘‘Auditing Standard No. 12’’ is
replaced with ‘‘AS 2110.’’
• In item 3, the parenthetic reference
to ‘‘section 337’’ is replaced with ‘‘AS
2505.’’
e. In paragraph .11h, the parenthetic
reference to ‘‘section 336’’ is replaced
with ‘‘AS 1210.’’
f. In paragraph .14, the reference to
‘‘Paragraphs 24 through 27 of Auditing
Standard No. 14, Evaluating Audit
Results,’’ is replaced with ‘‘AS 2810.24
through .27.’’
AU sec. 9342, ‘‘Auditing Accounting
Estimates: Auditing Interpretations of
Section 342’’
AU sec. 9342, ‘‘Auditing Accounting
Estimates: Auditing Interpretations of
Section 342,’’ as amended, is amended
as follows:
a. The section number ‘‘AU Section
9342’’ is replaced with ‘‘AI 16.’’
b. The title ‘‘Auditing Accounting
Estimates: Auditing Interpretations of
Section 342’’ is replaced with ‘‘Auditing
Accounting Estimates: Auditing
Interpretations of AS 2501.’’
c. In the first sentence of paragraph
.06—the example paragraph—the phrase
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‘‘auditing standards generally accepted
in the United States of America’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
d. In the last sentence of paragraph
.07, the reference to ‘‘Auditing Standard
No. 17’’ is replaced with ‘‘AS 2701.’’
e. In the last sentence of paragraph
.09, the reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
f. In the second flowchart of
paragraph .10, ‘‘Auditing Guidance for
Fair Value Information: Required and
Voluntary Information’’:
• The reference to ‘‘paragraph 10 of
Auditing Standard No. 17, Auditing
Supplemental Information
Accompanying Audited Financial
Statements,’’ is replaced with ‘‘AS
2701.10.’’
• The reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
• The reference to ‘‘interpretation 11
of section 623, ‘Reporting on CurrentValue Financial Statements That
Supplement Historical Cost Financial
Statements in a General-Use
Presentation of Real Estate Entities’ ’’ is
replaced with ‘‘AI 24, Special Reports:
Auditing Interpretations of AS 3305,
interpretation 11, ‘Reporting on CurrentValue Financial Statements That
Supplement Historical Cost Financial
Statements in a General-Use
Presentation of Real Estate Entities.’ ’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 350, ‘‘Audit Sampling’’
SAS No. 39, ‘‘Audit Sampling’’ (AU
sec. 350, ‘‘Audit Sampling’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
350’’ is replaced with ‘‘AS 2315.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes Statement
of Auditing Standards No. 1, sections
320A, and 320B.)’’ is deleted.
c. In the last sentence of footnote 2 to
paragraph .02, the reference to
‘‘Auditing Standard No. 14’’ is replaced
with ‘‘AS 2810.’’
d. In the note to paragraph .06:
• The reference to ‘‘Auditing
Standard No. 15’’ is replaced with ‘‘AS
1105.’’
• The reference to ‘‘Auditing
Standard No. 14, Evaluating Audit
Results,’’ is replaced with ‘‘AS 2810.’’
e. In the first sentence of paragraph
.07, the phrase ‘‘referred to in the third
standard of field work’’ is deleted.
f. In the note to paragraph .09, the
reference to ‘‘Auditing Standard No. 8’’
is replaced with ‘‘AS 1101.’’
g. In the last sentence of paragraph
.11, the parenthetic reference to ‘‘section
161, The Relationship of Generally
Accepted Auditing Standards to Quality
Control Standards’’ is replaced with
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‘‘AS 1110, Relationship of Auditing
Standards to Quality Control
Standards.’’
h. In paragraph .15, the reference to
‘‘Auditing Standard No. 9’’ is replaced
with ‘‘AS 2101.’’
i. In the first sentence of paragraph
.18A, the reference to ‘‘Paragraphs 8–9
of Auditing Standard No. 11’’ is
replaced with ‘‘Paragraphs .08–.09 of AS
2105.’’
j. The first sentence in paragraph .19
is deleted.
k. In footnote 6 to paragraph .26, the
reference to ‘‘Paragraphs 10 through 23
of Auditing Standard No. 14, Evaluating
Audit Results,’’ is replaced with ‘‘AS
2810.10 through .23.’’
l. In the last sentence of paragraph
.39, the reference to ‘‘Paragraphs 44
through 46 of Auditing Standard No.
13’’ is replaced with ‘‘Paragraphs .44
through .46 of AS 2301.’’
m. In the note to paragraph .44, the
reference to ‘‘Paragraph 47 of Auditing
Standard No. 13, The Auditor’s
Responses to the Risks of Material
Misstatement’’ is replaced with ‘‘AS
2301.47.’’
AU sec. 390, ‘‘Consideration of Omitted
Procedures After the Report Date’’
SAS No. 46, ‘‘Consideration of
Omitted Procedures After the Report
Date’’ (AU sec. 390, ‘‘Consideration of
Omitted Procedures After the Report
Date’’), is amended as follows:
a. The section number ‘‘AU Section
390’’ is replaced with ‘‘AS 2901.’’
b. In the last sentence of paragraph
.01, the reference to ‘‘section 561’’ is
replaced with ‘‘AS 2905, Subsequent
Discovery of Facts Existing at the Date
of the Auditor’s Report.’’
c. In footnote 2 to paragraph .02, the
reference to ‘‘section 161, The
Relationship of Generally Accepted
Auditing Standards to Quality Control
Standards, paragraph .02’’ is replaced
with ‘‘paragraph .02 of AS 1110,
Relationship of Auditing Standards to
Quality Control Standards.’’
d. In paragraph .06, the reference to
‘‘section 561.05–.09’’ is replaced with
‘‘AS 2905.05–.09.’’
AU sec. 410, ‘‘Adherence to Generally
Accepted Accounting Principles’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ (AU sec.
410, ‘‘Adherence to Generally Accepted
Accounting Principles’’), as amended, is
rescinded.
AU sec. 9410, ‘‘Adherence to Generally
Accepted Accounting Principles:
Auditing Interpretations of Section 410’’
AU sec. 9410, ‘‘Adherence to
Generally Accepted Accounting
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Principles: Auditing Interpretations of
Section 410,’’ as amended, is rescinded.
AU sec. 411, ‘‘The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’
SAS No. 69, ‘‘The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’ (AU
sec. 411, ‘‘The Meaning of Present Fairly
in Conformity With Generally Accepted
Accounting Principles’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
411’’ is replaced with ‘‘AS 2815.’’
b. The title ‘‘The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles’’ is
replaced with ‘‘The Meaning of ‘Present
Fairly in Conformity with Generally
Accepted Accounting Principles.’ ’’
c. Footnote * to the title of the
standard is deleted.
d. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
5)’’ is deleted.
e. In the second sentence of paragraph
.01, the parenthetic reference to ‘‘section
508.08h’’ is replaced with ‘‘paragraph
.08h of AS 3101, Reports on Audited
Financial Statements.’’
f. In paragraph .04:
• In item (c), the parenthetic
reference to ‘‘paragraph 31 of Auditing
Standard No. 14’’ is replaced with
‘‘paragraph .31 of AS 2810.’’
• In item (d), the parenthetic
reference to ‘‘paragraph 31 of Auditing
Standard No. 14, Evaluating Audit
Results’’ is replaced with ‘‘AS 2810.31.’’
• In the last sentence of footnote 1:
• The parenthetic reference to
‘‘sections 150.04’’ is deleted.
• The parenthetic reference to
‘‘Auditing Standard No. 11’’ is replaced
with ‘‘AS 2105.’’
• The parenthetic reference to
‘‘508.36’’ is replaced with ‘‘3101.36.’’
g. In the second sentence of paragraph
.08:
• The reference to ‘‘Section 544, Lack
of Conformity With Generally Accepted
Accounting Principles, paragraph .04’’ is
replaced with ‘‘Paragraph .04 of AS
3310, Special Reports on Regulated
Companies,.’’
• The reference to ‘‘section 623,
Special Reports’’ is replaced with ‘‘AS
3305, Special Reports,.’’
AU sec. 504, ‘‘Association With
Financial Statements’’
SAS No. 26, ‘‘Association With
Financial Statements’’ (AU sec. 504,
‘‘Association With Financial
Statements’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
504’’ is replaced with ‘‘AS 3320.’’
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b. In the title, the ‘‘W’’ in the word
‘‘With’’ is changed to lower case.
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes Statement
on Auditing Standards No. 1, Sections
516, 517, and 518 and Statement on
Auditing Standards No. 15, paragraph
13–15)’’ is deleted.
d. In paragraph .01:
• The introductory phrase ‘‘The
fourth standard of reporting is:’’ is
deleted.
• In the last sentence, the phrase
‘‘fourth reporting standard’’ is replaced
with ‘‘preceding paragraph.’’
e. In paragraph .02:
• In the first sentence, the phrase ‘‘the
fourth reporting standard’’ is replaced
with ‘‘paragraph .01.’’
• In the last sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
f. In paragraph .04:
• In the second sentence, the
reference to ‘‘section 508’’ is replaced
with ‘‘AS 3101.’’
• In the last sentence, the reference to
‘‘section 722, Interim Financial
Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
g. In paragraph .05:
• Following the first sentence, the
parenthetic phrase ‘‘, city and state or
country,’’ is added following
‘‘(Signature.’’
• In the second sentence, the phrase
‘‘the fourth standard of reporting’’ is
replaced with ‘‘paragraph .01.’’
h. In paragraph .07:
• The parenthetic reference to
‘‘section 623.02–.10’’ is replaced with
‘‘paragraphs .02–.10 of AS 3305.’’
• Following the second sentence, the
parenthetic phrase ‘‘, city and state or
country,’’ is added following
‘‘(Signature.’’
i. In paragraph .08:
• In the first sentence, the phrase
‘‘The second general standard requires
that’’ is deleted.
• The quotation marks included in
the first sentence are deleted.
j. In the first sentence of paragraph
.09, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
k. Following the last sentence of
paragraph .10, the parenthetic phrase ‘‘,
city and state or country,’’ is added
following ‘‘(Signature.’’
l. In the first sentence of paragraph
.15, the parenthetic reference to ‘‘section
530.06–.08’’ is replaced with
‘‘paragraphs .06–.08 of AS 3110, Dating
of the Independent Auditor’s Report.’’
m. In paragraph .18, the phrase
‘‘applicable standards established by the
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American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the PCAOB.’’
n. In paragraph .19:
• The parenthetic reference to
‘‘section 634’’ is replaced with ‘‘AS
6101.’’
• Footnote * is deleted.
o. In paragraph [.20], the parenthetic
reference to ‘‘section 634’’ is replaced
with ‘‘AS 6101.’’
AU sec. 9504, ‘‘Association With
Financial Statements: Auditing
Interpretations of Section 504’’
AU sec. 9504, ‘‘Association With
Financial Statements: Auditing
Interpretations of Section 504,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9504’’ is replaced with ‘‘AI 25.’’
b. The title ‘‘Association With
Financial Statements: Auditing
Interpretations of Section 504’’ is
replaced with ‘‘Association with
Financial Statements: Auditing
Interpretations of AS 3320.’’
c. In paragraph .07, the reference to
‘‘section 722’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information,.’’
d. In paragraph .15:
• In the first sentence, the reference
to ‘‘Section 150.02’’ is replaced with
‘‘Paragraph .04 of AS 3101, Reports on
Audited Financial Statements,.’’
• In the second sentence, the
reference to ‘‘Section 504.03’’ is
replaced with ‘‘Paragraph .03 of AS
3320, Association with Financial
Statements,.’’
e. In the first sentence of paragraph
.19, the reference to ‘‘Section 504’’ is
replaced with ‘‘AS 3320.’’
f. In paragraph .20:
• In the first sentence, the reference
to ‘‘Section 504’’ is replaced with ‘‘AS
3320.’’
• The third and fourth sentences are
deleted.
g. Paragraph .21 is replaced with
‘‘PCAOB Rules establish requirements
regarding auditor independence.’’
h. In the first sentence of paragraph
.22, the reference to ‘‘Section 504.10’’ is
replaced with ‘‘AS 3320.10.’’
AU sec. 508, ‘‘Reports on Audited
Financial Statements’’
SAS No. 58, ‘‘Reports on Audited
Financial Statements’’ (AU sec. 508,
‘‘Reports on Audited Financial
Statements’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
508’’ is replaced with ‘‘AS 3101.’’
b. Footnote * to the title of the
standard is deleted.
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c. In the references before paragraph
.01, the phrase ‘‘(Supersedes sections
505, 509, 542, 545, and 546)’’ is deleted.
d. In paragraph .01:
• In footnote 1:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• The second sentence is deleted.
• In the note:
• In the second sentence:
• The reference to ‘‘paragraphs 85–98
of PCAOB Auditing Standard No. 5’’ is
replaced with ‘‘paragraphs .85–.98 of AS
2201.’’
• The reference to ‘‘Appendix C,
Special Reporting Situations, of PCAOB
Auditing Standard No. 5, An Audit of
Internal Control Over Financial
Reporting That Is Integrated with An
Audit of Financial Statements’’ is
replaced with ‘‘Appendix C, Special
Reporting Situations, of AS 2201.’’
• In the last sentence, the reference to
‘‘paragraphs 86–88 of PCAOB Auditing
Standard No. 5, An Audit of Internal
Control Over Financial Reporting That
Is Integrated with An Audit of Financial
Statements’’ is replaced with ‘‘AS
2201.86–.88.’’
e. In paragraph .02:
• The reference to ‘‘section 504,
Association With Financial Statements’’
is replaced with ‘‘AS 3320, Association
with Financial Statements.’’
• The reference to ‘‘section 623’’ is
replaced with ‘‘AS 3305.’’
f. In paragraph .03:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• The second sentence is deleted.
• In the last sentence, the phrase
‘‘fourth reporting standard’’ is replaced
with ‘‘requirements in paragraph .04.’’
g. In paragraph .04, the introductory
phrase ‘‘The fourth standard of
reporting is as follows:’’ is deleted.
h. In paragraph .05:
• In the first sentence, the phrase
‘‘fourth standard’’ is replaced with
‘‘requirements in paragraph .04.’’
• In the second sentence, the phrase
‘‘the fourth reporting standard’’ is
replaced with ‘‘paragraph .04.’’
• In the third sentence, the
parenthetic phrase ‘‘fourth standard of
reporting’’ is replaced with
‘‘requirements in paragraph .04.’’
i. In the last sentence of paragraph
.07, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
j. In the last sentence of footnote 3 to
paragraph .08a, the phrase ‘‘section 504,
Association With Financial
Statements,’’ is replaced with ‘‘AS
3320.’’
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k. In paragraph .08d:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
l. In the first sentence of footnote 5 to
item (3) of paragraph .08f, the reference
to ‘‘Section 411, The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles,
paragraphs .03 and .04,’’ is replaced
with ‘‘Paragraphs .03 and .04 of AS
2815, The Meaning of ‘Present Fairly in
Conformity with Generally Accepted
Accounting Principles,.’ ’’
m. Footnote 6 to paragraph .08h is
deleted.
n. Paragraph ‘‘.08k’’ is replaced with
‘‘.08l.’’
o. Paragraph ‘‘.08j’’ is replaced with
‘‘.08k.’’
p. Paragraph .08j is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
q. Footnote 6A is added to the end of
the added paragraph .08j:
See SEC Rule 2–02(a) of Regulation S–
X, 17 C.F.R. § 210.2–02(a).
r. In the first sentence of footnote 7 to
paragraph .08j, the reference to ‘‘section
530’’ is replaced with ‘‘AS 3110.’’
s. In the first example report following
paragraph .08j:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• The phrase ‘‘[City and State or
Country]’’ is added following the term
‘‘[Signature].’’
t. In the second example report
following paragraph .08j:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
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• The phrase ‘‘[City and State or
Country]’’ is added following the term
‘‘[Signature].’’
u. In the first sentence of footnote 11
to paragraph .11b, the reference to
‘‘Section 341, The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern’’ is
replaced with ‘‘AS 2415, Consideration
of an Entity’s Ability to Continue as a
Going Concern.’’
v. In the last sentence of paragraph
.11f, the parenthetic reference to
‘‘section 722, Interim Financial
Information, paragraph .50’’ is replaced
with ‘‘paragraph .50 of AS 4105,
Reviews of Interim Financial
Information.’’
w. In the last sentence of paragraph
.11g, the parenthetic reference to
‘‘section 558, Required Supplementary
Information, paragraph .02’’ is replaced
with ‘‘paragraph .02 of AS 2705,
Required Supplementary Information.’’
x. In the last sentence of paragraph
.11h, the parenthetic reference to
‘‘section 550, Other Information in
Documents Containing Audited
Financial Statements, paragraph. 04’’ is
replaced with ‘‘paragraph .04 of AS
2710, Other Information in Documents
Containing Audited Financial
Statements.’’
y. In the last sentence of paragraph
.12, the parenthetic reference to ‘‘section
543, Part of Audit Performed by Other
Independent Auditors’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
by Other Independent Auditors.’’
z. Following paragraph .13:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph in the example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
aa. In the first sentence of paragraph
.17A, the reference to ‘‘PCAOB Auditing
Standard No. 6’’ is replaced with ‘‘AS
2820.’’
bb. In the first sentence of paragraph
.22, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
cc. In the third sentence of footnote 14
to paragraph .24, the reference to
‘‘section 331, Inventories’’ is replaced
with ‘‘AS 2510, Auditing Inventories.’’
dd. Following paragraph .26:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
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Independent Registered Public
Accounting Firm.’’
• In the first sentence of the first
paragraph in the example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
ee. In the fourth sentence of paragraph
.28, the reference to ‘‘section 530,
Dating of the Independent Auditor’s
Report,’’ is replaced with ‘‘AS 3110.’’
ff. Following paragraph .34:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph in the example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
gg. In the first sentence of paragraph
.35, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
hh. Following paragraph .39, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
ii. In the third sentence of paragraph
.41, the reference to ‘‘Statement on
Auditing Standards’’ is replaced with
‘‘PCAOB standard.’’
jj. Following paragraph .42, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
kk. Following paragraph .44, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
ll. In the last sentence of paragraph
.49, the parenthetic reference to
‘‘paragraph 13 of Auditing Standard No.
14’’ is replaced with ‘‘paragraph .13 of
AS 2810.’’
mm. Following paragraph .52, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
nn. Following paragraph .60, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
oo. In the first sentence of footnote 20
to paragraph .62, the reference to
‘‘Section 504, Association With
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Financial Statements, paragraph .05’’ is
replaced with ‘‘AS 3320.05.’’
pp. Following paragraph .63:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the second sentence of footnote
21 to the example report, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
qq. In paragraph .65:
• In the first sentence, the phrase
‘‘The fourth standard of reporting’’ is
replaced with ‘‘Paragraph .04.’’
• In the second sentence, the phrase
‘‘the fourth reporting standard’’ is
replaced with ‘‘paragraph .04.’’
• The parenthetic reference to
‘‘section 530, Dating of the Independent
Auditor’s Report, paragraph .01’’ is
replaced with ‘‘AS 3110.01.’’
rr. In the first sentence of footnote 23
to paragraph .65, the parenthetic
reference to ‘‘section 530, Dating of the
Independent Auditor’s Report,
paragraphs .06 through .08’’ is replaced
with ‘‘AS 3110.06 through .08.’’
ss. In the second sentence of
paragraph .66, the parenthetic reference
to ‘‘paragraph 31 of Auditing Standard
No. 14, Evaluating Audit Results’’ is
replaced with ‘‘AS 2810.31.’’
tt. Following paragraph .67:
• The heading ‘‘Independent
Auditor’s Report’’ above each example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the first
paragraph in the example report titled,
‘‘Standard Report on the Current-Year
Financial Statements With a Disclaimer
of Opinion on the Prior-Year Statements
of Income, Retained Earnings, and Cash
Flows,’’ the phrase ‘‘auditing standards
generally accepted in the United States
of America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the last sentence of footnote 25
to the example report titled, ‘‘Standard
Report on the Current-Year Financial
Statements With a Disclaimer of
Opinion on the Prior-Year Statements of
Income, Retained Earnings, and Cash
Flows,’’ the reference to ‘‘PCAOB
Auditing Standard No. 6, Evaluating
Consistency of Financial Statements,’’ is
replaced with ‘‘AS 2820.’’
uu. Following paragraph .69, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
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vv. In the sixth sentence of paragraph
.71, the reference to ‘‘section 543, Part
of Audit Performed by Other
Independent Auditors, paragraphs .10
through .12’’ is replaced with ‘‘AS
1205.10 through .12.’’
ww. In the first sentence of footnote
28 to paragraph .71, the reference to
‘‘section 333’’ is replaced with ‘‘AS
2805.’’
xx. In paragraph .73, the parenthetic
reference to ‘‘section 530, Dating of the
Independent Auditor’s Report,
paragraph .05’’ is replaced with ‘‘AS
3110.05.’’
yy. Following paragraph .74, the
heading ‘‘Independent Auditor’s
Report’’ above the example report is
replaced with ‘‘Report of Independent
Registered Public Accounting Firm.’’
AU sec. 9508, ‘‘Reports on Audited
Financial Statements: Auditing
Interpretations of Section 508’’
AU sec. 9508, ‘‘Reports on Audited
Financial Statements: Auditing
Interpretations of Section 508,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9508’’ is replaced with ‘‘AI 23.’’
b. The title ‘‘Reports on Audited
Financial Statements: Auditing
Interpretations of Section 508’’ is
replaced with ‘‘Reports on Audited
Financial Statements: Auditing
Interpretations of AS 3101.’’
c. In the first sentence of paragraph
.01, the reference to ‘‘Section 508,
Reports on Audited Financial
Statements, paragraph .24’’ is replaced
with ‘‘Paragraph .24 of AS 3101, Reports
on Audited Financial Statements,.’’
d. In paragraph .02:
• In the first sentence, the reference
to ‘‘section 331, Inventories, paragraphs
.09–.12’’ is replaced with ‘‘paragraphs
.09–.12 of AS 2510, Auditing
Inventories.’’
• In the last sentence, the reference to
‘‘Section 331.09’’ is replaced with ‘‘AS
2510.09.’’
e. In the first sentence of paragraph
.03, the reference to ‘‘Section 331.10 and
.11’’ is replaced with ‘‘AS 2510.10 and
.11.’’
f. In the first sentence of paragraph
.04:
• The reference to ‘‘Section 331.12’’ is
replaced with ‘‘AS 2510.12.’’
• The reference to ‘‘section 331.09–
.11’’ is replaced with ‘‘AS 2510.09–.11.’’
g. In paragraph .36:
• In the first sentence of the second
paragraph of the Report on Single Year
Financial Statements in Year of
Adoption of Liquidation Basis example
report, the phrase ‘‘auditing standards
generally accepted in the United States
of America’’ is replaced with ‘‘the
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standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the first sentence of the second
paragraph of the Report on Comparative
Financial Statements in Year of
Adoption of Liquidation Basis example
report, the phrase ‘‘auditing standards
generally accepted in the United States
of America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
h. In the second sentence of paragraph
.52, the reference to ‘‘section 508,
Reports on Audited Financial
Statements,’’ is replaced with ‘‘AS
3101.’’
i. The title of auditing interpretation
14 ‘‘Reporting on Audits Conducted in
Accordance With Auditing Standards
Generally Accepted in the United States
of America and in Accordance With
International Standards on Auditing’’ is
replaced with ‘‘Reporting on Audits
Conducted in Accordance with the
Standards of the PCAOB and in
Accordance with International
Standards on Auditing.’’
j. In paragraph .56:
• In the first sentence:
• The reference to ‘‘Section 508,
Reports on Audited Financial
Statements,’’ is replaced with ‘‘AS
3101.’’
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• In the last sentence, the phrase
‘‘standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the PCAOB.’’
k. In paragraph .57:
• In the second sentence:
• The reference to ‘‘Section 508’’ is
replaced with ‘‘AS 3101.’’
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The reference to ‘‘section 508’’ is
replaced with ‘‘AS 3101.’’
• Footnote 1 is deleted.
l. In paragraph .58:
• The phrase ‘‘auditing standards
generally accepted in the United States
of America’’ is replaced with ‘‘the
standards of the PCAOB.’’
• The phrase ‘‘generally accepted in
the United States of America’’ is
replaced with ‘‘of the PCAOB.’’
m. In the first sentence of paragraph
.59:
• The first occurrence of the phrase
‘‘auditing standards generally accepted
in the United States’’ is replaced with
‘‘the standards of the PCAOB.’’
• The second occurrence of the
phrase ‘‘auditing standards generally
accepted in the United States of
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America’’ (found in the example
paragraph) is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
n. In paragraph .61:
• In the first sentence, the reference
to ‘‘section 508, Reports on Audited
Financial Statements, paragraph .74’’ is
replaced with ‘‘AS 3101.74.’’
• In the third sentence, the reference
to ‘‘section 508’’ is replaced with ‘‘AS
3101.’’
o. In paragraph .63:
• In the second sentence, the
reference to ‘‘section 508.74’’ is replaced
with ‘‘AS 3101.74.’’
• In the last sentence, the reference to
‘‘section 561’’ is replaced with ‘‘AS
2905.’’
p. In footnote 4 to paragraph .67:
• In the second sentence, the
reference to ‘‘section 315’’ is replaced
with ‘‘AS 2610.’’
• In the last sentence, the reference to
‘‘Section 561’’ is replaced with ‘‘AS
2905.’’
q. In the first sentence of paragraph
.71, the reference to ‘‘section 508.74’’ is
replaced with ‘‘AS 3101.74.’’
r. In paragraph .74, the reference to
‘‘section 508.74’’ is replaced with ‘‘AS
3101.74.’’
s. In the second sentence of paragraph
.75, the reference to ‘‘Section 508.74’’ is
replaced with ‘‘AS 3101.74.’’
t. Auditing Interpretation 16 is
deleted.
u. Footnotes 6 and 7 to paragraph .84
are deleted.
AU sec. 530, ‘‘Dating of the Independent
Auditor’s Report’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 530,
‘‘Dating of the Independent Auditor’s
Report’’ (AU sec. 530, ‘‘Dating of the
Independent Auditor’s Report’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
530’’ is replaced with ‘‘AS 3110.’’
b. In paragraph .02:
• In the last sentence, the reference to
‘‘section 711.10–.13’’ is replaced with
‘‘paragraphs .10–.13 of AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
• In footnote 1, the reference to
‘‘section 561’’ is replaced with ‘‘AS
2905, Subsequent Discovery of Facts
Existing at the Date of the Auditor’s
Report,.’’
• Footnote * is deleted.
c. In the first sentence of paragraph
.03, the parenthetic reference to ‘‘section
560.03’’ is replaced with ‘‘paragraph .03
of AS 2801, Subsequent Events.’’
d. In the first sentence of paragraph
.04, the parenthetic reference to ‘‘section
560.05’’ is replaced with ‘‘AS 2801.05.’’
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e. In the last sentence of paragraph
.05, the reference to ‘‘section 560.12’’ is
replaced with ‘‘AS 2801.12.’’
f. In paragraph .06:
• In the fifth sentence:
• The reference to ‘‘section 711’’ is
replaced with ‘‘AS 4101.’’
• The reference to ‘‘section 508.70–
.73’’ is replaced with ‘‘paragraphs .70–
.73 of AS 3101, Reports on Audited
Financial Statements.’’
• Footnote * is deleted.
g. In the second sentence of paragraph
.07, the reference to ‘‘section 560.08’’ is
replaced with ‘‘AS 2801.08.’’
h. In the first sentence of paragraph
.08, the parenthetic reference to ‘‘section
560.05 and 560.08’’ is replaced with
‘‘AS 2801.05 and AS 2801.08.’’
AU sec. 532, ‘‘Restricting the Use of an
Auditor’s Report’’
SAS No. 87, ‘‘Restricting the Use of an
Auditor’s Report’’ (AU sec. 532,
‘‘Restricting the Use of an Auditor’s
Report’’), as amended, is rescinded.
AU sec. 543, ‘‘Part of Audit Performed
by Other Independent Auditors’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 543,
‘‘Part of Audit Performed by Other
Independent Auditors’’ (AU sec. 543,
‘‘Part of Audit Performed by Other
Independent Auditors’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
543’’ is replaced with ‘‘AS 1205.’’
b. The title ‘‘Part of Audit Performed
by Other Independent Auditors’’ is
replaced with ‘‘Part of the Audit
Performed by Other Independent
Auditors.’’
c. In paragraph .01:
• In footnote 1, the reference to
‘‘Section 315’’ is replaced with ‘‘AS
2610, Initial Audits—Communications
Between Predecessor and Successor
Auditors,.’’
• In the first note:
• The reference to ‘‘paragraphs C8–
C11’’ is replaced with ‘‘paragraphs .C8–
.C11.’’
• The reference to ‘‘PCAOB Auditing
Standard No. 5’’ is replaced with ‘‘AS
2201.’’
• In the second note:
• The reference to ‘‘AU sec. 543’’ is
replaced with ‘‘AS 1205.’’
• The reference to ‘‘Auditing
Standard No. 10’’ is replaced with ‘‘AS
1201.’’
d. Following paragraph .09:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph in the example report, the
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phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
e. In paragraph .10b, the phrase
‘‘American Institute of Certified Public
Accountants and, if appropriate,’’ is
replaced with ‘‘PCAOB and.’’
f. In item (ii) of paragraph .10c, the
phrase ‘‘generally accepted auditing
standards promulgated by the American
Institute of Certified Public
Accountants’’ is replaced with
‘‘standards of the PCAOB.’’
g. In paragraph .12, the reference to
‘‘AU sec. 543.10’’ is replaced with ‘‘AS
1205.10.’’
h. In paragraph .12a, the reference to
‘‘paragraphs 12 and 13 of PCAOB
Auditing Standard No. 3’’ is replaced
with ‘‘paragraphs .12 and .13 of AS
1215, Audit Documentation.’’
i. In paragraph .12c, the reference to
‘‘paragraph 8 of PCAOB Auditing
Standard No. 3’’ is replaced with ‘‘AS
1215.08.’’
j. In footnote 5 to paragraph .12:
• The reference to ‘‘AU sec. 324’’ is
replaced with ‘‘AS 2601, Consideration
of an Entity’s Use of a Service
Organization.’’
• The reference to ‘‘section 543.12’’ is
replaced with ‘‘AS 1205.12.’’
AU sec. 9543, ‘‘Part of Audit Performed
by Other Independent Auditors:
Auditing Interpretations of Section 543’’
AU sec. 9543, ‘‘Part of Audit
Performed by Other Independent
Auditors: Auditing Interpretations of
Section 543,’’ as amended, is amended
as follows:
a. The section number ‘‘AU Section
9543’’ is replaced with ‘‘AI 10.’’
b. The title ‘‘Part of Audit Performed
by Other Independent Auditors:
Auditing Interpretations of Section 543’’
is replaced with ‘‘Part of the Audit
Performed by Other Independent
Auditors: Auditing Interpretations of AS
1205.’’
c. In the first sentence of paragraph
.01, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
d. In the first sentence of footnote 2
to paragraph .01, the reference to
‘‘section 543’’ is replaced with ‘‘AS
1205, Part of the Audit Performed by
Other Independent Auditors,.’’
e. In paragraph .02:
• In the first sentence, the reference
to ‘‘Section 543, Part of Audit Performed
by Other Independent Auditors,
paragraph .10,’’ is replaced with ‘‘AS
1205.10.‘‘
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• In the last sentence, the reference to
‘‘Section 543.10c(iv)’’ is replaced with
‘‘AS 1205.10c(iv).’’
f. In paragraph .04:
• In the first sentence, the reference
to ‘‘Section 543, Part of Audit Performed
by Other Independent Auditors,’’ is
replaced with ‘‘AS 1205.’’
• In the second sentence, the
reference to ‘‘Section 543.03’’ is
replaced with ‘‘AS 1205.03.’’
g. In paragraph .05:
• In the first sentence, the phrase
‘‘Section 334, Related Parties, states that
there may be inquiry of the principal
auditor regarding related parties.’’ is
deleted.
• In the second sentence:
• The phrase ‘‘In addition,’’ is
deleted.
• The ‘‘b’’ in ‘‘before’’ is capitalized.
h. In footnote 3 to paragraph .11, the
reference to ‘‘section 9543.04–.07’’ is
replaced with ‘‘paragraphs .04–.07.’’
i. In paragraph .15, the reference to
‘‘section 9543.11’’ is replaced with
‘‘paragraph .11.’’
j. In footnote 5 to paragraph .17, the
reference to ‘‘section 561’’ is replaced
with ‘‘AS 2905.’’
k. In paragraph .18:
• In the first sentence, the reference
to ‘‘section 543’’ is replaced with ‘‘AS
1205.’’
• In the last sentence, the reference to
‘‘section 543.12’’ is replaced with ‘‘AS
1205.12.’’
l. In the last sentence of paragraph
.19, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
AU sec. 544, ‘‘Lack of Conformity With
Generally Accepted Accounting
Principles’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ section 544,
‘‘Lack of Conformity With Generally
Accepted Accounting Principles’’ (AU
sec. 544, ‘‘Lack of Conformity With
Generally Accepted Accounting
Principles’’), as amended, is amended as
follows:
a. The section number ‘‘AU Section
544’’ is replaced with ‘‘AS 3310.’’
b. The title ‘‘Lack of Conformity With
Generally Accepted Accounting
Principles’’ is replaced with ‘‘Special
Reports on Regulated Companies.’’
c. In paragraph .02:
• In the third sentence, the phrase
‘‘first reporting standard’’ is replaced
with ‘‘requirement in paragraph .08h of
AS 3101, Reports on Audited Financial
Statements,.’’
• In footnote 1, the parenthetic
reference to ‘‘section 623, Special
Reports, paragraphs .02 and .10’’ is
replaced with ‘‘paragraphs .02 and .10
of AS 3305, Special Reports.’’
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d. In the last sentence of paragraph
.04:
• The parenthetic reference to
‘‘section 508, Reports on Audited
Financial Statements, paragraph .08’’ is
replaced with ‘‘AS 3101.08.’’
• The parenthetic reference to
‘‘section 508.35–.60’’ is replaced with
‘‘AS 3101.35–.60.’’
AU sec. 550, ‘‘Other Information in
Documents Containing Audited
Financial Statements’’
SAS No. 8, ‘‘Other Information in
Documents Containing Audited
Financial Statements’’ (AU sec. 550,
‘‘Other Information in Documents
Containing Audited Financial
Statements’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
550’’ is replaced with ‘‘AS 2710.’’
b. In paragraph .03:
• In the second sentence:
• The parenthetic reference to
‘‘sections 634’’ is replaced with ‘‘AS
6101, Letters for Underwriters and
Certain Other Requesting Parties.’’
• The parenthetic reference to ‘‘711’’
is replaced with ‘‘AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
• Footnote † is deleted.
• Footnote †† is deleted.
• In the last sentence:
• The parenthetic reference to
‘‘Auditing Standard No. 17’’ is replaced
with ‘‘AS 2701.’’
• The reference to ‘‘AU sec. 623’’ is
replaced with ‘‘AS 3305, Special
Reports.’’
• Footnote ** is deleted.
AU sec. 9550, ‘‘Other Information in
Documents Containing Audited
Financial Statements: Auditing
Interpretations of Section 550’’
AU sec. 9550, ‘‘Other Information in
Documents Containing Audited
Financial Statements: Auditing
Interpretations of Section 550,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9550’’ is replaced with ‘‘AI 20.’’
b. The title ‘‘Other Information in
Documents Containing Audited
Financial Statements: Auditing
Interpretations of Section 550’’ is
replaced with ‘‘Other Information in
Documents Containing Audited
Financial Statements: Auditing
Interpretations of AS 2710.’’
c. In the first sentence of paragraph
.07, the reference to ‘‘section 550, Other
Information in Documents Containing
Audited Financial Statements,
paragraph .02’’ is replaced with
‘‘paragraph .02 of AS 2710, Other
Information in Documents Containing
Audited Financial Statements,.’’
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d. In paragraph .09, each reference to
‘‘section 550’’ is replaced with ‘‘AS
2710.’’
e. In paragraph .11:
• In the second sentence, the
reference to ‘‘section 550’’ is replaced
with ‘‘AS 2710.’’
• In the last sentence, the reference to
‘‘section 550.06’’ is replaced with ‘‘AS
2710.06.’’
f. In the first sentence of paragraph
.12, the reference to ‘‘section 550, Other
Information in Documents Containing
Audited Financial Statements,
paragraph .02’’ is replaced with ‘‘AS
2710.02.’’
g. In paragraph .13:
• Each reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
• In the last sentence, the reference to
‘‘section 550.06’’ is replaced with ‘‘AS
2710.06.’’
h. In paragraph .14:
• In the second sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘PCAOB auditing
standards.’’
• In the last sentence, the reference to
‘‘section 550.06’’ is replaced with ‘‘AS
2710.06.’’
i. In paragraph .15:
• In the first sentence, the reference
to ‘‘The auditing interpretation of
section 325, Communication of Internal
Control Related Matters Noted in an
Audit, titled ‘Reporting on the Existence
of Material Weaknesses’ (section
9325.01–.07)’’ is replaced with ‘‘AI 12,
Communications About Control
Deficiencies in an Audit of Financial
Statements: Auditing Interpretations of
AS 1305, titled ‘Reporting on the
Existence of Material Weaknesses’ (AI
12.01–.07).’’
• In the first sentence of footnote 8,
the reference to ‘‘Section 325.8’’ is
replaced with ‘‘Paragraph .08 of AS
1305, Communications About Control
Deficiencies in an Audit of Financial
Statements,.’’
j. In paragraph .17:
• In the first sentence, the reference
to ‘‘section 550, Other Information in
Documents Containing Audited
Financial Statements’’ is replaced with
‘‘AS 2710.’’
• In the last sentence, each reference
to ‘‘section 550’’ is replaced with ‘‘AS
2710.’’
k. In the second sentence of paragraph
.18, the reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
AU sec. 552, ‘‘Reporting on Condensed
Financial Statements and Selected
Financial Data’’
SAS No. 42, ‘‘Reporting on
Condensed Financial Statements and
Selected Financial Data’’ (AU sec. 552,
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‘‘Reporting on Condensed Financial
Statements and Selected Financial
Data’’), as amended, is amended as
follows:
a. The section number ‘‘AU Section
552’’ is replaced with ‘‘AS 3315.’’
b. Footnote * to the title of the
standard is deleted.
c. In paragraph .01:
• In footnote 1, the reference to
‘‘section 504, Association With
Financial Statements, footnote 2’’ is
replaced with ‘‘footnote 2 of AS 3320,
Association with Financial Statements.’’
• In the last sentence, the reference to
‘‘Auditing Standard No. 17’’ is replaced
with ‘‘AS 2701.’’
d. In paragraph .02, the reference to
‘‘section 508, Reports on Audited
Financial Statements, paragraphs .41
through .44, section 623, Special
Reports, or other applicable Statements
on Auditing Standards’’ is replaced with
‘‘paragraphs .41 through .44 of AS 3101,
Reports on Audited Financial
Statements, AS 3305, Special Reports,
or other applicable PCAOB auditing
standards.’’
e. In footnote 4 to paragraph .05, the
parenthetic reference to ‘‘section 711,
Filings Under Federal Securities
Statutes’’ is replaced with ‘‘AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
f. Following paragraph .06:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the first
paragraph in the example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
g. In footnote 6 to paragraph .07:
• In the second sentence, the
parenthetic reference to ‘‘section 508,
Reports on Audited Financial
Statements, paragraphs .41 through .44’’
is replaced with ‘‘AS 3101.41 through
.44.’’
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the fourth sentence of the
example report, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
h. In paragraph .08:
• In item c of footnote 8, the
parenthetic reference to ‘‘section 722,
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Interim Financial Information,
paragraph .03’’ is replaced with
‘‘paragraph .03 of AS 4105, Reviews of
Interim Financial Information.’’
• In the example independent
auditor’s review report following
paragraph .08:
• In the first sentence of the second
paragraph, the phrase ‘‘standards
established by the American Institute of
Certified Public Accountants’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the third sentence of the second
paragraph, the phrase ‘‘generally
accepted auditing standards’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
• In the first sentence of the fourth
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board.’’
i. In footnote 11 to paragraph .09, the
reference to ‘‘section 623, Special
Reports,’’ is replaced with ‘‘AS 3305.’’
j. Following paragraph .10:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the example report:
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• In the first sentence of the fourth
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board.’’
36629
is replaced with ‘‘the standards of the
PCAOB.’’
• In the second sentence of footnote
2, the reference to ‘‘section 550’’ is
replaced with ‘‘AS 2710.’’
f. In the last sentence of paragraph
.03, the reference to ‘‘section 550,’’ is
replaced with ‘‘AS 2710.’’
g. In paragraph .04:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
• In the second sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘PCAOB auditing
standards.’’
h. In paragraph .05:
• In the first sentence, the reference
to ‘‘section 550’’ is replaced with ‘‘AS
2710.’’
• In the second sentence, the
reference to ‘‘Auditing Standard No. 17’’
is replaced with ‘‘AS 2701.’’
i. In the last sentence of footnote 6 to
paragraph .07b, the reference to ‘‘section
552, Reporting on Condensed Financial
Statements and Selected Financial Data,
paragraph .10’’ is replaced with
‘‘paragraph .10 of AS 3315, Reporting on
Condensed Financial Statements and
Selected Financial Data.’’
j. In paragraph .07c, the parenthetic
reference to ‘‘section 333’’ is replaced
with ‘‘AS 2805.’’
k. In paragraph .07d, the phrase ‘‘,
interpretations, guides, or statements of
position’’ is replaced with ‘‘or
interpretations.’’
l. In footnote 7 to paragraph .08, the
reference to ‘‘Auditing Standard No. 17,
Auditing Supplemental Information
Accompanying Audited Financial
Statements,’’ is replaced with ‘‘AS
2701.’’
m. In the second sentence of
paragraph .09, the reference to ‘‘section
550.07’’ is replaced with ‘‘AS 2701.’’
AU sec. 558, ‘‘Required Supplementary
Information’’
AU sec. 9558, ‘‘Required Supplementary
Information: Auditing Interpretations of
Section 558’’
SAS No. 52, ‘‘Omnibus Statement on
Auditing Standards—1987, Required
Supplementary Information’’ (AU sec.
558, ‘‘Required Supplementary
Information’’), as amended, is amended
as follows:
a. The section number ‘‘AU Section
558’’ is replaced with ‘‘AS 2705.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
553)’’ is deleted.
c. Footnote * is deleted.
d. Footnote 1 to paragraph .01 is
deleted.
e. In paragraph .02:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
AU sec. 9558, ‘‘Required
Supplementary Information: Auditing
Interpretations of Section 558,’’ is
amended as follows:
a. The section number ‘‘AU Section
9558’’ is replaced with ‘‘AI 19.’’
b. The title ‘‘Required Supplementary
Information: Auditing Interpretations of
Section 558’’ is replaced with ‘‘Required
Supplementary Information: Auditing
Interpretations of AS 2705.’’
c. In the last sentence of paragraph
.01, the reference to ‘‘section 558’’ is
replaced with ‘‘AS 2705.’’
d. In the second sentence of paragraph
.02, the reference to ‘‘section 558’’ is
replaced with ‘‘AS 2705.’’
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e. In the first sentence of paragraph
.04, the reference to ‘‘section 558’’ is
replaced with ‘‘AS 2705.’’
f. In the first sentence of paragraph
.06, the reference to ‘‘section 558’’ is
replaced with ‘‘AS 2705.’’
AU sec. 560, ‘‘Subsequent Events’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures,’’ section 560,
‘‘Subsequent Events’’ (AU sec. 560,
‘‘Subsequent Events’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
560’’ is replaced with ‘‘AS 2801.’’
b. In the note to paragraph .01, the
reference to ‘‘paragraphs 93–97 of
PCAOB Auditing Standard No. 5’’ is
replaced with ‘‘paragraphs .93–.97 of AS
2201.’’
c. In paragraph .09, the parenthetic
reference to ‘‘section 508.19’’ is replaced
with ‘‘paragraph .19 of AS 3101, Reports
on Audited Financial Statements.’’
d. In paragraph .12d, the parenthetic
reference to ‘‘section 337’’ is replaced
with ‘‘AS 2505, Inquiry of a Client’s
Lawyer Concerning Litigation, Claims,
and Assessments.’’
e. In paragraph .12e, the parenthetic
reference to ‘‘section 333’’ is replaced
with ‘‘AS 2805.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 561, ‘‘Subsequent Discovery of
Facts Existing at the Date of the
Auditor’s Report’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures,’’ section 561,
‘‘Subsequent Discovery of Facts Existing
at the Date of the Auditor’s Report’’ (AU
sec. 561, ‘‘Subsequent Discovery of
Facts Existing at the Date of the
Auditor’s Report’’), as amended, is
amended as follows:
a. The section number ‘‘AU Section
561’’ is replaced with ‘‘AS 2905.’’
b. In paragraph .01:
• In the first sentence of footnote 1,
the reference to ‘‘section 560’’ is
replaced with ‘‘AS 2801.’’
• In the note, the reference to
‘‘paragraph 98 of PCAOB Auditing
Standard No. 5’’ is replaced with
‘‘paragraph .98 of AS 2201.’’
c. In the first sentence of footnote 2
to paragraph .03, the reference to
‘‘section 711.10–.13’’ is replaced with
‘‘paragraphs .10–.13 of AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes,.’’
AU sec. 9561, ‘‘Subsequent Discovery of
Facts Existing at the Date of the
Auditor’s Report: Auditing
Interpretations of Section 561’’
AU sec. 9561, ‘‘Subsequent Discovery
of Facts Existing at the Date of the
Auditor’s Report: Auditing
Interpretations of Section 561,’’ is
amended as follows:
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a. The section number ‘‘AU Section
9561’’ is replaced with ‘‘AI 22.’’
b. The title ‘‘Subsequent Discovery of
Facts Existing at the Date of the
Auditor’s Report: Auditing
Interpretations of Section 561’’ is
replaced with ‘‘Subsequent Discovery of
Facts Existing at the Date of the
Auditor’s Report: Auditing
Interpretations of AS 2905.’’
c. In the second sentence of paragraph
.02, the reference to ‘‘Section 561’’ is
replaced with ‘‘AS 2905.’’
AU sec. 623, ‘‘Special Reports’’
SAS No. 62, ‘‘Special Reports’’ (AU
sec. 623, ‘‘Special Reports’’), as
amended, is amended as follows:
a. The section number ‘‘AU Section
623’’ is replaced with ‘‘AS 3305.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes section
621)’’ is deleted.
c. In the first sentence of paragraph
.02, the phrase ‘‘Generally accepted
auditing standards’’ is replaced with
‘‘The standards of the PCAOB.’’
d. In paragraph .03:
• In the first sentence, the parenthetic
reference to ‘‘section 411, The Meaning
of Present Fairly in Conformity With
Generally Accepted Accounting
Principles’’ is replaced with ‘‘AS 2815,
The Meaning of ’Present Fairly in
Conformity with Generally Accepted
Accounting Principles.’ ’’
• In the second sentence, the
parenthetic reference to ‘‘section
411.05’’ is replaced with ‘‘AS 2815.05.’’
e. In the last sentence of footnote 1 to
paragraph .05a, the reference to ‘‘section
504, Association With Financial
Statements’’ is replaced with ‘‘AS 3320,
Association with Financial Statements.’’
f. In item (1) of paragraph .05c:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
g. In footnote 5 to paragraph .05f, the
reference to ‘‘section 544, Lack of
Conformity With Generally Accepted
Accounting Principles’’ is replaced with
‘‘AS 3310, Special Reports on Regulated
Companies.’’
h. Paragraph ‘‘.05h’’ is replaced with
‘‘.05i.’’
i. Paragraph .05h is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
j. Footnote 5A is added to the end of
the added paragraph .05h:
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See SEC Rule 2–02(a) of Regulation S–
X, 17 C.F.R. § 210.2–02(a).
k. In footnote 6 to paragraph .05h, the
reference to ‘‘section 530’’ is replaced
with ‘‘AS 3110.’’
l. In paragraph .06, the parenthetic
reference to ‘‘section 508, Reports on
Audited Financial Statements,
paragraph .08’’ is replaced with
‘‘paragraph .08 of AS 3101, Reports on
Audited Financial Statements.’’
m. Following paragraph .08:
• The heading ‘‘Independent
Auditor’s Report’’ above each example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph of each example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
n. In the third sentence of paragraph
.09, the reference to ‘‘section 411, The
Meaning of Present Fairly in Conformity
With Generally Accepted Accounting
Principles, paragraph .04’’ is replaced
with ‘‘AS 2815.04.’’
o. In the last sentence of paragraph
.11, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
p. In paragraph .12:
• In the second sentence:
• The phrase ‘‘first standard of
reporting’’ is replaced with
‘‘requirement in AS 3101.08h.’’
• The phrase ‘‘ten generally accepted
auditing standards’’ is replaced with
‘‘standards of the PCAOB.’’
• In the last sentence, the phrase
‘‘The first standard of reporting’’ is
replaced with ‘‘AS 3101.08h.’’
q. In paragraph .14, the parenthetic
reference to ‘‘section 508, Reports on
Audited Financial Statements,
paragraph .64’’ is replaced with ‘‘AS
3101.64.’’
r. In item (1) of paragraph .15c:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
s. In footnote 12 to paragraph .15e, the
reference to ‘‘Paragraph 31’’ is replaced
with ‘‘Paragraph .31.’’
t. Paragraph ‘‘.15h’’ is replaced with
‘‘.15i.’’
u. Paragraph .15h is added:
The city and state (or city and
country, in the case of non-U.S.
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auditors) from which the auditor’s
report has been issued.
v. Footnote 13A is added to the end
of the added paragraph .15h:
See footnote 5A.
w. In paragraph .17, the reference to
‘‘section 508, Reports on Audited
Financial Statements, paragraph .11’’ is
replaced with ‘‘AS 3101.11.’’
x. Following paragraph .18:
• The heading ‘‘Independent
Auditor’s Report’’ above each example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph in the example report titled,
‘‘Report Relating to Accounts
Receivable,’’ the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• In the first sentence of the second
paragraph in the example report titled,
‘‘Report Relating to Amount of Sales for
the Purpose of Computing Rental,’’ the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the first sentence of the second
paragraph in the example report titled,
‘‘Report Relating to Royalties,’’ the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
• In the example report titled,
‘‘Report on Profit Participation’’:
• In the first sentence of the first
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board.’’
• In the example report titled,
‘‘Report on Federal and State Income
Taxes Included in Financial
Statements’’:
• In the first sentence of the first
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
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• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board.’’
y. In footnote 18 to paragraph .19, the
reference to ‘‘section 801, Compliance
Auditing Applicable to Governmental
Entities and Other Specified Recipients
of Governmental Financial Assistance’’
is replaced with ‘‘AS 6110, Compliance
Auditing Considerations in Audits of
Recipients of Governmental Financial
Assistance.’’
z. In the first sentence of paragraph
.20b:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
aa. Paragraph ‘‘.20g’’ is replaced with
‘‘.20h.’’
bb. Paragraph .20g is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
cc. Footnote 20A is added to the end
of the added paragraph .20g:
See footnote 5A.
dd. Following paragraph .21:
• The heading ‘‘Independent
Auditor’s Report’’ above each example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the example
report titled, ‘‘Report on Compliance
With Contractual Provisions Given in a
Separate Report,’’ the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• In the first sentence of the example
report titled, ‘‘Report on Compliance
With Regulatory Requirements Given in
a Separate Report When the Auditor’s
Report on the Financial Statements
Included an Explanatory Paragraph
Because of an Uncertainty,’’ the phrase
‘‘auditing standards generally accepted
in the United States of America’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
ee. In the fourth sentence of paragraph
.24, the parenthetic reference is deleted.
ff. In item (1) of paragraph .25c:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
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36631
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
gg. Paragraph ‘‘.25h’’ is replaced with
‘‘.25i.’’
hh. Paragraph .25h is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
ii. Footnote 28A is added to the end
of the added paragraph .25h:
See footnote 5A.
jj. Following paragraph .26:
• The heading ‘‘Independent
Auditor’s Report’’ above each example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph of the example report titled,
‘‘Report on a Schedule of Gross Income
and Certain Expenses to Meet a
Regulatory Requirement and to Be
Included in a Document Distributed to
the General Public,’’ the phrase
‘‘auditing standards generally accepted
in the United States of America’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the first sentence of the second
paragraph of the example report titled,
‘‘Report on a Statement of Assets Sold
and Liabilities Transferred to Comply
With a Contractual Agreement,’’ the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
kk. In item (1) of paragraph .29c:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic phrase ‘‘auditing
standards generally accepted in the
United States of America or U.S.
generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
ll. Paragraph ‘‘.29i’’ is replaced with
‘‘.29j.’’
mm. Paragraph .29i is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
nn. Footnote 33A is added to the end
of the added paragraph .29i:
See footnote 5A.
oo. Following paragraph .30:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
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asabaliauskas on DSK5VPTVN1PROD with NOTICES
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph of the example report, the
phrase ‘‘auditing standards generally
accepted in the United States of
America’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
pp. In the last sentence of paragraph
.31a, the reference to ‘‘section 508,
Reports on Audited Financial
Statements, paragraphs .16 through .18’’
is replaced with ‘‘AS 3101.16 through
.18.’’
qq. In footnote 39 to paragraph .31b,
the reference to ‘‘section 341, The
Auditor’s Consideration of an Entity’s
Ability to Continue as a Going Concern’’
is replaced with ‘‘AS 2415,
Consideration of an Entity’s Ability to
Continue as a Going Concern.’’
rr. In the last sentence of paragraph
.31c, the reference to ‘‘section 508,
Reports on Audited Financial
Statements, paragraphs .12 and .13’’ is
replaced with ‘‘AS 3101.12 and .13.’’
ss. In the last sentence of paragraph
.31d, the reference to ‘‘section 508,
Reports on Audited Financial
Statements, paragraphs .68 and .69’’ is
replaced with ‘‘AS 3101.68 and .69.’’
AU sec. 9623, ‘‘Special Reports:
Auditing Interpretations of Section 623’’
AU sec. 9623, ‘‘Special Reports:
Auditing Interpretations of Section
623,’’ as amended, is amended as
follows:
a. The section number ‘‘AU Section
9623’’ is replaced with ‘‘AI 24.’’
b. The title ‘‘Special Reports: Auditing
Interpretations of Section 623’’ is
replaced with ‘‘Special Reports:
Auditing Interpretations of AS 3305.’’
c. Footnote * to paragraphs [.01–.08],
is deleted.
d. In paragraph .41, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
e. In paragraph .42:
• In the first sentence, the reference
to ‘‘Section 623.11 through .18
provides’’ is replaced with ‘‘Paragraphs
.11 through .18 of AS 3305, Special
Reports, provide.’’
• In the Illustrative report:
• The first paragraph is deleted.
• The phrase ‘‘City and State or
Country’’ is added below the term
‘‘Signature.’’
f. Paragraphs .43 through .46 are
deleted.
g. The last sentence of paragraph .47
is deleted.
h. In paragraph .50, the parenthetic
reference to ‘‘section 623, Special
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Reports, paragraph .08’’ is replaced with
‘‘AS 3305.08.’’
i. In paragraph .51, each reference to
‘‘Section 623’’ or ‘‘section 623’’ is
replaced with ‘‘AS 3305.’’
j. Following paragraph .52:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the example report:
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• The phrase ‘‘[City and State or
Country]’’ is added below the term
‘‘[Signature].’’
k. In the first sentence of paragraph
.53, the parenthetic reference to ‘‘section
623.08’’ is replaced with ‘‘AS 3305.08.’’
l. In the last sentence of footnote 10
to paragraph .55:
• The reference to ‘‘section 508’’ is
replaced with ‘‘AS 3101.’’
• The phrase ‘‘, and the applicable
industry audit guide’’ is deleted.
m. In the first sentence of paragraph
.57, the reference to ‘‘section 623,
Special Reports, paragraph .29’’ is
replaced with ‘‘AS 3305.29.’’
n. Following paragraph .58:
• The heading ‘‘Independent
Auditor’s Report’’ above the example
report is replaced with ‘‘Report of
Independent Registered Public
Accounting Firm.’’
• In the example report in paragraph
.58:
• In the first sentence of the second
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board
(United States).’’
• The phrase ‘‘[City and State or
Country]’’ is added below the term
‘‘[Signature].’’
o. In paragraph .61:
• In the first sentence, the reference
to ‘‘section 623, Special Reports,
paragraph .04)’’ is replaced with ‘‘AS
3305.04.’’
• In the second sentence, the
reference to ‘‘Section 623.09’’ is
replaced with ‘‘AS 3305.09.’’
• In the last sentence, the reference to
‘‘section 411, The Meaning of Present
Fairly in Conformity With Generally
Accepted Accounting Principles,
paragraph .04’’ is replaced with
‘‘paragraph .04 of AS 2815, The
Meaning of ‘Present Fairly in
Conformity with Generally Accepted
Accounting Principles.’ ’’
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p. In paragraph .62:
• In the first sentence:
• The reference to ‘‘Section 623.02’’ is
replaced with ‘‘AS 3305.02.’’
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• In the last sentence:
• The phrase ‘‘Thus, in accordance
with the third standard of reporting,’’ is
deleted.
• The quotation marks are deleted.
• The first ‘‘i’’ in ‘‘informative’’ is
capitalized.
q. In paragraph .64:
• In the first sentence the reference to
‘‘Section 623.09 and .10’’ is replaced
with ‘‘AS 3305.09 and .10.’’
• In the last sentence, the reference to
‘‘Section 623.10’’ is replaced with ‘‘AS
3305.10.’’
r. In the third sentence of paragraph
.82, the reference to ‘‘Section 623,
Special Reports, paragraph .22’’ is
replaced with ‘‘AS 3305.22.’’
s. In the last sentence of paragraph
.83, the reference to ‘‘section 508,
Reports on Audited Financial
Statements, paragraphs .35–.44 and .58–
.60’’ is replaced with ‘‘AS 3101.35–.44
and .58–.60.’’
t. In the last sentence of paragraph
.85, the reference to ‘‘section 623.22–
.26’’ is replaced with ‘‘AS 3305.22–.26.’’
u. In paragraph .86, the reference to
‘‘section 508.35–.44 and .58–.60’’ is
replaced with ‘‘AS 3101.35–.44 and .58–
.60.’’
v. In paragraph .90:
• In the first sentence, the reference
to ‘‘Section 623, Special Reports,
paragraph .10’’ is replaced with ‘‘AS
3305.10.’’
• Each reference to ‘‘section 623.10’’
is replaced with ‘‘AS 3305.10.’’
AU sec. 625, ‘‘Reports on the
Application of Accounting Principles’’
SAS No. 50, ‘‘Reports on the
Application of Accounting Principles’’
(AU sec. 625, ‘‘Reports on the
Application of Accounting Principles’’),
as amended, is amended as follows:
a. The section number ‘‘AU Section
625’’ is replaced with ‘‘AS 6105.’’
b. In the last sentence of footnote 1 to
paragraph .01, the reference to ‘‘section
623, Special Reports, paragraph .04’’ is
replaced with ‘‘paragraph .04 of AS
3305, Special Reports,.’’
c. Footnote 3 to paragraph .02 is
deleted.
d. In paragraph .08, the parenthetic
reference to ‘‘section 411, The Meaning
of Present Fairly in Conformity With
Generally Accepted Accounting
Principles’’ is replaced with ‘‘AS 2815,
The Meaning of ‘Present Fairly in
Conformity with Generally Accepted
Accounting Principles.’ ’’
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e. In the last sentence of paragraph
.09, the reference to ‘‘section 315,
Communications Between Predecessor
and Successor Auditors, paragraph .10’’
is replaced with ‘‘paragraph .10 of AS
2610, Initial Audits—Communications
Between Predecessor and Successor
Auditors.’’
f. In paragraph .10a, the phrase
‘‘applicable AICPA standards’’ is
replaced with ‘‘the standards of the
PCAOB.’’
g. The first sentence of footnote 7 to
paragraph .10f is deleted.
h. In the last sentence of the
paragraph following the subheading
‘‘Introduction’’ following paragraph .11,
the phrase ‘‘standards established by the
American Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
AU sec. 634, ‘‘Letters for Underwriters
and Certain Other Requesting Parties’’
SAS No. 72, ‘‘Letters for Underwriters
and Certain Other Requesting Parties’’
(AU sec. 634, ‘‘Letters for Underwriters
and Certain Other Requesting Parties’’),
as amended, is amended as follows:
a. The section number ‘‘AU Section
634’’ is replaced with ‘‘AS 6101.’’
b. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
49)’’ is deleted.
c. In footnote 3 to paragraph .03, the
parenthetic reference to ‘‘section
9634.01–.09’’ is replaced with
‘‘paragraphs .01–.09 of AI 27, Letters for
Underwriters and Certain Other
Requesting Parties: Auditing
Interpretations of AS 6101.’’
d. In paragraph .09b:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the last sentence, the phrase
‘‘standards established by the American
Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board.’’
e. In paragraph .12:
• Each phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• In footnote 8, the parenthetic
reference to ‘‘section 9711.12–.15’’ is
replaced with ‘‘paragraphs .12–.15 of AI
26, Responsibilities Regarding Filings
Under Federal Securities Statutes:
Auditing Interpretations of AS 4101.’’
• In the first sentence of footnote 9,
the reference to ‘‘section 711, Filings
Under Federal Securities Statutes’’ is
replaced with ‘‘AS 4101,
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Responsibilities Regarding Filings
Under Federal Securities Statutes,.’’
f. In the first sentence of footnote 13
to paragraph .16, the reference to ‘‘SAS
No. 71 [section 722]’’ is replaced with
‘‘AS 4105, Reviews of Interim Financial
Information.’’
g. In the first sentence of footnote 18
to paragraph .27:
• The parenthetic reference to
‘‘section 722.50’’ is replaced with ‘‘AS
4105.50.’’
• The reference to ‘‘section 558,
Required Supplementary Information,
paragraphs .08 through .11’’ is replaced
with ‘‘paragraphs .08 through .11 of AS
2705, Required Supplementary
Information.’’
h. In footnote 20 to paragraph .28, the
reference to ‘‘section 530, Dating of the
Independent Auditor’s Report,
paragraphs .03 through .08’’ is replaced
with ‘‘AS 3110.03 through .08.’’
i. In paragraphs .29a and b, each
parenthetic reference to ‘‘section 552’’ is
replaced with ‘‘AS 3315.’’
j. In paragraph .29c, the parenthetic
reference to ‘‘section 722’’ is replaced
with ‘‘AS 4105.’’
k. In the fifth sentence of paragraph
.29, the reference to ‘‘section 325’’ is
replaced with ‘‘AS 1305.’’
l. In paragraph .30:
• In the first sentence:
• The reference to ‘‘section 722’’ is
replaced with ‘‘AS 4105.’’
• The reference to ‘‘section 558,
Required Supplementary Information,’’
is replaced with ‘‘AS 2705.’’
• In the second sentence:
• The reference to ‘‘Section 722’’ is
replaced with ‘‘AS 4105.’’
• The reference to ‘‘section 558’’ is
replaced with ‘‘AS 2705.’’
• In the last sentence, the reference to
‘‘sections 722 and 558’’ is replaced with
‘‘AS 4105 and AS 2705.’’
m. In paragraph .31, the sixth and
seventh sentences are deleted.
n. In paragraphs .35a and b, each
reference to ‘‘SAS No. 71 [section 722]’’
is replaced with ‘‘AS 4105.’’
o. In paragraph .37:
• Each reference to ‘‘section 722’’ is
replaced with ‘‘AS 4105.’’
• In the second sentence of footnote
28, the reference to ‘‘section 722’’ is
replaced with ‘‘AS 4105.’’
p. In the first sentence of paragraph
.38, the phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
q. In paragraphs .39a and b, each
reference to ‘‘SAS No. 71 [section 722]’’
is replaced with ‘‘AS 4105.’’
r. In the third sentence of paragraph
.42, the reference to ‘‘SAS No. 71
[section 722]’’ is replaced with ‘‘AS
4105.’’
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s. In the second bullet of paragraph
.46, the reference to ‘‘SAS No. 71
[section 722]’’ is replaced with ‘‘AS
4105.’’
t. In paragraph .59:
• In the fourth sentence, the
parenthetic reference to ‘‘(see section
435, Segment Information)’’ is deleted.
• In footnote 34, the reference to
‘‘section 558’’ is replaced with ‘‘AS
2705.’’
u. In paragraph .64:
• Following subtitle ‘‘Example A:
Typical Comfort Letter’’:
• In the third sentence of the second
paragraph following item 2d, the
reference to ‘‘section 722’’ is replaced
with ‘‘AS 4105, Reviews of Interim
Financial Information,.’’
• In item 4a(i) of the letter in
Example A:
• The phrase ‘‘American Institute of
Certified Public Accountants’’ is
replaced with ‘‘Public Company
Accounting Oversight Board (United
States).’’
• The reference to ‘‘SAS No. 71,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
• In the first sentence following item
4b(ii) of the letter in Example A, the
phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board.’’
• In footnote 6 to item 5a(i) of the
letter in Example A, the reference to
‘‘Section 722’’ is replaced with ‘‘AS
4105.’’
• Following the subtitle ‘‘Example B:
Letter When a Short-Form Registration
Statement Is Filed Incorporating
Previously Filed Forms 10–K and 10–Q
by Reference’’:
• In item 4a(i) of the letter in
Example B:
• The phrase ‘‘American Institute of
Certified Public Accountants’’ is
replaced with ‘‘Public Company
Accounting Oversight Board (United
States).’’
• The reference to ‘‘SAS No. 71,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
• In the first sentence following item
4b(ii) of the letter in Example B, the
phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board.’’
• In the third sentence of item 5,
(following the subtitle ‘‘Example D:
Comments on Pro Forma Financial
Information’’), the reference to ‘‘SAS
No. 71 [section 722]’’ is replaced with
‘‘AS 4105.’’
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• In item 8 (following the subtitle
‘‘Example E: Comments on a Financial
Forecast’’):
• In the first sentence, the reference
to ‘‘AICPA’’ is replaced with ‘‘AT
section 301, Financial Forecasts and
Projections,.’’
• Each phrase ‘‘standards established
by the American Institute of Certified
Public Accountants’’ is replaced with
‘‘the standards of the Public Company
Accounting Oversight Board.’’
• In the first sentence of footnote 10
to item 7 (following the subtitle
‘‘Example F: Comments on Tables,
Statistics, and Other Financial
Information—Complete Description of
Procedures and Findings’’), the
reference to ‘‘section 552’’ is replaced
with ‘‘AS 3315.’’
• Following the subtitle ‘‘Example L:
Alternate Wording When Recent
Earnings Data Are Presented in Capsule
Form’’:
• In the first sentence of item 13, the
reference to ‘‘section 722’’ is replaced
with ‘‘AS 4105.’’
• In item 4a(i) of the letter in
Example L:
• The phrase ‘‘American Institute of
Certified Public Accountants’’ is
replaced with ‘‘Public Company
Accounting Oversight Board (United
States).’’
• The reference to ‘‘SAS No. 71,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
• In item 4b(ii) of the letter in
Example L:
• The phrase ‘‘American Institute of
Certified Public Accountants’’ is
replaced with ‘‘Public Company
Accounting Oversight Board.’’
• The reference to ‘‘SAS No. 71,
Interim Financial Information,’’ is
replaced with ‘‘AS 4105.’’
• In the first sentence following item
4b(iii) of the letter in Example L, the
phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board.’’
• The subtitle ‘‘Example O: Alternate
Wording When the Procedures That the
Underwriter Has Requested the
Accountant to Perform on Interim
Financial Information Are Less Than an
SAS No. 71 Review’’ is replaced with
‘‘Example O: Alternate Wording When
the Procedures That the Underwriter
Has Requested the Accountant to
Perform on Interim Financial
Information Are Less Than an AS 4105
Review.’’
• Following the subtitle ‘‘Example O:
Alternate Wording When the Procedures
That the Underwriter Has Requested the
Accountant to Perform on Interim
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Financial Information Are Less Than an
SAS No. 71 Review’’:
• In the third sentence of item 16, the
reference to ‘‘SAS No. 71 [section 722]’’
is replaced with ‘‘AS 4105.’’
• In the first sentence following item
4c of the letter in Example O, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the second paragraph to item 6
of the letter in Example O:
• In the first sentence:
• The phrase ‘‘standards established
by the American Institute of Certified
Public Accountants’’ is replaced with
‘‘the standards of the Public Company
Accounting Oversight Board.’’
• The reference to ‘‘AICPA’’ is
replaced with ‘‘AT section 301,
Financial Forecasts and Projections,.’’
• In the last sentence, the phrase
‘‘standards established by the AICPA’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
• Following the subtitle ‘‘Example P:
A Typical Comfort Letter in a Non-1933
Act Offering, Including the Required
Underwriter Representations’’:
• In the third sentence of item 17, the
reference to ‘‘SAS No. 71 [section 722]’’
is replaced with ‘‘AS 4105.’’
• In the first sentence of item 6 of the
letter in Example P, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the letter following the subtitle
‘‘Example Q: Letter to a Requesting
Party That Has Not Provided the
Representation Letter Described in
Paragraphs .06 and .07’’:
• In the second paragraph, the phrase
‘‘rule 101 of the AICPA’s Code of
Professional Conduct, and its
interpretations and rulings’’ is replaced
with ‘‘Public Company Accounting
Oversight Board Rule 3520, Auditor
Independence.’’
• In Item 6:
• In the first sentence, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the last sentence, the phrase
‘‘standards established by the American
Institute of Certified Public
Accountants’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board.’’
• Following the subtitle ‘‘Example R:
Comfort Letter That Includes Reference
to Examination of Annual MD&A and
Review of Interim MD&A’’:
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• In the fifth sentence of item 19, the
reference to ‘‘section 722’’ is replaced
with ‘‘AS 4105.’’
• In the first sentence following item
5b(ii) of the letter in Example R, the
phrase ‘‘generally accepted auditing
standards’’ is replaced with ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’
AU sec. 9634, ‘‘Letters for Underwriters
and Certain Other Requesting Parties:
Auditing Interpretations of Section 634’’
AU sec. 9634, ‘‘Letters for
Underwriters and Certain Other
Requesting Parties: Auditing
Interpretations of Section 634,’’ as
amended, is amended as follows:
a. The section number ‘‘AU Section
9634’’ is replaced with ‘‘AI 27.’’
b. The title ‘‘Letters for Underwriters
and Certain Other Requesting Parties:
Auditing Interpretations of Section 634’’
is replaced with ‘‘Letters for
Underwriters and Certain Other
Requesting Parties: Auditing
Interpretations of AS 6101.’’
c. In paragraph .03, the parenthetic
reference to ‘‘section 634.33’’ is replaced
with ‘‘paragraph .33 of AS 6101, Letters
for Underwriters and Certain Other
Requesting Parties.’’
d. In the first sentence of paragraph
.04:
• The phrase ‘‘generally accepted
auditing standards’’ is replaced with
‘‘the standards of the PCAOB.’’
• The parenthetic reference to
‘‘section 550’’ is replaced with ‘‘AS
2710, Other Information in Documents
Containing Audited Financial
Statements.’’
e. In paragraph .05:
• In the third sentence:
• The reference to ‘‘section 634’’ is
replaced with ‘‘AS 6101.’’
• The reference to ‘‘section 634.54–
.60’’ is replaced with ‘‘AS 6101.54–.60.’’
• In the first sentence of footnote 3,
the reference to ‘‘Section 634.12’’ is
replaced with ‘‘AS 6101.12.’’
• In the fourth sentence, the reference
to ‘‘section 634.55’’ is replaced with
‘‘AS 6101.55.’’
• In the fifth sentence, the reference
to ‘‘section 634.55 and .57’’ is replaced
with ‘‘AS 6101.55 and .57.’’
f. In paragraph .06, each reference to
‘‘section 634.57’’ or ‘‘Section 634.57’’ is
replaced with ‘‘AS 6101.57.’’
g. In the last sentence of paragraph
.07, the reference to ‘‘section 634.55’’ is
replaced with ‘‘AS 6101.55.’’
h. In the last sentence of paragraph
.09, the reference to ‘‘section 634.31’’ is
replaced with ‘‘AS 6101.31.’’
i. In the first sentence of paragraph
.16, the reference to ‘‘Section 634,
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Letters for Underwriters and Certain
Other Requesting Parties, paragraph
.57,’’ is replaced with ‘‘AS 6101.57.’’
j. In the first sentence of paragraph
.18, the reference to ‘‘Section 634.55’’ is
replaced with ‘‘AS 6101.55.’’
k. In the third sentence of paragraph
.19, the reference to ‘‘section 634.55’’ is
replaced with ‘‘6101.55.’’
l. In paragraph .29:
• In the first sentence, the reference
to ‘‘section 634.64’’ is replaced with
‘‘6101.64.’’
• In the last sentence of footnote 4 to
the table following paragraph .29, the
reference to ‘‘section 634.55’’ is replaced
with ‘‘AS 6101.55.’’
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU sec. 711, ‘‘Filings Under Federal
Securities Statutes’’
SAS No. 37, ‘‘Filings Under Federal
Securities Statutes’’ (AU sec. 711,
‘‘Filings Under Federal Securities
Statutes’’), as amended, is amended as
follows:
a. The section number ‘‘AU Section
711’’ is replaced with ‘‘AS 4101.’’
b. The title ‘‘Filings Under Federal
Securities Statutes’’ is replaced with
‘‘Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
c. Footnote * to the section number of
the standard is deleted.
d. In the note to paragraph .02, the
reference to ‘‘paragraphs C16–C17 of
Appendix C, Special Reporting
Situations, of PCAOB Auditing
Standard No. 5’’ is replaced with
‘‘paragraphs .C16–.C17 of Appendix C,
Special Reporting Situations, of AS
2201.’’
e. In the fourth sentence of paragraph
.10, the reference to ‘‘section 560.12’’ is
replaced with ‘‘paragraph .12 of AS
2801, Subsequent Events.’’
f. In the last sentence of paragraph
.11, the parenthetic reference to ‘‘section
508’’ is replaced with ‘‘AS 3101, Reports
on Audited Financial Statements.’’
g. In paragraph .12:
• In the first sentence, the references
to ‘‘sections 560 and 561’’ are replaced
with ‘‘AS 2801 and AS 2905,
Subsequent Discovery of Facts Existing
at the Date of the Auditor’s Report.’’
• In the second sentence, the
reference to ‘‘sections 530.05 and 530.07
and .08’’ is replaced with ‘‘paragraph
.05 of AS 3110, Dating of the
Independent Auditor’s Report, and AS
3110.07 and .08.’’
• In the third sentence, the reference
to ‘‘section 561.08 and .09’’ is replaced
with ‘‘AS 2905.08 and .09.’’
h. In paragraph .13a:
• The reference to ‘‘section 561’’ is
replaced with ‘‘AS 2905.’’
• The parenthetic reference to
‘‘section 722.46’’ is replaced with
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d. In the second sentence of paragraph
.01:
• The word ‘‘three’’ is deleted.
AU sec. 9711, ‘‘Filings Under Federal
• The phrase ‘‘discussed in section
Securities Statutes: Auditing
150, Generally Accepted Auditing
Interpretations of Section 711’’
Standards, paragraph .02),’’ is deleted.
AU sec. 9711, ‘‘Filings Under Federal
• Footnote 1A is added following the
Securities Statutes: Auditing
term ‘‘standards’’:
Interpretations of Section 711,’’ as
See AS 1005, Independence, AS 1010,
amended, is amended as follows:
Training and Proficiency of the
a. The section number ‘‘AU Section
Independent Auditor, and AS 1015, Due
9711’’ is replaced with ‘‘AI 26.’’
Professional Care in the Performance of
b. The title ‘‘Filings Under Federal
Work.
Securities Statutes: Auditing
e. In the first sentence of paragraph
Interpretations of Section 711’’ is
.04, the reference to ‘‘Section 315,
replaced with ‘‘Responsibilities
Communications Between Predecessor
Regarding Filings Under Federal
and Successor Auditors’’ is replaced
Securities Statutes: Auditing
with ‘‘AS 2610, Initial Audits—
Interpretations of AS 4101.’’
Communications Between Predecessor
c. In paragraph .03:
and Successor Auditors.’’
• In the first sentence, the reference
f. In footnote 5 to paragraph .05, the
to ‘‘Section 711, Filings Under Federal
last sentence is deleted.
Securities Statutes, paragraph .05’’ is
g. In the second sentence of paragraph
replaced with ‘‘Paragraph .05 of AS
.07, the phrase ‘‘generally accepted
4101, Responsibilities Regarding Filings auditing standards’’ is replaced with
Under Federal Securities Statutes.’’
‘‘the standards of the PCAOB.’’
• In the last sentence, the parenthetic
h. In the eighth bullet of paragraph
reference to ‘‘section 711.10 and .11’’ is
.09:
replaced with ‘‘AS 4101.10 and .11.’’
• In the first sentence, the phrase
d. In paragraph .05, the reference to
‘‘standards established by the AICPA’’ is
‘‘section 711.10 and .11’’ is replaced
replaced with ‘‘the standards of the
with ‘‘AS 4101.10 and .11.’’
PCAOB.’’
e. In paragraph .09:
• In the third sentence, the phrase
• In the second sentence, the
‘‘generally accepted auditing standards’’
parenthetic reference to ‘‘section 552,
is replaced with ‘‘the standards of the
Reporting on Condensed Financial
PCAOB.’’
Statements and Selected Financial Data,
i. In the first sentence of footnote 7 to
paragraph .08’’ is replaced with
the first bullet of paragraph .11, the
‘‘paragraph .08 of AS 3315, Reporting on reference to ‘‘Paragraphs 10 through 23
Condensed Financial Statements and
of Auditing Standard No. 14’’ is
Selected Financial Data.’’
replaced with ‘‘Paragraphs .10 through
• In the last sentence, the parenthetic
.23 of AS 2810.’’
reference to ‘‘section 711.10 and .11’’ is
j. In the third sentence of paragraph
replaced with ‘‘AS 4101.10 and .11.’’
.13, the reference to ‘‘Auditing Standard
f. In paragraph .10:
No. 12’’ is replaced with ‘‘AS 2110.’’
• In the first sentence, the reference
k. In the last sentence of paragraph
to ‘‘section 711’’ is replaced with ‘‘AS
.16, the reference to ‘‘section 329’’ is
4101.’’
• In the last sentence, the reference to replaced with ‘‘AS 2305.’’
l. In footnote 11 to paragraph .18b, the
‘‘section 711.10 and .11’’ is replaced
parenthetic reference to ‘‘section 543,
with ‘‘AS 4101.10 and .11.’’
Part of Audit Performed by Other
g. In the last sentence of paragraph
.11, the reference to ‘‘Section 711.12 and Independent Auditors’’ is replaced with
‘‘AS 1205, Part of the Audit Performed
.13’’ is replaced with ‘‘AS 4101.12 and
by Other Independent Auditors.’’
.13.’’
m. In the last sentence of paragraph
AU sec. 722, ‘‘Interim Financial
.18f, the reference to ‘‘section 550, Other
Information’’
Information in Documents Containing
Audited Financial Statements,
SAS No. 100, ‘‘Interim Financial
paragraphs .04 through .06)’’ is replaced
Information’’ (AU sec. 722, ‘‘Interim
Financial Information’’), as amended, is with ‘‘paragraphs .04 through .06 of AS
2710, Other Information in Documents
amended as follows:
Containing Audited Financial
a. The section number ‘‘AU Section
Statements.’’
722’’ is replaced with ‘‘AS 4105.’’
n. In the first sentence of footnote 15
b. The title ‘‘Interim Financial
Information’’ is replaced with ‘‘Reviews to paragraph .21, the reference to
‘‘section 341, The Auditor’s
of Interim Financial Information.’’
c. In the references before paragraph
Consideration of an Entity’s Ability to
.01, the phrase ‘‘(Supersedes SAS No.
Continue as a Going Concern, paragraph
71)’’ is deleted.
.10’’ is replaced with ‘‘paragraph .10 of
‘‘paragraph .46 of AS 4105, Reviews of
Interim Financial Information.’’
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AS 2415, Consideration of an Entity’s
Ability to Continue as a Going
Concern.’’
o. In footnote 16 to paragraph .24, the
reference to ‘‘section 333, Management
Representations, paragraphs .08 through
.12’’ is replaced with ‘‘paragraphs .08
through .12 of AS 2805, Management
Representations.’’
p. In the last sentence of paragraph
.30, the reference ‘‘paragraph 25 of
Auditing Standard No. 16’’ is replaced
with ‘‘paragraph .25 of AS 1301.’’
q. In paragraph .32:
• The reference to ‘‘AU sec. 316’’ is
replaced with ‘‘AS 2401.’’
• The reference to ‘‘AU sec. 317’’ is
replaced with ‘‘AS 2405.’’
r. In paragraph .34:
• In the first sentence, the reference
to ‘‘Auditing Standard No. 16,
Communications with Audit
Committees’’ is replaced with ‘‘AS
1301.’’
• In the fourth sentence, the reference
to ‘‘paragraph 12 of Auditing Standard
No. 16, Communications with Audit
Committees’’ is replaced with ‘‘AS
1301.12.’’
s. In the last sentence of paragraph
.36, the reference to ‘‘paragraph 25 of
Auditing Standard No. 16,
Communications with Audit
Committees’’ is replaced with ‘‘AS
1301.25.’’
t. In paragraph .37d, the phrase
‘‘standards established by the AICPA’’ is
replaced with ‘‘the standards of the
PCAOB.’’
u. In paragraph .37f, the phrase
‘‘generally accepted auditing standards’’
is replaced with ‘‘the standards of the
PCAOB.’’
v. Paragraph ‘‘.37i’’ is replaced with
‘‘.37j.’’
w. Paragraph .37i is added:
The city and state (or city and
country, in the case of non-U.S.
auditors) from which the auditor’s
report has been issued.
x. Footnote 24A is added to the end
of the added paragraph .37i:
See SEC Rule 2–02(a) of Regulation
S–X, 17 CFR 210.2–02(a).
y. In footnote 25 to paragraph .37i:
• The reference to ‘‘sections 530’’ is
replaced with ‘‘AS 3110.’’
• The reference to ‘‘560’’ is replaced
with ‘‘AS 2801.’’
z. In the Independent Accountant’s
Report following paragraph .38:
• The heading ‘‘Independent
Accountant’s Report’’ above the
example report is replaced with ‘‘Report
of Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph, the phrase ‘‘standards
established by the American Institute of
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Certified Public Accountants’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the third sentence of the second
paragraph, the phrase ‘‘generally
accepted auditing standards’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
• The phrase ‘‘[City and State or
Country]’’ is added following the term
‘‘[Signature].’’
aa. In the Independent Accountant’s
Report following paragraph .39:
• The heading ‘‘Independent
Accountant’s Report’’ above the
example report is replaced with ‘‘Report
of Independent Registered Public
Accounting Firm.’’
• In the first sentence of the second
paragraph, the phrase ‘‘standards
established by the American Institute of
Certified Public Accountants’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the third sentence of the second
paragraph, the phrase ‘‘generally
accepted auditing standards’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
• In the first sentence of the fourth
paragraph, the phrase ‘‘auditing
standards generally accepted in the
United States of America’’ is replaced
with ‘‘the standards of the Public
Company Accounting Oversight Board.’’
• The phrase ‘‘[City and State or
Country]’’ is added following the term
‘‘[Signature].’’
bb. In footnote 29 to paragraph .40,
the reference to ‘‘section 543, Part of
Audit Performed by Other Independent
Auditors’’ is replaced with ‘‘AS 1205.’’
cc. In the Independent Accountant’s
Report following paragraph .40:
• The heading ‘‘Independent
Accountant’s Report’’ above the
example report is replaced with ‘‘Report
of Independent Registered Public
Accounting Firm.’’
• In the first sentence of the third
paragraph, the phrase ‘‘standards
established by the American Institute of
Certified Public Accountants’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’
• In the third sentence of the third
paragraph, the phrase ‘‘generally
accepted auditing standards’’ is
replaced with ‘‘the standards of the
Public Company Accounting Oversight
Board.’’
• The phrase ‘‘[City and State or
Country]’’ is added following the term
‘‘[Signature].’’
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dd. In footnote 30 to paragraph .41,
the reference to ‘‘section 508, Reports on
Audited Financial Statements,
paragraph .15’’ is replaced with
‘‘paragraph .15 of AS 3101, Reports on
Audited Financial Statements.’’
ee. In the first sentence of footnote 32
to paragraph .43, the reference to
‘‘section 341, The Auditor’s
Consideration of an Entity’s Ability to
Continue as a Going Concern, paragraph
.10’’ is replaced with ‘‘AS 2415.10.’’
ff. In the last sentence of paragraph
.46, the reference to ‘‘section 561’’ is
replaced with ‘‘AS 2905.’’
gg. In the last sentence of paragraph
.50d, the phrase ‘‘standards established
by the American Institute of Certified
Public Accountants’’ is replaced with
‘‘the standards of the Public Company
Accounting Oversight Board.’’
hh. In Appendix B, footnote 36 to
bullet 16 of item B1 in paragraph .55,
the reference to ‘‘section 342, Auditing
Accounting Estimates, paragraphs .05
and .06’’ is replaced with ‘‘paragraphs
.05 and .06 of AS 2501, Auditing
Accounting Estimates.’’
ii. In Appendix C of paragraph .56:
• In item C2:
• In the third sentence, the reference
to ‘‘section 333’’ is replaced with ‘‘AS
2805.’’
• The last sentence is deleted.
• In the second sentence of item C5:
• The reference to ‘‘section 316’’ is
replaced with ‘‘AS 2401.’’
• The phrase ‘‘related parties’’ is
italicized.
• The reference to ‘‘Auditing
Standard No. 18’’ is replaced with ‘‘AS
2410.’’
• In the last sentence of item C6, the
reference to ‘‘section 333.08’’ is replaced
with ‘‘AS 2805.08.’’
• In the bracketed sentence of
paragraph 15 of the second management
representation letter titled ‘‘Illustrative
Representation Letter for a Review of
Interim Financial Information
(Statements),’’ the reference to ‘‘section
333, Management Representations,
paragraph .17)’’ is replaced with
‘‘paragraph .17 of AS 2805,
Management Representations.’’
AU sec. 801, ‘‘Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’
SAS No. 74, ‘‘Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’
(AU sec. 801, ‘‘Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’), as
amended, is amended as follows:
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a. The section number ‘‘AU Section
801’’ is replaced with ‘‘AS 6110.’’
b. The title ‘‘Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’ is
replaced with ‘‘Compliance Auditing
Considerations in Audits of Recipients
of Governmental Financial Assistance.’’
c. In the references before paragraph
.01, the phrase ‘‘(Supersedes SAS No.
68)’’ is deleted.
d. In paragraph .01, in the first
sentence, the phrase ‘‘generally
accepted auditing standards (GAAS)’’ is
replaced with ‘‘the standards of the
PCAOB.’’
e. Footnote 5 to paragraph .02 is
deleted.
f. In paragraph .02a, the reference to
‘‘section 317’’ is replaced with ‘‘AS
2405.’’
g. In the first sentence of paragraph
.06:
• The reference to ‘‘Section 317’’ is
replaced with ‘‘AS 2405.’’
• The term ‘‘GAAS’’ is replaced with
‘‘the standards of the PCAOB.’’
h. In the first sentence of paragraph
.09, the term ‘‘GAAS’’ is replaced with
‘‘the standards of the PCAOB.’’
i. In paragraph .10a, the term ‘‘GAAS’’
is replaced with ‘‘the standards of the
PCAOB.’’
j. In the last sentence of paragraph .11,
the term ‘‘GAAS’’ is replaced with ‘‘the
standards of the PCAOB.’’
k. Footnote 12 to paragraph .12 is
deleted.
l. Footnote 14 to paragraph .16 is
deleted.
m. In footnote 15 to paragraph .17c,
the term ‘‘GAAS’’ is replaced with ‘‘the
standards of the PCAOB.’’
n. In the last sentence of paragraph
.18, the reference to ‘‘section 350’’ is
replaced with ‘‘AS 2315.’’
o. In paragraph .22:
• In the first sentence, the term
‘‘GAAS’’ is replaced with ‘‘The
standards of the PCAOB.’’
• In the second sentence:
• The phrase ‘‘a GAAS’’ is replaced
with ‘‘an.’’
• The phrase ‘‘in accordance with the
standards of the PCAOB’’ is added
following the term ‘‘statements.’’
• The second term ‘‘GAAS’’ is
replaced with ‘‘the standards of the
PCAOB.’’
• In the last sentence, the term
‘‘GAAS’’ is replaced with ‘‘the standards
of the PCAOB.’’
p. In the last sentence of paragraph
.23, the reference to ‘‘section 317’’ is
replaced with ‘‘AS 2405.’’
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AU sec. 901, ‘‘Public Warehouses—
Controls and Auditing Procedures for
Goods Held’’
SAS No. 1, ‘‘Codification of Auditing
Standards and Procedures’’ (AU sec.
901, ‘‘Public Warehouses—Controls and
Auditing Procedures for Goods Held’’),
as amended, is rescinded.
Attestation Standards
Attestation Standard No. 1,
‘‘Examination Engagements Regarding
Compliance Reports of Brokers and
Dealers’’
Attestation Standard No. 1,
‘‘Examination Engagements Regarding
Compliance Reports of Brokers and
Dealers,’’ is amended as follows:
a. In footnote 8 to paragraph 4, the
reference to ‘‘Auditing Standard No. 15’’
is replaced with ‘‘AS 1105.’’
b. In the second note to paragraph 6,
the reference to ‘‘Auditing Standard No.
3’’ is replaced with ‘‘AS 1215.’’
c. In the first sentence of footnote 12
to paragraph 8, the reference to
‘‘Auditing Standard No. 17’’ is replaced
with ‘‘AS 2701.’’
d. In footnote 18 to paragraph 35, the
reference to ‘‘Auditing Standard No. 16’’
is replaced with ‘‘AS 1301.’’
e. In footnote 3 to paragraph C10, the
reference to ‘‘AU sec. 317’’ is replaced
with ‘‘AS 2405.’’
Attestation Standard No. 2, ‘‘Review
Engagements Regarding Exemption
Reports of Brokers and Dealers’’
Attestation Standard No. 2, ‘‘Review
Engagements Regarding Exemption
Reports of Brokers and Dealers,’’ is
amended as follows:
a. In the second note to paragraph 5,
the reference to ‘‘Auditing Standard No.
3’’ is replaced with ‘‘AS 1215.’’
b. In the first sentence of footnote 9
to paragraph 7, the reference to
‘‘Auditing Standard No. 17’’ is replaced
with ‘‘AS 2701.’’
c. In footnote 12 to paragraph 15, the
reference to ‘‘Auditing Standard No. 16’’
is replaced with ‘‘AS 1301.’’
AT sec. 101, ‘‘Attestation Engagements’’
AT sec. 101, ‘‘Attestation
Engagements,’’ as amended, is amended
as follows:
a. The following note is added at the
end of paragraph .01:
Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public
Accountants, the practitioner must
instead refer to ‘‘the standards of the
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Public Company Accounting Oversight
Board (United States).’’ A practitioner
must also include the city and state (or
city and country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
b. In the last sentence of paragraph
.04f, the reference to ‘‘PCAOB Auditing
Standard No. 4’’ is replaced with ‘‘AS
6115.’’
c. In paragraph .91:
• The parenthetic reference to ‘‘AU
section 634’’ is replaced with ‘‘AS
6101.’’
• The parenthetic reference to ‘‘AU
section 711, Filings Under Federal
Securities Statues’’ is replaced with ‘‘AS
4101, Responsibilities Regarding Filings
Under Federal Securities Statues.’’
d. In the last sentence of paragraph
.99, the reference to ‘‘AU section 561’’
is replaced with ‘‘AS 2905.’’
AT sec. 9101, ‘‘Attest Engagements:
Attest Engagements Interpretations of
Section 101’’
AT sec. 9101, ‘‘Attest Engagements:
Attest Engagements Interpretations of
Section 101,’’ is amended as follows:
a. In the last sentence of paragraph
.12, the reference to ‘‘AU section 322,
The Auditor’s Consideration of the
Internal Audit Function in an Audit of
Financial Statements’’ is replaced with
‘‘AS 2605, Consideration of the Internal
Audit Function.’’
b. In the second bullet of paragraph
.28, the reference to ‘‘AU section 722,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information.’’
c. Paragraph .43 is deleted.
d. Paragraph 44 is replaced with the
following:
Illustrative letters in response to a
regulatory request for access to or copies
of the attest documentation related to an
examination engagement performed in
accordance with section 601,
Compliance Attestation, and an agreedupon procedures engagement performed
in accordance with section 201, AgreedUpon Procedures Engagements, follow.
e. In footnote 7 to paragraph .45, the
parenthetic reference to ‘‘AU section
9339.11–.15’’ is deleted.
f. In footnote 12 to paragraph .46:
• The parenthetic reference to ‘‘AU
section 9339.11–.15’’ is deleted.
• A comma is added after the second
word ‘‘access.’’
AT sec. 201, ‘‘Agreed-Upon Procedures
Engagements’’
AT sec. 201, ‘‘Agreed-Upon
Procedures Engagements,’’ is amended
as follows:
a. The following note is added at the
end of paragraph .01:
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Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public
Accountants, the practitioner must
instead refer to ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’ A practitioner
must also include the city and state (or
city and country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
b. In paragraph .02a, the reference to
‘‘AU section 623’’ is replaced with ‘‘AS
3305.’’
c. In paragraph .02b, the reference to
‘‘AU section 801, Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’ is
replaced with ‘‘AS 6110, Compliance
Auditing Considerations in Audits of
Recipients of Governmental Financial
Assistance.’’
d. In paragraph .02c, the reference to
‘‘AU section 324, Service Organizations,
paragraph .58’’ is replaced with
‘‘paragraph .58 of AS 2601,
Consideration of an Entity’s Use of a
Service Organization.’’
e. In paragraph .02d, the reference to
‘‘AU section 634’’ is replaced with ‘‘AS
6101.’’
f. In footnote 3 to paragraph .03, the
reference to ‘‘AU section 623.11–.18’’ is
replaced with ‘‘AS 3305.11–.18.’’
g. In footnote 7 to paragraph .22, the
reference to ‘‘AU section 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
h. In footnote 13 to paragraph .31k:
• In the first sentence, the reference
to ‘‘AU section 504, Association With
Financial Statements’’ is replaced with
‘‘AS 3320, Association with Financial
Statements.’’
• In the second sentence:
• The reference to ‘‘AU section
504.04’’ is replaced with ‘‘AS 3320.04.’’
• The reference to ‘‘AU section 722,
Interim Financial Information’’ is
replaced with ‘‘AS 4105, Reviews of
Interim Financial Information).’’
• The reference to ‘‘AU section
504.05’’ is replaced with ‘‘AS 3320.05.’’
i. In footnote 16 to paragraph .36, the
reference to ‘‘AU section 530, Dating of
the Independent Auditor’s Report,
paragraphs .06 and .07’’ is replaced with
‘‘paragraphs .06 and .07 of AS 3110,
Dating of the Independent Auditor’s
Report.’’
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j. In footnote 18 to paragraph .40, the
bracketed reference to ‘‘AU section 508’’
is replaced with ‘‘AS 3101.’’
AT sec. 301, ‘‘Financial Forecasts and
Projections’’
AT sec. 301, ‘‘Financial Forecasts and
Projections,’’ is amended as follows:
a. The following note is added at the
end of paragraph .01:
Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public
Accountants, the practitioner must
instead refer to ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’ A practitioner
must also include the city and state (or
city and country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
b. In footnote 4 to paragraph .08e, the
reference to ‘‘AU section 623’’ is
replaced with ‘‘AS 3305.’’
c. In footnote 12 to paragraph .23, the
parenthetic reference to ‘‘AU section
9504.19–.22’’ is replaced with
‘‘paragraphs .19–.22 of AI 25,
Association with Financial Statements:
Auditing Interpretations of AS 3320.’’
d. In paragraph .24:
• In footnote 13, the reference to ‘‘AU
section 504, Association With Financial
Statements’’ is replaced with ‘‘AS 3320,
Association with Financial Statements.’’
• In footnote 14, the reference to ‘‘AU
section 552’’ is replaced with ‘‘AS
3315.’’
e. In paragraph .48:
• In footnote 23, the reference to ‘‘AU
section 504’’ is replaced with ‘‘AS
3320.’’
• In footnote 24, the reference to ‘‘AU
section 552’’ is replaced with ‘‘AS
3315.’’
f. In footnote 26 to paragraph .52, the
reference to ‘‘AU section 634’’ is
replaced with ‘‘AS 6101.’’
g. In paragraph .60:
• In footnote 29:
• In the first sentence, the reference
to ‘‘AU section 550’’ is replaced with
‘‘AS 2710.’’
• In the second sentence:
• The reference to ‘‘AU section 550’’
is replaced with ‘‘AS 2710.’’
• The bracketed reference to ‘‘AU
section 711, Filings Under Federal
Securities Statutes’’ is replaced with
‘‘AS 4101, Responsibilities Regarding
Filings Under Federal Securities
Statutes.’’
• In the last sentence, the reference to
‘‘AU section 550’’ is replaced with ‘‘AS
2710.’’
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h. In the first sentence of footnote 5
to item 11d of paragraph .70, Appendix
C, the reference to ‘‘AU section 722,
Interim Financial Information,
paragraphs .13 through .19’’ is replaced
with ‘‘paragraphs .13 through .19 of AS
4105, Reviews of Interim Financial
Information.’’
AT sec. 401, ‘‘Reporting on Pro Forma
Financial Information’’
AT sec. 401, ‘‘Reporting on Pro Forma
Financial Information,’’ is amended as
follows:
a. In footnote 1 to paragraph .01:
• In the first sentence, the reference
to ‘‘AU section 634, Letters for
Underwriters and Certain Other
Requesting Parties, paragraphs .03
through .05’’ is replaced with
‘‘Paragraphs .03 through .05 of AS 6101,
Letters for Underwriters and Certain
Other Requesting Parties.’’
• In the last sentence, the reference to
‘‘AU section 634.03’’ is replaced with
‘‘AS 6101.03.’’
b. The following note is added at the
end of paragraph .01:
Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public
Accountants, the practitioner must
instead refer to ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’ A practitioner
must also include the city and state (or
city and country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
c. In paragraph .02, the reference to
‘‘AU section 550, Other Information in
Documents Containing Audited
Financial Statements, and AU section
711, Filings Under Federal Securities
Statutes’’ is replaced with ‘‘AS 2710,
Other Information in Documents
Containing Audited Financial
Statements, and AS 4101,
Responsibilities Regarding Filings
Under Federal Securities Statutes.’’
d. In footnote 2 to paragraph .03:
• In the second sentence, the
reference to ‘‘AU section 560,
Subsequent Events, paragraph .05’’ is
replaced with ‘‘paragraph .05 of AS
2801, Subsequent Events.’’
• In the last sentence, the reference to
‘‘AU section 508, Reports on Audited
Financial Statements, paragraph .28’’ is
replaced with ‘‘paragraph .28 of AS
3101, Reports on Audited Financial
Statements.’’
e. In the second sentence of footnote
5 to paragraph .07b, the reference to
‘‘AU section 722, Interim Financial
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Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
AT sec. 601, ‘‘Compliance Attestation’’
AT sec. 601, ‘‘Compliance
Attestation,’’ as amended, is amended as
follows:
a. The following note is added at the
end of paragraph .01:
Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public
Accountants, the practitioner must
instead refer to ‘‘the standards of the
Public Company Accounting Oversight
Board (United States).’’ A practitioner
must also include the city and state (or
city and country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
b. In paragraph .02:
• In item b, the reference to ‘‘AU
section 623, Special Reports, paragraphs
.19 through .21’’ is replaced with
‘‘paragraphs .19 through .21 of AS 3305,
Special Reports.’’
• In item c, the reference to ‘‘AU
section 801, Compliance Auditing
Considerations in Audits of
Governmental Entities and Recipients of
Governmental Financial Assistance’’ is
replaced with ‘‘AS 6110, Compliance
Auditing Considerations in Audits of
Recipients of Governmental Financial
Assistance.’’
• In item d, the reference to ‘‘AU
section 634’’ is replaced with ‘‘AS
6101.’’
c. In footnote 5 to paragraph .19, the
reference to ‘‘AU section 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
d. In the second sentence of paragraph
.33, the reference to ‘‘AU section 316A,
Consideration of Fraud in a Financial
Statement Audit, paragraphs .16
through .19’’ is replaced with ‘‘AS 2401,
Consideration of Fraud in a Financial
Statement Audit.’’
e. In the last sentence of paragraph
.43, the reference to ‘‘AU section 336’’
is replaced with ‘‘AS 1210.’’
f. In the last sentence of paragraph
.44, the reference to ‘‘AU section 322,
The Auditor’s Consideration of the
Internal Audit Function in an Audit of
Financial Statements’’ is replaced with
‘‘AS 2605, Consideration of the Internal
Audit Function.’’
g. In the second sentence of paragraph
.47, the reference to ‘‘AU section 325,
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Communication of Internal Control
Related Matters Noted in an Audit’’ is
replaced with ‘‘AS 1305,
Communications About Control
Deficiencies in an Audit of Financial
Statements.’’
h. In the last sentence of paragraph
.48, the reference to ‘‘AU section 350’’
is replaced with ‘‘AS 2315.’’
i. In the first sentence of paragraph
.50, the reference to ‘‘AU section 560’’
is replaced with ‘‘AS 2801.’’
j. In footnote 22 to paragraph .68, the
reference to ‘‘AU section 333,
Management Representations,
paragraph .09’’ is replaced with
‘‘Paragraph .09 of AS 2805, Management
Representations.’’
AT sec. 701, ‘‘Management’s Discussion
and Analysis’’
AT sec. 701, ‘‘Management’s
Discussion and Analysis,’’ is amended
as follows:
a. The following note is added at the
end of paragraph .01:
Note: In connection with an
engagement performed in accordance
with this attestation standard, whenever
the practitioner is required to make
reference in a report to attestation
standards established by the American
Institute of Certified Public Accountants
or auditing standards generally accepted
in the United States of America, the
practitioner must instead refer to ‘‘the
standards of the Public Company
Accounting Oversight Board (United
States).’’ A practitioner must also
include the city and state (or city and
country, in the case of non-U.S.
practitioners) from which the
practitioner’s report has been issued.
b. In the last sentence of footnote 6 to
paragraph .02:
• The reference to ‘‘Statement on
Auditing Standards (SAS) No. 71’’ is
deleted.
• The parenthetic reference to ‘‘AU
section 722, Interim Financial
Information’’ is replaced with ‘‘AS
4105, Reviews of Interim Financial
Information.’’
c. In footnote 7 to paragraph .02, the
reference to ‘‘AU section 634’’ is
replaced with ‘‘AS 6101.’’
d. In paragraph .11a, the reference to
‘‘AU section 722, Interim Financial
Information,’’ is replaced with ‘‘AS
4105.’’
e. In item (2) of paragraph .14a, the
reference to ‘‘AU section 722’’ is
replaced with ‘‘AS 4105.’’
f. In footnote 16 to paragraph .20:
• In the first sentence, the reference
to ‘‘AU section 329, Analytical
Procedures’’ is replaced with ‘‘AS 2305,
Substantive Analytical Procedures.’’
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• In the last sentence, the reference to
‘‘AU section 329’’ is replaced with ‘‘AS
2305.’’
g. The first sentence of paragraph .39
is deleted.
h. Footnote 18 to paragraph .44 is
deleted.
i. In paragraph .47:
• In the third sentence, the reference
to ‘‘AU section 336’’ is replaced with
‘‘AS 1210.’’
• In the last sentence, the reference to
‘‘AU section 311, Planning and
Supervision’’ is replaced with ‘‘AS
1201, Supervision of the Audit
Engagement.’’
j. In the last sentence of paragraph .48,
the reference to ‘‘AU section 322, The
Auditor’s Consideration of the Internal
Audit Function in an Audit of Financial
Statements’’ is replaced with ‘‘AS 2605,
Consideration of the Internal Audit
Function.’’
k. In the last sentence of paragraph
.58:
• The reference to ‘‘AU section 325,
Communication of Internal Control
Related Matters Noted in an Audit’’ is
replaced with ‘‘AS 1305,
Communications About Control
Deficiencies in an Audit of Financial
Statements.’’
• The reference to ‘‘AU section 380,
Communication With Audit
Committees’’ is replaced with ‘‘AS 1301,
Communications with Audit
Committees.’’
l. In footnote 24 to paragraph .66:
• In the second sentence, the
reference to ‘‘AU section 561’’ is
replaced with ‘‘AS 2905.’’
• In the last sentence, the reference to
‘‘AU section 711, Filings Under Federal
Securities Statutes’’ is replaced with
‘‘AS 4101, Responsibilities Regarding
Filings Under Federal Securities
Statutes.’’
m. In footnote 25 to paragraph .66c,
the reference to ‘‘AU section 337’’ is
replaced with ‘‘AS 2505.’’
n. In the first sentence of paragraph
.102, the reference to ‘‘AU section 315,
Communications Between Predecessor
and Successor Audits’’ is replaced with
‘‘AS 2610, Initial Audits—
Communications Between Predecessor
and Successor Audits.’’
o. In paragraph .106:
• In the second sentence, the
reference to ‘‘SAS No. 8’’ is replaced
with ‘‘AS 2710.’’
• In the last sentence, the reference to
‘‘AU section 711, Filings Under Federal
Securities Statutes,’’ is replaced with
‘‘AS 4101.’’
p. In footnote 30 to paragraph .107,
the reference to ‘‘AU section 550,
Information in Documents Containing
Audited Financial Statements,’’ is
replaced with ‘‘AS 2710.’’
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q. In the last sentence of paragraph
.108, the reference to ‘‘AU section 317,
Illegal Acts, paragraphs .17, .22, and
.23)’’ is replaced with ‘‘paragraphs .17,
.22, and .23 of AS 2405, Illegal Acts by
Clients.’’
r. In the last sentence of paragraph
.109, the reference to ‘‘AU section 316’’
is replaced with ‘‘AS 2401.’’
s. In footnote 31 to paragraph .110:
• In the first sentence, the reference
to ‘‘AU section 333, Management
Representations, paragraph .09’’ is
replaced with ‘‘Paragraph .09 of AS
2805, Management Representations.’’
• In the second sentence, the
reference to ‘‘AU section 711.10’’ is
replaced with ‘‘AS 4101.10.’’
t. In the title of Appendix D:
• The reference to ‘‘SAS No. 8’’ is
replaced with ‘‘AS 2710.’’
• Footnote * is deleted.
u. In the table in paragraph .117, the
column heading ‘‘SAS No. 8’’ is
replaced with ‘‘AS 2710.’’
Quality Control Standards
QC sec. 20, ‘‘System of Quality Control
for a CPA Firm’s Accounting and
Auditing Practice’’
QC section (‘‘sec.’’) 20, ‘‘System of
Quality Control for a CPA Firm’s
Accounting and Auditing Practice,’’ is
amended as follows:
a. In the first sentence of paragraph
.10, the reference to ‘‘AU section 220’’
is replaced with ‘‘AS 1005.’’
b. In footnote 7 to paragraph .10, the
reference to ‘‘AU section 220.02’’ is
replaced with ‘‘AS 1005.02.’’
c. In the last sentence of paragraph
.18, the reference to ‘‘PCAOB Auditing
Standard No. 7’’ is replaced with ‘‘AS
1220.’’
Ethics and Independence Standards
ET sec. 101, ‘‘Independence’’
ET sec. 101, ‘‘Independence,’’ is
amended as follows:
a. The note in paragraph .05 is
deleted.
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ET sec. 102, ‘‘Integrity and Objectivity’’
ET sec. 102, ‘‘Integrity and
Objectivity,’’ is amended as follows:
a. In footnote 1 to paragraph .05, the
reference to ‘‘paragraph 5.b. of Auditing
Standard No. 10, Supervision of the
Audit Engagement, and paragraph 12.d.
of Auditing Standard No. 3, Audit
Documentation’’ is replaced with
‘‘paragraph .05b of AS 1201,
Supervision of the Audit Engagement,
and paragraph .12d of AS 1215, Audit
Documentation.’’
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II. Board’s Statement of the Purpose of,
and Statutory Basis for, the Proposed
Rules
In its filing with the Commission, the
Board included statements concerning
the purpose of, and basis for, the
proposed rules and discussed comments
it received on the proposed rules. The
text of these statements may be
examined at the places specified in Item
IV below. The Board has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these statements. In addition,
the Board is requesting that the
Commission approve the proposed
rules, pursuant to Section 103(a)(3)(C) of
the Sarbanes-Oxley Act, for application
to audits of emerging growth companies
(‘‘EGCs’’), as that term is defined in
Section 3(a)(80) of the Securities
Exchange Act of 1934 (‘‘Exchange Act’’).
The Board’s request is set forth in
section D.
A. Board’s Statement of the Purpose of,
and Statutory Basis for, the Proposed
Rules
(a) Purpose
Introduction
The Board is reorganizing its auditing
standards using a topical structure and
a single, integrated numbering system.
To implement this reorganization, the
Board is adopting amendments to its
auditing standards and rules and is also
rescinding certain auditing standards
that are no longer necessary under the
reorganization. These amendments do
not impose new requirements on
auditors or change the substance of the
requirements for performing and
reporting on audits under PCAOB
standards. Specifically, the amendments
to implement the reorganization include
updates to the section numbers, cross
references, and titles of certain
standards. Other related amendments
include, among others, removing
standards that are no longer necessary,
replacing references to generally
accepted auditing standards, and
updating certain PCAOB rules to reflect
the reorganized auditing standards.
The new organizational structure is
intended to improve the usability of the
Board’s standards, including helping
users navigate the standards more
easily. To facilitate navigation, the
standards are organized into a logical
structure by topic areas that generally
follow the flow of the audit process. For
example, auditing standards that apply
to procedures performed near the
completion of the audit are arranged in
the same area. The reorganization also
uses a numbering convention that is
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different from conventions used by
other standard setters, which should
help to avoid the potential for confusion
between the standards of the Board and
those of other standard setters.
Background and the Need for
Improvement
In April 2003, the Board adopted, on
an interim, transitional basis, the
generally accepted auditing standards,
originally issued by the Auditing
Standards Board (‘‘ASB’’) of the
American Institute of Certified Public
Accountants (‘‘AICPA’’), that were in
existence at the time.2 When the Board
adopted those auditing standards, it
continued to use the topical
organization and reference numbers
(‘‘AU sections’’) in the ASB’s thenexisting codification of its standards.3
Auditing standards issued by the Board
(‘‘AS standards’’) were not codified or
otherwise organized by topic, but were
numbered in sequential order based
upon when they were issued. Thus far,
the Board has issued 18 auditing
standards (AS Nos. 1–18), which have
superseded 12 interim auditing
standards and amended the majority of
the remaining interim auditing
standards to varying degrees. As a
result, the Board’s auditing standards
are organized using two separate
numbering systems: (i) The numbering
system used by the ASB when the Board
adopted the interim standards and (ii)
the numbering system used by the
Board for the standards it has issued.
The Board undertook a project to
consider the reorganization of the
Board’s auditing standards. In 2013, the
Board proposed to reorganize its
auditing standards using a single,
integrated numbering system and a
topical structure that generally follows
the flow of the audit process (‘‘original
proposal’’).4 The proposed
reorganization was intended to enhance
the usability of the standards, help users
navigate the standards more easily (for
example, by helping users find the
relevant standard for a particular area of
the audit), help avoid potential
confusion between the Board’s
standards and the standards of the
International Auditing and Assurance
Standards Board (‘‘IAASB’’) or the ASB,
and provide a structure for updating
2 See Establishment of Interim Professional
Auditing Standards, PCAOB Release No. 2003–006
(Apr. 18, 2003) (adopting Rule 3200T, Interim
Auditing Standards).
3 Since 2003, the ASB has modified the
organizational structure of its standards as part of
its Clarity Project.
4 See Proposed Framework for Reorganization of
PCAOB Auditing Standards and Related
Amendments to PCAOB Auditing Standards and
Rules, PCAOB Release 2013–002 (March 26, 2013).
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PCAOB standards in the future. The
original proposal also included
amendments to rescind certain interim
auditing standards that the Board
believed were no longer necessary.
In May 2014, the Board issued a
supplemental request for comment
(‘‘supplemental request’’) on the original
proposal.5 The supplemental request
included proposed line-by-line
amendments to PCAOB auditing
standards and rules necessary to
implement the proposed reorganization,
along with certain changes to the
reorganization as presented in the
original proposal.6 The supplemental
request also reopened the comment
period on the original proposal to seek
further comment on matters discussed
in the original proposal, as well as on
the implementing amendments in the
supplemental request.
The Reorganization
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After considering the suggestions
from commenters on the original
proposal and supplemental request, the
Board is adopting amendments to
reorganize the standards substantially as
proposed, with some refinements as
described below.
Under the reorganization, the
individual standards will be grouped
into the following topical categories:
• General Auditing Standards—
Standards on broad auditing principles,
concepts, activities, and
communications;
• Audit Procedures—Standards for
planning and performing audit
procedures and for obtaining audit
evidence;
• Auditor Reporting—Standards for
auditors’ reports;
• Matters Relating to Filings Under
Federal Securities Laws—Standards on
certain auditor responsibilities relating
to SEC filings for securities offerings
and reviews of interim financial
information; and
• Other Matters Associated with
Audits—Standards for other work
performed in conjunction with an audit
of an issuer or of a broker or dealer.
Within each category are
subcategories to further organize similar
topics, such as standards related to
5 See Supplemental Request for Comment:
Proposed Framework for Reorganization of PCAOB
Auditing Standards and Related Amendments to
PCAOB Auditing Standards and Rules, PCAOB
Release 2014–001 (May 7, 2014).
6 At the same time, the Board released on its Web
site an online demonstration version that presented
the existing auditing standards as they would look
if reorganized according to the proposed
reorganization. The demonstration version of the
reorganized auditing standards can be accessed at
https://pcaobus.org/Rules/Rulemaking/Pages/
Docket040.aspx.
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auditor communications in the ‘‘General
Auditing Standards’’ category. This
section includes an illustration of the
reorganization, including the categories
and subcategories for PCAOB auditing
standards. The integrated referencing
system uses an ‘‘AS’’ prefix to identify
the auditing standards, which is
consistent with common practice for
describing standards issued by the
Board (for example, ‘‘AS No. 7’’ for the
standard on engagement quality review).
Each standard is assigned a unique
section number, based on a four-digit
numbering system.7 Using a four-digit
system facilitates the grouping of
auditing standards into logical
categories and subcategories by topic
and avoids potential confusion with the
standards of the IAASB or the ASB.8
The topical organization also provides
a structure for future updates to PCAOB
auditing standards. For example, future
auditing standards will be issued as new
or replacement sections and paragraphs
within the new structure.
Changes to PCAOB Standards and Rules
Item I presents the amendments to
PCAOB standards and rules to
implement the reorganization of the
PCAOB’s auditing standards and other
related amendments. These
amendments are technical changes that
include rescinding certain interim
auditing standards that the Board
believes are no longer necessary and
eliminating certain inoperative language
or references. The changes do not
impose new requirements on auditors or
change the substance of the
requirements for performing and
reporting on audits under PCAOB
standards.
Changes to PCAOB Standards
The amendments primarily update
section numbers, update crossreferences among standards using a new
numbering system, and change the titles
of certain standards, as described below.
For example, for AU sec. 324, Service
7 Each standard retains its current paragraph
numbers, but the paragraph number format of the
standards issued by the Board has been changed to
match the format of the paragraph numbers of its
other auditing standards. Each paragraph is
numbered ‘‘.01,’’ ‘‘.02,’’ etc. For example, the
reference for the first paragraph of the standard on
audit planning will be ‘‘AS 2101.01.’’
8 After the Board adopted the standards issued by
the ASB, the ASB undertook a project to clarify its
auditing standards that resulted in, among other
things, a renumbering and reorganization of their
standards. Consequently, the PCAOB’s interim
auditing standard AU section (‘‘sec.’’) 230, Due
Professional Care in the Performance of Work, for
example, described the auditor’s responsibility for
applying due professional care in planning and
performing audits, whereas the ASB standard with
the same number now relates to audit
documentation.
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Organizations, the amendments replace
‘‘AU sec.’’ with ‘‘AS’’ and ‘‘324’’ with
‘‘2601.’’ The title of this standard is
changed to ‘‘Consideration of an Entity’s
Use of a Service Organization.’’ As
described above, the paragraph numbers
within the standard remain the same.
For example, AU sec. 324.05 becomes
AS 2601.05.
Other amendments rescind certain
interim standards and remove or update
certain terms and phrases in the
standards, such as references to
generally accepted auditing standards
(‘‘GAAS’’). Those changes are discussed
in the following paragraphs.
Interim Auditing Standards To Be
Rescinded
As proposed, the Board is rescinding
the following interim standards: 9
• AU sec. 150, Generally Accepted
Auditing Standards
• AU sec. 201, Nature of the General
Standards
• AU sec. 410, Adherence to
Generally Accepted Accounting
Principles
• AU sec. 532, Restricting the Use of
an Auditor’s Report
• AU sec. 901, Public Warehouses—
Controls and Auditing Procedures for
Goods Held
Interpretive Publications
Among other things, AU sec. 150
described the auditor’s responsibilities
regarding interpretive publications,
which consist of auditing
interpretations of the interim auditing
standards, appendices to the interim
auditing standards, auditing guidance
included in AICPA Audit and
Accounting Guides, and AICPA auditing
Statements of Position.10
The Board proposed to retain almost
all 11 of the AICPA auditing
interpretations and to present the
auditing interpretations separately from
the auditing standards on the Board’s
9 The original proposal also discussed why the
Board proposed to rescind the standards and why
AU sec. 534, Reporting on Financial Statements
Prepared for Use in Other Countries, would not
appear in the reorganized PCAOB auditing
standards.
10 See AU sec. 150.06. Pursuant to PCAOB Rule
3200T, the auditor’s responsibilities regarding
interpretive publications relate to the publications
described in AU sec. 150.06 that were in existence
as of April 16, 2003, to the extent not amended or
superseded by the Board.
11 As discussed in the original proposal, the
Board proposed to not retain auditing
interpretations related to standards that will not be
in the reorganization, specifically, the
interpretations of AU sec. 410 and AU sec. 534.
Also, the Board proposed to remove interpretation
16 (paragraphs .76–.84) of AU sec. 9508, Reports on
Audited Financial Statements: Auditing
Interpretations of Section 508, which does not
relate to audits of issuers, brokers, or dealers.
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Web site in a manner similar to PCAOB
guidance. As discussed in the
supplemental request, the proposed
amendments numbered the
interpretations consecutively using a
two-digit section number that followed
an ‘‘AI’’ prefix and used title language
in the form of ‘‘Auditing Interpretations
of AS xxxx.’’ The auditing
interpretations will be presented on the
guidance page of the Board’s Web site,
consistent with their presentation in the
online demonstration version that
accompanied the supplemental request.
Because the Board proposed to retain
the auditing interpretations, the Board
similarly proposed to retain the existing
requirement that auditors be aware of
and consider the auditing
interpretations.12
The Board is adopting the
organizational structure and numbering
of the auditing interpretations as
proposed. The Board also proposed to
retain almost all of the appendices 13 to
the interim auditing standards and to
continue presenting those appendices
together with their related auditing
standards in the same manner that the
appendices to Board-issued standards
are presented.14 In addition, the Board
proposed to retain the American Bar
Association’s Statement of Policy
Regarding Lawyers’ Responses to
Auditors’ Requests for Information,
currently included as Exhibit II of AU
sec. 337, Inquiry of a Client’s Lawyer
Concerning Litigation, Claims, and
Assessments.15 The Board received no
specific comments on these matters. The
Board is retaining the interim standards’
appendices and Exhibit II of AU sec.
337 in the reorganized standards as
proposed.
The Board also proposed and is
adopting amendments to remove
12 The Board proposed to add this requirement to
AS 1001, Responsibilities and Functions of the
Independent Auditor.
13 The Board proposed to delete the appendices
that contain paragraphs .86 and .87 of AU sec. 316,
Consideration of Fraud in a Financial Statement
Audit, which provide amendments to AU sec. 230,
Due Professional Care in the Performance of Work,
and AU sec. 333, Management Representations,
respectively, because these amendments already are
reflected in the standards themselves.
14 Appendices to Board-issued standards are an
integral part of those standards. See Auditing
Standards Related to the Auditor’s Assessment of
and Response to Risk and Related Amendments to
PCAOB Standards, PCAOB Release No. 2010–004,
at A10–3 (August 5, 2010).
15 The Board also proposed to delete the exhibit
that includes AU sec. 316.88 as it provides
guidance to management regarding antifraud
programs and controls. In addition, the Board
proposed to delete Exhibit I of AU sec. 337 because
it merely presents excerpts of Financial Accounting
Standard Board (‘‘FASB’’) Statement No. 5,
Accounting for Contingencies, which are set forth
in the FASB’s Accounting Standards Codification.
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references to AICPA Audit and
Accounting Guides and AICPA auditing
Statements of Position because the
guides referenced in PCAOB standards
are outdated.16
Other Changes to PCAOB Standards
In the supplemental request, the
Board proposed amendments to replace
references to GAAS throughout the
auditing standards with references to
the standards of the PCAOB or PCAOB
auditing standards and, accordingly, to
supersede Auditing Standard No. 1,
References in Auditors’ Reports to the
Standards of the Public Company
Accounting Oversight Board.
Commenters generally supported these
changes.
Auditing Standard No. 1 provides that
whenever the auditor is required by
existing standards to reference GAAS in
a report, the auditor must instead refer
to ‘‘the standards of the Public Company
Accounting Oversight Board (United
States).’’ Auditing Standard No. 1 also
includes a requirement for the report to
include the city and state (or city and
country) of the auditor. Because
Auditing Standard No. 1 also applies to
reports issued in accordance with the
PCAOB’s attestation standards, the
Board proposed similar amendments to
update GAAS references and to include
the city and state (or city and country)
in the interim attestation standards. The
Board is adopting the amendments and
superseding Auditing Standard No. 1 as
proposed.
The Board also proposed to eliminate
certain inoperative language in auditing
standards and interpretations and to
eliminate inoperative references to
AICPA standards or rules. For example,
the Board proposed to remove
references to provisions of the AICPA
Code of Professional Conduct or ethics
rules that were not adopted as interim
standards of the PCAOB and to replace
references to AICPA standards with
references to PCAOB standards, where
appropriate.17 As part of this effort the
Board also proposed to remove
16 AICPA Audit and Accounting Guides and
auditing Statements of Position referenced in
PCAOB standards are the editions of those
publications as in existence on April 16, 2003.
17 For example, the Board proposed to delete from
AS 1005, Independence, and AS 2605,
Consideration of the Internal Audit Function,
references to AICPA independence requirements
that were never adopted by the Board. Similar types
of changes were made to AS 2705, Required
Supplementary Information, AS 6101, Letters for
Underwriters and Certain Other Requesting Parties,
AS 6105, Reports on the Application of Accounting
Principles, AI 24, Special Reports: Auditing
Interpretations of AS 3305, and AI 25, Association
with Financial Statements: Auditing Interpretations
of AS 3320.
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references to superseded standards.18
The Board is adopting the amendments
as proposed except for the proposed
amendments to interpretation 4 of AT
sec. 9101, Attest Engagements: Attest
Engagements Interpretations of Section
101, which addresses letters to
regulators when they request access to
or copies of attestation documentation.
This interpretation includes illustrative
letters preceded by introductory
paragraphs that discuss the use of such
letters. The introductory paragraphs
include a reference to a superseded
auditing standard and auditing
interpretation. The proposed
amendments would have removed the
introductory paragraphs, leaving only
the illustrative letters to this
interpretation. Commenters stated that
the introductory paragraphs are
necessary to provide context to the
illustrative letters. The Board has
revised the amendments to include a
paragraph that introduces the
illustrative letters while eliminating the
superseded references.
Changes to PCAOB Rules
In conjunction with the
reorganization of PCAOB auditing
standards, the Board proposed to amend
PCAOB Rule 3200T, which requires
auditors to comply with the Board’s
interim auditing standards, to remove (i)
the reference to AU sec. 150, which, as
discussed above, would not be included
in the reorganized standards, and (ii)
terms such as ‘‘interim auditing
standards’’ and ‘‘generally accepted
auditing standards.’’ Those terms are
not relevant under the proposed
reorganization and could be confusing
to some users of the standards. In
addition, the Board would make the rule
a permanent rule rather than a
temporary rule and, therefore, would
remove the word ‘‘Interim’’ from the
title of the rule.19 The amended rule, as
proposed, would require compliance
with all PCAOB auditing standards.
18 For example, the Board proposed to remove
references to superseded standards in AS 3305,
Special Reports, AS 4105, Reviews of Interim
Financial Information, AI 10, Part of the Audit
Performed by Other Independent Auditors:
Auditing Interpretations of AS 1205, AI 23, Reports
on Audited Financial Statements: Auditing
Interpretations of AS 3101, AI 24, Special Reports:
Auditing Interpretations of AS 3305, AT Section
701, Management’s Discussion and Analysis, AT
Section 9101, Attest Engagements: Attest
Engagements Interpretations of Section 101, and ET
Section 101, Independence.
19 The Board also proposed a conforming
amendment to Rule 3101, Certain Terms Used in
Auditing and Related Professional Practice
Standards, as described in Item I. The Board
received no comments on that amendment and is
adopting it as proposed. The amendment does not
change the meaning or scope of that rule.
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The Board received no comments on
the proposed amendments to Rule
3200T and is adopting them as
proposed. These changes do not modify
the auditor’s existing responsibilities for
complying with PCAOB auditing
standards. Instead, the changes update
Rule 3200T so that it describes, in one
rule, the auditor’s responsibilities for
complying with all of the auditing
standards included in the
reorganization—those that the Board
adopted as interim standards in 2003
and those that the Board has adopted
since.
Additional Amendments for Auditing
Standard No. 18
ILLUSTRATION OF THE REORGANIZED
PCAOB AUDITING STANDARDS—
Continued
1110 .........
1200 .........
1201 .........
1205 .........
1210
1215
1220
1300
1301
.........
.........
.........
.........
.........
1305 .........
The Board has adopted certain
additional amendments beyond those
included in the original proposal or
supplemental request. Specifically, on
June 10, 2014, after the supplemental
request, the Board adopted Auditing
Standard No. 18, Related Parties,
amendments to certain PCAOB auditing
standards regarding significant unusual
transactions, and certain other
amendments to PCAOB auditing
standards.20 The Board is adopting
additional amendments to incorporate
Auditing Standard No. 18 and the other
amendments into the reorganized
auditing standards.21 Notably, these
amendments, like the other adopted
amendments, are technical in nature
and do not substantively affect the
requirements in PCAOB standards or
rules.
ILLUSTRATION OF THE REORGANIZED
PCAOB AUDITING STANDARDS
2100 .........
2101 .........
2105 .........
2110 .........
2200 .........
2201 .........
2300 .........
2301 .........
2305 .........
2310 .........
2315 .........
2400 .........
2401 .........
1000 .........
2405 .........
2410 .........
2415 .........
1001 .........
1005 .........
1010 .........
1015 .........
1100 .........
1101 .........
1105 .........
2500 .........
2501 .........
2502 .........
2503 .........
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2505 .........
20 See Auditing Standard No. 18—Related Parties,
Amendments to Certain PCAOB Auditing
Standards Regarding Significant Unusual
Transactions, and Other Amendments to PCAOB
Auditing Standards, PCAOB Release No. 2014–002
(June 10, 2014).
21 Separately, the Board also is making a technical
amendment to AS 2610.09 (formerly AU sec.
315.09) to consolidate the bullet points in the
paragraph, and AS 2705.09 (formerly AU sec
558.09) to update an outdated reference. Item I
includes these amendments.
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ILLUSTRATION OF THE REORGANIZED
PCAOB AUDITING STANDARDS—
Continued
2700 .........
2701 .........
2705 .........
2710 .........
2800
2801
2805
2810
2815
.........
.........
.........
.........
.........
Audit Procedures
General Auditing Standards
General Principles and Responsibilities
Responsibilities and Functions of
the Independent Auditor
Independence
Training and Proficiency of the
Independent Auditor
Due Professional Care in the
Performance of Work
General Concepts
Audit Risk
Audit Evidence
Relationship of Auditing Standards to Quality Control Standards 22
General Activities
Supervision of the Audit Engagement
Part of the Audit Performed by
Other Independent Auditors
Using the Work of a Specialist
Audit Documentation
Engagement Quality Review
Auditor Communications
Communications
with
Audit
Committees
Communications About Control
Deficiencies in an Audit of Financial Statements
2510 .........
2600 .........
2601 .........
2605 .........
2610 .........
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Frm 00043
Audit Planning and Risk Assessment
Audit Planning
Consideration of Materiality in
Planning and Performing an
Audit
Identifying and Assessing Risks
of Material Misstatement
Auditing Internal Control Over
Financial Reporting
An Audit of Internal Control Over
Financial Reporting That Is Integrated with An Audit of Financial Statements
Audit Procedures in Response
to Risks—Nature, Timing, and
Extent
The Auditor’s Responses to the
Risks of Material Misstatement
Substantive Analytical Procedures
The Confirmation Process
Audit Sampling
Audit Procedures for Specific
Aspects of the Audit
Consideration of Fraud in a Financial Statement Audit
Illegal Acts by Clients
Related Parties
Consideration of an Entity’s Ability to Continue as a Going
Concern 23
Audit Procedures for Certain Accounts or Disclosures
Auditing Accounting Estimates
Auditing Fair Value Measurements and Disclosures
Auditing Derivative Instruments,
Hedging Activities, and Investments in Securities
Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and
Assessments
Auditing Inventories 24
Special Topics
Consideration of an Entity’s Use
of a Service Organization 25
Consideration of the Internal
Audit Function 26
Initial Audits—Communications
Between Predecessor and
Successor Auditors 27
Fmt 4701
Sfmt 4703
36643
2820 .........
2900 .........
2901 .........
2905 .........
Auditor’s Responsibilities Regarding Supplemental and
Other Information
Auditing Supplemental Information Accompanying Audited Financial Statements
Required Supplementary Information
Other Information in Documents
Containing Audited Financial
Statements 28
Concluding Audit Procedures
Subsequent Events
Management Representations
Evaluating Audit Results
The Meaning of ‘‘Present Fairly
in Conformity with Generally
Accepted Accounting Principles’’
Evaluating Consistency of Financial Statements
Post-Audit Matters
Consideration of Omitted Procedures After the Report Date
Subsequent Discovery of Facts
Existing at the Date of the
Auditor’s Report
Auditor Reporting
3100 .........
3101 .........
3110 .........
3200
3300
3305
3310
.........
.........
.........
.........
3315 .........
3320 .........
Reporting on Audits of Financial
Statements
Reports on Audited Financial
Statements 29
Dating of the Independent Auditor’s Report
Reserved
Other Reporting Topics
Special Reports
Special Reports on Regulated
Companies 30
Reporting on Condensed Financial Statements and Selected
Financial Data
Association with Financial Statements
Matters Relating to Filings Under Federal
Securities Laws
4101 .........
4105 .........
5000 .........
Responsibilities Regarding Filings Under Federal Securities
Statutes 31
Reviews of Interim Financial Information 32
Reserved
Other Matters Associated with Audits
6101 .........
6105 .........
6110 .........
6115 .........
E:\FR\FM\25JNN2.SGM
25JNN2
Letters for Underwriters and
Certain Other Requesting Parties
Reports on the Application of
Accounting Principles
Compliance Auditing Considerations in Audits of Recipients
of Governmental Financial Assistance 33
Reporting on Whether a Previously
Reported
Material
Weakness Continues to Exist
36644
Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
Comparison of Existing PCAOB
Auditing Standards to Reorganization of
PCAOB Auditing Standards
The following presents the existing
PCAOB auditing standards (‘‘AS No.’’ or
‘‘AU sec.’’) along with their respective
AS reference under the adopted
reorganization of PCAOB auditing
standards.
Standards that note ‘‘Rescind’’ in the
AS Reference column are existing
standards that the Board is rescinding in
conjunction with the reorganization.
PCAOB reference
(AU section or AS No.)
Current title
AS No. 1 ........................
References in Auditors’ Reports to the Standards of the Public Company Accounting Oversight Board.
Audit Documentation ..................................................................................................................
Reporting on Whether a Previously Reported Material Weakness Continues to Exist .............
An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.
Evaluating Consistency of Financial Statements .......................................................................
Engagement Quality Review ......................................................................................................
Audit Risk ...................................................................................................................................
Audit Planning ............................................................................................................................
Supervision of the Audit Engagement ........................................................................................
Consideration of Materiality in Planning and Performing an Audit ............................................
Identifying and Assessing Risks of Material Misstatement ........................................................
The Auditor’s Responses to the Risks of Material Misstatement ..............................................
Evaluating Audit Results ............................................................................................................
Audit Evidence ............................................................................................................................
Communications with Audit Committees ....................................................................................
Auditing Supplemental Information Accompanying Audited Financial Statements ...................
Related Parties ...........................................................................................................................
Responsibilities and Functions of the Independent Auditor .......................................................
Generally Accepted Auditing Standards ....................................................................................
The Relationship of Generally Accepted Auditing Standards to Quality Control Standards .....
Nature of the General Standards ...............................................................................................
Training and Proficiency of the Independent Auditor .................................................................
Independence .............................................................................................................................
Due Professional Care in the Performance of Work .................................................................
Communications Between Predecessor and Successor Auditors .............................................
Consideration of Fraud in a Financial Statement Audit .............................................................
Illegal Acts by Clients .................................................................................................................
The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements.
Service Organizations ................................................................................................................
Communications About Control Deficiencies in an Audit of Financial Statements ...................
Auditing Fair Value Measurements and Disclosures .................................................................
Substantive Analytical Procedures .............................................................................................
The Confirmation Process ..........................................................................................................
Inventories ..................................................................................................................................
Auditing Derivative Instruments, Hedging Activities, and Investments in Securities .................
Management Representations ...................................................................................................
Using the Work of a Specialist ...................................................................................................
Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and Assessments .........................
AS No. 3 ........................
AS No. 4 ........................
AS No. 5 ........................
AS No. 6 ........................
AS No. 7 ........................
AS No. 8 ........................
AS No. 9 ........................
AS No. 10 ......................
AS No. 11 ......................
AS No. 12 ......................
AS No. 13 ......................
AS No. 14 ......................
AS No. 15 ......................
AS No. 16 ......................
AS No. 17 ......................
AS No. 18 ......................
AU sec. 110 ..................
AU sec. 150 ..................
AU sec. 161 ..................
AU sec. 201 ..................
AU sec. 210 ..................
AU sec. 220 ..................
AU sec. 230 ..................
AU sec. 315 ..................
AU sec. 316 ..................
AU sec. 317 ..................
AU sec. 322 ..................
asabaliauskas on DSK5VPTVN1PROD with NOTICES
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
324
325
328
329
330
331
332
333
336
337
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
22 AU sec. 161 is entitled, The Relationship of
Generally Accepted Auditing Standards to Quality
Control Standards. The Board is amending the title
of this standard to make it more consistent in style
with other standards without changing its
substance.
23 AU sec. 341 is entitled, The Auditor’s
Consideration of an Entity’s Ability to Continue as
a Going Concern. The Board is amending the title
of this standard to make it more consistent in style
with other standards without changing its
substance.
24 AU sec. 331 is entitled, Inventories. The Board
is amending the title of this standard to make it
more consistent in style with other standards
without changing its substance.
25 AU sec. 324 is entitled, Service Organizations.
The Board is amending the title of this standard to
make it more consistent in style with other
standards without changing its substance.
26 AU sec. 322 is entitled, The Auditor’s
Consideration of the Internal Audit Function in an
Audit of Financial Statements. The Board is
amending the title of this standard to make it more
consistent in style with other standards without
changing its substance.
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17:11 Jun 24, 2015
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AS reference
27 AU sec. 315 is entitled, Communications
Between Predecessor and Successor Auditors. The
Board is amending the title of this standard to
clarify the subject of the standard without changing
its substance. Additionally, this standard addresses
audits of financial statements that have been
audited previously.
28 The Board has proposed a new auditing
standard, The Auditor’s Responsibilities Regarding
Other Information in Certain Documents Containing
Audited Financial Statements and the Related
Auditor’s Report. See PCAOB Release No. 2013–005
(August 13, 2013). If adopted by the Board and
approved by the SEC, that proposed standard would
become AS 2710.
29 The Board has proposed a new auditing
standard, The Auditor’s Report on an Audit of
Financial Statements When the Auditor Expresses
an Unqualified Opinion. See Proposed Auditing
Standards—The Auditor’s Report on an Audit of
Financial Statements When the Auditor Expresses
an Unqualified Opinion; The Auditor’s
Responsibilities Regarding Other Information in
Certain Documents Containing Audited Financial
Statements and the Related Auditor’s Report; and
Related Amendments to PCAOB Standards, PCAOB
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Fmt 4701
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Supersede.34
1215.
6115.
2201.
2820.
1220.
1101.
2101.
1201.
2105.
2110.
2301.
2810.
1105.
1301.
2701.
2410.
1001.
Rescind.
1110.
Rescind.
1010.
1005.
1015.
2610.
2401.
2405.
2605.
2601.
1305.
2502.
2305.
2310.
2510.
2503.
2805.
1210.
2505.
Release No. 2013–005 (August 13, 2013). If adopted
by the Board and approved by the SEC, that
proposed standard would substantially amend AS
3101.
30 AU sec. 544 is entitled, Lack of Conformity
With Generally Accepted Accounting Principles.
The Board is amending the title of this standard to
clarify the subject of the standard without changing
its substance.
31 AU sec. 711 is entitled, Filings Under Federal
Securities Statutes. The Board is amending the title
of this standard to clarify the subject of the standard
without changing its substance.
32 AU sec. 722 is entitled, Interim Financial
Information. The Board is amending the title of this
standard to clarify the subject of the standard
without changing its substance.
33 AU sec. 801 is entitled, Compliance Auditing
Considerations in Audits of Governmental Entities
and Recipients of Governmental Financial
Assistance. The Board is amending the title of this
standard to clarify the subject of the standard
without changing its substance.
34 Auditing Standard No. 1 is superseded as a
result of the amendments made to other standards.
E:\FR\FM\25JNN2.SGM
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36645
Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
PCAOB reference
(AU section or AS No.)
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
AU
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
sec.
341
342
350
390
410
411
504
508
530
532
534
543
544
550
552
558
560
561
623
625
634
711
722
801
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
..................
AU sec. 901 ..................
Current title
The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern ................
Auditing Accounting Estimates ...................................................................................................
Audit Sampling ...........................................................................................................................
Consideration of Omitted Procedures After the Report Date ....................................................
Adherence to Generally Accepted Accounting Principles ..........................................................
The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles
Association With Financial Statements ......................................................................................
Reports on Audited Financial Statements ..................................................................................
Dating of the Independent Auditor’s Report ...............................................................................
Restricting the Use of an Auditor’s Report ................................................................................
Reporting on Financial Statements Prepared for Use in Other Countries ................................
Part of Audit Performed by Other Independent Auditors ...........................................................
Lack of Conformity With Generally Accepted Accounting Principles ........................................
Other Information in Documents Containing Audited Financial Statements .............................
Reporting on Condensed Financial Statements and Selected Financial Data ..........................
Required Supplementary Information .........................................................................................
Subsequent Events ....................................................................................................................
Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report ...........................
Special Reports ..........................................................................................................................
Reports on the Application of Accounting Principles .................................................................
Letters for Underwriters and Certain Other Requesting Parties ................................................
Filings Under Federal Securities Statutes ..................................................................................
Interim Financial Information ......................................................................................................
Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of
Governmental Financial Assistance.
Public Warehouses—Controls and Auditing Procedures for Goods Held .................................
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Comparison of the Reorganization of
PCAOB Auditing Standards to Existing
PCAOB Auditing Standards and the
Standards of the International Auditing
and Assurance Standards Board and
Auditing Standards Board
The following presents the adopted
reorganization of PCAOB auditing
standards (‘‘AS’’) along with their
references in existing PCAOB auditing
standards and the analogous standards
of the International Auditing and
Assurance Standards Board (‘‘IAASB’’)
and the Auditing Standards Board of the
American Institute of Certified Public
Accountants (‘‘ASB’’).
35 The responsibilities, functions, training, and
proficiency of the independent auditor;
independence requirements; exercising due
professional care; and audit risk are included in
multiple PCAOB standards (AS 1001, 1005, 1010,
1015, and 1101, respectively) but are included in
one IAASB standard (ISA 200) and one ASB
standard (AU–C 200).
36 The relationship of auditing standards to
quality control standards, supervision of the audit
engagement, and engagement quality review are
covered in separate PCAOB standards (AS 1110,
1201, and 1220, respectively) but are included in
one IAASB standard (ISA 220) and one ASB
standard (AU–C 220).
37 Under PCAOB standards, agreeing to the terms
of an audit and communications with audit
committees are covered in one standard, whereas
those subjects are covered by separate standards
under IAASB standards (ISA 210 and 260,
respectively) and ASB standards (AU–C 210 and
260, respectively).
38 The PCAOB has a standard for auditing internal
control over financial reporting when auditing
financial statements. The IAASB does not have a
standard on auditing internal control over financial
reporting, and the ASB addresses that subject in its
attestation standards (AT 501).
VerDate Sep<11>2014
AS reference
17:11 Jun 24, 2015
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39 Under PCAOB standards, substantive analytical
procedures are covered in a separate standard (AS
2305) and analytical procedures performed in the
overall review are included in the standard on
evaluating audit results (AS 2810), whereas those
subjects are both included in one IAASB standard
(ISA 520) and one ASB standard (AU–C 520).
40 The PCAOB has separate standards for auditing
accounting estimates (AS 2501) and auditing fair
value measurements and disclosures (AS 2502),
whereas the IAASB and ASB standards each have
one standard on auditing accounting estimates
including fair value estimates and disclosures (ISA
540 and AU–C 540, respectively).
41 The PCAOB has a separate standard for
auditing derivative instruments, hedging activities,
and investments in securities (AS 2503). In ASB
standards, that subject is included in the standard
on specific considerations regarding audit evidence
(AU–C 501). The IAASB has a practice note on
auditing financial instruments but does not have a
standard on the subject.
42 The PCAOB has a separate standard on inquiry
of a client’s lawyers (AS 2505). In IAASB and ASB
standards, inquiry of a client’s lawyers is included
in the standard on specific considerations regarding
audit evidence (ISA 501 and AU–C 501,
respectively).
43 The PCAOB has a separate standard on
auditing inventories (AS 2510). In IAASB and ASB
standards, auditing inventories is included in the
standard on specific considerations regarding audit
evidence (ISA 501 and AU–C 501, respectively).
44 In PCAOB standards, the subjects of
subsequent events and subsequent discovery of
facts existing at the report date are covered by
separate standards (AS 2801 and 2905,
respectively). In IAASB and ASB standards, those
subjects are included in the standard on subsequent
events (ISA 560 and AU–C 560, respectively).
45 In PCAOB standards, the subject of evaluating
audit results is covered in one standard (AS 2810).
In IAASB and ASB standards, various topics related
to evaluating audit results are covered in multiple
standards, particularly, the standards related to the
auditor’s responsibilities regarding fraud, the
auditor’s responses to assessed risks, evaluation of
misstatements, audit evidence, and analytical
PO 00000
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Fmt 4701
Sfmt 4703
2415.
2501.
2315.
2901.
Rescind.
2815.
3320.
3101.
3110.
Rescind.
Not Included.
1205.
3310.
2710.
3315.
2705.
2801.
2905.
3305.
6105.
6101.
4101.
4105.
6110.
Rescind.
procedures (ISA 240, 330, 450, 500, and 520 and
AU–C 240, 330, 450, 500, and 520, respectively).
46 The PCAOB has separate standards on the
subjects of present fairly in conformity with
generally accepted accounting principles (AS 2815)
and reporting on audited financial statements,
including emphasis paragraphs, departures from the
standard opinion, and reporting on comparative
statements (AS 3101). In IAASB and ASB standards,
the subject of presenting fairly is included in the
standard on forming an opinion and reporting on
audited financial statements (ISA 700 and AU–C
700, respectively), but there are separate standards
for emphasis paragraphs and departures from the
standard opinion (ISA 705 and 706, respectively,
and AU–C 705 and 706, respectively). In IAASB
standards, reporting on comparative financial
statements also is covered in a separate standard
(ISA 710), whereas that subject is included in the
ASB standard on forming an opinion and reporting
on audited financial statements (AU–C 700).
47 Under PCAOB standards, the subject of dating
the independent auditor’s report is covered in a
single standard (AS 3110). Under IAASB and ASB
standards, the standard requirement for dating the
auditor’s report is covered in the reporting standard
(ISA 700 and AU–C 700, respectively), and the
subject of dating the auditor’s report when there is
a subsequent discovery of facts is covered in the
subsequent events standard (ISA 560 and AU–C
560, respectively).
48 Under PCAOB standards, financial statements
prepared in accordance with special purpose
frameworks and reporting on specified elements,
accounts or items of a financial statement are
covered in one standard (AS 3305). Under IAASB
and ASB standards, those subjects are covered by
separate standards (ISA 800 and 805, respectively)
and ASB standards (AU–C 800 and 805,
respectively). Reporting on compliance with
contractual agreements or regulatory requirements
in connection with audited financial statements
also is covered by the PCAOB standard, whereas
that subject is not covered by the IAASB standards
and is covered by a separate ASB standard (AU–C
806).
49 Under PCAOB standards, the subject of
reporting on financial statements prepared in
E:\FR\FM\25JNN2.SGM
Continued
25JNN2
36646
Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
AS reference
Title
PCAOB reference (AU section or
AS No.)
Analogous IAASB
standard (ISA)
1001 ............
Responsibilities and Functions of the Independent Auditor.
Independence ......................................................
Training and Proficiency of the Independent
Auditor.
Due Professional Care in the Performance of
Work.
Audit Risk ............................................................
Audit Evidence .....................................................
Relationship of Auditing Standards to Quality
Control Standards.
Supervision of the Audit Engagement .................
Part of the Audit Performed by Other Independent Auditors.
Using the Work of a Specialist ............................
Audit Documentation ...........................................
Engagement Quality Review ...............................
Communications with Audit Committees .............
Communications About Control Deficiencies in
an Audit of Financial Statements.
Audit Planning .....................................................
Consideration of Materiality in Planning and Performing an Audit.
Identifying and Assessing Risks of Material
Misstatement.
An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.
The Auditor’s Responses to the Risks of Material Misstatement.
Substantive Analytical Procedures ......................
The Confirmation Process ...................................
Audit Sampling ....................................................
Consideration of Fraud in a Financial Statement
Audit.
Illegal Acts by Clients ..........................................
Related Parties ....................................................
Consideration of an Entity’s Ability to Continue
as a Going Concern.
Auditing Accounting Estimates ............................
Auditing Fair Value Measurements and Disclosures.
Auditing Derivative Instruments, Hedging Activities, and Investments in Securities.
Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and Assessments.
Auditing Inventories .............................................
Consideration of an Entity’s Use of a Service
Organization.
Consideration of the Internal Audit Function .......
Initial Audits—Communications Between Predecessor and Successor Auditors.
Auditing Supplemental Information Accompanying Audited Financial Statements.
Required Supplementary Information ..................
Other Information in Documents Containing Audited Financial Statements.
Subsequent Events .............................................
Management Representations ............................
AU sec. 110 ................................
200 35 .....................
200.
AU sec. 220 ................................
AU sec. 210 ................................
200 .........................
200 .........................
200.
200.
AU sec. 230 ................................
200 .........................
200.
AS No. 8 ......................................
AS No. 15 ....................................
AU sec. 161 ................................
200 .........................
500 .........................
220 36 .....................
200.
500.
220.
AS No. 10 ....................................
AU sec. 543 ................................
220 .........................
600 .........................
220.
600.
AU sec. 336 ................................
AS No. 3 ......................................
AS No. 7 ......................................
AS No. 16 ....................................
AU sec. 325 ................................
500, 620 .................
230 .........................
220 .........................
210, 260 37 .............
265 .........................
500, 620.
230.
220.
210, 260.
265.
AS No. 9 ......................................
AS No. 11 ....................................
300 .........................
320 .........................
300.
320.
AS No. 12 ....................................
315 .........................
315.
AS No. 5 ......................................
N/A 38 .....................
AT 501.
AS No. 13 ....................................
330 .........................
330.
AU
AU
AU
AU
................................
................................
................................
................................
520 39 .....................
505 .........................
530 .........................
240 .........................
520.
505.
530.
240.
AU sec. 317 ................................
AS No. 18 ....................................
AU sec. 341 ................................
250 .........................
550 .........................
570 .........................
250.
550.
570.
AU sec. 342 ................................
AU sec. 328 ................................
540 40 .....................
540 .........................
540.
540.
AU sec. 332 ................................
N/A 41 .....................
501.
AU sec. 337 ................................
501 42 .....................
501.
AU sec. 331 ................................
AU sec. 324 ................................
501 43
.....................
402 .........................
501.
402.
AU sec. 322 ................................
AU sec. 315 ................................
610 .........................
510 .........................
610.
510.
AS No. 17 ....................................
N/A .........................
725.
AU sec. 558 ................................
AU sec. 550 ................................
N/A .........................
720 .........................
730.
720.
AU sec. 560 ................................
AU sec. 333 ................................
560 44 .....................
580 .........................
560.
580.
1005 ............
1010 ............
1015 ............
1101 ............
1105 ............
1110 ............
1201 ............
1205 ............
1210
1215
1220
1301
1305
............
............
............
............
............
2101 ............
2105 ............
2110 ............
2201 ............
2301 ............
2305
2310
2315
2401
............
............
............
............
2405 ............
2410 ............
2415 ............
2501 ............
2502 ............
2503 ............
2505 ............
2510 ............
2601 ............
2605 ............
2610 ............
2701 ............
2705 ............
2710 ............
asabaliauskas on DSK5VPTVN1PROD with NOTICES
2801 ............
2805 ............
sec.
sec.
sec.
sec.
329
330
350
316
accordance with a regulatory basis of accounting is
covered in a separate standard (AS 3310). That
subject is covered in the IAASB standard on
agreeing to the terms of audit engagements (ISA
210) and in the ASB standard on financial
statements prepared in accordance with special
purpose frameworks (AU–C 800).
50 In PCAOB standards, the subject of conducting
a review of interim financial information is covered
in AS 4105. Under IAASB standards, that subject
is covered in their review standards (International
Standard on Review Engagements 2410). Reviewing
interim financial information is covered by the ASB
standards in AU–C 930.
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E:\FR\FM\25JNN2.SGM
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Analogous ASB
standard (AU–C)
36647
Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
AS reference
Title
PCAOB reference (AU section or
AS No.)
Analogous IAASB
standard (ISA)
Analogous ASB
standard (AU–C)
2810 ............
Evaluating Audit Results .....................................
AS No. 14 ....................................
2815 ............
The Meaning of ‘‘Present Fairly in Conformity
with Generally Accepted Accounting Principles‘‘.
Evaluating Consistency of Financial Statements
Consideration of Omitted Procedures After the
Report Date.
Subsequent Discovery of Facts Existing at the
Date of the Auditor’s Report.
Reports on Audited Financial Statements ...........
Dating of the Independent Auditor’s Report ........
Special Reports ...................................................
Special Reports on Regulated Companies .........
Reporting on Condensed Financial Statements
and Selected Financial Data.
Association with Financial Statements ................
Responsibilities Regarding Filings Under Federal Securities Statutes.
Reviews of Interim Financial Information ............
Letters for Underwriters and Certain Other Requesting Parties.
Reports on the Application of Accounting Principles.
Compliance Auditing Considerations in Audits of
Recipients of Governmental Financial Assistance.
Reporting on Whether a Previously Reported
Material Weakness Continues to Exist.
AU sec. 411 ................................
240, 330, 450, 500,
520 45.
700 46 .....................
240, 330, 450, 500,
520.
700.
AS No. 6 ......................................
AU sec. 390 ................................
N/A .........................
N/A .........................
708.
585.
AU sec. 561 ................................
560 .........................
560.
AU
AU
AU
AU
AU
................................
................................
................................
................................
................................
700, 705, 706, 710
560, 700 47 .............
800, 805 48 .............
210 49 .....................
810 .........................
700, 705, 706.
560, 700.
800, 805, 806.
800.
810.
AU sec. 504 ................................
AU sec. 711 ................................
N/A .........................
N/A .........................
Withdrawn by ASB.
925.
AU sec. 722 ................................
AU sec. 634 ................................
ISRE 2410 50 ..........
N/A .........................
930.
920.
AU sec. 625 ................................
N/A .........................
915.
AU sec. 801 ................................
N/A .........................
935.
AS No. 4 ......................................
N/A .........................
N/A.
2820 ............
2901 ............
2905 ............
3101
3110
3305
3310
3315
............
............
............
............
............
3320 ............
4101 ............
4105 ............
6101 ............
6105 ............
6110 ............
6115 ............
(b) Statutory Basis
The statutory basis for the proposed
rules is Title I of the Act.
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B. Board’s Statement on Burden on
Competition
Not applicable. The Board’s
consideration of the economic impacts
of the proposed rules is discussed in
section D.
C. Board’s Statement on Comments on
the Proposed Rules Received From
Members, Participants or Others
The Board initially released the
proposed rules for public comment on
March 26, 2013, in PCAOB Release No.
2013–002. The original proposal was
discussed with members of the
academic community at the PCAOB’s
Academic Conference on April 26, 2013
and with the PCAOB’s Standing
Advisory Group (‘‘SAG’’) on May 15,
2013. The Board received 19 comment
letters on the original proposal.
On May 7, 2014, the Board released a
supplemental request for comment on
the proposed reorganization in PCAOB
Release No. 2014–001. In conjunction
with issuing the supplemental request,
the Board also released on its website a
demonstration version of the
reorganized auditing standards to
facilitate review and comment on the
proposed amendments. The online
demonstration version presented the
existing auditing standards as they
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sec.
sec.
sec.
sec.
sec.
508
530
623
544
552
would look if reorganized according to
the proposed amendments included in
the supplemental request. The Board
received 7 comment letters on the
supplemental request.
The Board has carefully considered
all comments received. The Board’s
response to the comments it received
and the changes made to the rules in
response to the comments received are
discussed below.
Standard No. 4, Reporting on Whether a
Previously Reported Material Weakness
Continues to Exist, to the ‘‘Other Matters
Associated with Audits’’ category; 52
changing the title of existing standard
AU sec. 331, Inventories, to ‘‘Auditing
Inventories’’; 53 and expanding the
numbering interval between standards
to allow more flexibility for future
standard setting.54
Comments on the Proposed Approach
for Reorganizing PCAOB Auditing
Standards
Commenters generally supported the
proposed reorganization of PCAOB
auditing standards. Commenters that
supported the Board’s use of a
distinguishable organizational structure
generally supported the category and
subcategory approach to reorganizing
the auditing standards and the use of a
four-digit numbering system.
The Board has made certain
refinements to the reorganization that
are consistent with comments received.
Those changes include: Moving the
subcategory ‘‘Auditing Internal Control
Over Financial Reporting’’ and its
related standard to follow the
subcategory ‘‘Audit Planning and Risk
Assessment’’; 51 moving Auditing
the subcategory ‘‘Audit Planning and Risk
Assessment.’’
52 The illustration of the reorganized auditing
standards presented above reflects the amendments
to move this standard to the category ‘‘Other
Matters Associated with Audits.’’
53 In addition to this name change, the illustration
of the reorganized auditing standards presented
above reflects the amendments to change the
auditing standard titles to make them more
consistent in style with other standards or to clarify
the subject of the standard. These changes include:
(i) Renaming subcategory 2700 as ‘‘Auditor’s
Responsibilities Regarding Supplemental and Other
Information’’ (from ‘‘Auditor’s Responsibilities
Regarding Supplementary and Other Information’’)
to be consistent with the title of AS 2701, Auditing
Supplemental Information Accompanying Audited
Financial Statements, and (ii) changing the
reference number of AS 3105, Dating of the
Independent Auditor’s Report, to AS 3110 to make
room if the proposed auditing standard, The
Auditor’s Report on an Audit of Financial
Statements When the Auditor Expresses an
Unqualified Opinion, is adopted by the Board.
54 The supplemental request included a
refinement to generally expand the numbering
interval within the subcategories from a four–digit
number structure using consecutive numbering to
using increments of five. This change allows for
more flexibility for future standards. However, the
51 The illustration of the reorganized auditing
standards presented above reflects the movement of
the subcategory ‘‘Auditing Internal Control Over
Financial Reporting’’ and its related standard after
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Some commenters suggested other
changes to certain categories and
subcategories. For example, some
commenters suggested renaming
subcategory 2200 ‘‘Audit Procedures in
Response to Risks—Nature, Timing, and
Extent’’ as ‘‘Audit Evidence’’ and
eliminating subcategories 2300 (‘‘Audit
Procedures for Specific Aspects of the
Audit’’) and 2400 (‘‘Audit Procedures
for Certain Accounts or Disclosures’’).
Those commenters also suggested
moving the auditing standards under
those subcategories into the retitled
subcategory because such standards
relate to obtaining audit evidence.
However, those commenters did not
suggest moving other standards that also
involve obtaining audit evidence, such
as the standard on identifying and
assessing risks. Revising the titles of
certain categories and subcategories to
be more general, thereby encompassing
more standards, would make the
reorganized standards more difficult to
navigate and would not follow the audit
process as closely as the proposed
reorganization. Therefore these changes
were not made.
The Board also received comments
that suggested moving individual
standards to different categories. Some
commenters suggested moving AU sec.
336, Using the Work of a Specialist, and
AU sec. 543, Part of Audit Performed by
Other Independent Auditors, from the
‘‘General Auditing Standards’’ category
to the ‘‘Audit Procedures’’ category as
these standards include specific
auditing procedures. Another
commenter suggested keeping these
standards within the general category
but moving them into a new subcategory
titled ‘‘Using the Work of Others.’’
These changes were not made. These
standards were intentionally placed
near Auditing Standard No. 10,
Supervision of the Audit Engagement,
because, in certain situations, other
auditors and auditors’ specialists
already are required to be supervised
pursuant to that supervision standard.
Also, some commenters suggested
moving one or more of the following
standards from the ‘‘Audit Procedures’’
category to the ‘‘Auditor Reporting’’
category as these standards include
amendments do not change the intervals between
AS 2501, Auditing Accounting Estimates, AS 2502,
Auditing Fair Value Measurements and Disclosures,
and AS 2503, Auditing Derivative Instruments,
Hedging Activities, and Investments in Securities,
as the Board has a standard-setting project that is,
among other things, considering a combined
standard to include the topics addressed by these
standards. As part of that project, the Board will
decide which topics, if any, to combine, which
topics will be maintained as separate standards, and
whether the numbering of these standards should
be modified.
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aspects related to reporting on the
financial statements: (i) Auditing
Standard No. 17, Auditing
Supplemental Information
Accompanying Audited Financial
Statements; (ii) AU sec. 558, Required
Supplementary Information; and (iii)
Auditing Standard No. 6, Evaluating
Consistency of Financial Statements.
However, moving these standards to the
reporting section of the reorganization
might lead auditors to overlook
performance requirements in those
standards. Thus, those three standards
remain in the ‘‘Audit Procedures’’
category.
Comments on Rescinding Certain
Interim Auditing Standards
Some commenters suggested retaining
AU sec. 532, noting that auditors
sometimes need to restrict the use of
their reports, and expressed a concern
that rescinding AU sec. 532 might be
perceived as precluding auditors from
restricting the use of those reports. The
commenters cited examples of specific
situations in which the use of audit
reports should be restricted and
indicated that auditors look to AU sec.
532 for the applicable reporting
language. The Board observed that the
examples cited by the commenters
related to situations that were already
addressed by other PCAOB standards or
rules.55 Accordingly, retaining AU sec.
532 is unnecessary in those situations.
Commenters also cited Auditing
Standard No. 16, Communications with
Audit Committees, but that standard, by
its terms, does not require the auditor to
restrict the use of audit committee
communications. Since the comments
received did not identify a specific need
for retaining AU sec. 532, the Board
asked in the supplemental request for
examples of situations that support
keeping this standard.
Some commenters also raised
questions regarding restricting the use of
audit committee communications under
Auditing Standard No. 16. Specifically,
commenters observed that footnote 41 of
Auditing Standard No. 16 cites AU sec.
532 and that AU sec. 532, as amended,
lists audit committee communications
55 Specifically, commenters cited situations
covered by AU sec. 325, Communications About
Control Deficiencies in an Audit of Financial
Statements, and AU sec. 623, Special Reports,
which address use restrictions in those situations.
One commenter identified PCAOB Rule 3524, Audit
Committee Pre-approval of Certain Tax Services,
Rule 3525, Audit Committee Pre-approval of Nonaudit Services Related to Internal Control Over
Financial Reporting, and Rule 3526,
Communication with Audit Committees Concerning
Independence. That commenter acknowledged,
however, that those communications are not reports
that are covered by AU sec. 532, which applies to
audit reports that are the ‘‘by-product’’ of an audit.
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pursuant to Auditing Standard No. 16 as
‘‘by-product’’ reports whose use should
be restricted.56 However, even in the
absence of AU sec. 532, nothing
precludes auditors from restricting the
use of communications to audit
committees under Auditing Standard
No. 16.57 Therefore, the Board is
rescinding AU sec. 532 as proposed.
The Board also received comments
about retaining or rescinding other
interim auditing standards. One
commenter suggested retaining AU sec.
901 and combining it with AU sec. 331,
Inventories. As discussed in the original
proposal, AU sec. 901 reports the
conclusions of a 1966 study of the
AICPA Committee on Auditing
Procedure on the accountability of
warehousemen for goods stored in
public warehouses. AU sec. 901 is
unnecessary because the specific
auditing requirements regarding
inventory held in public warehouses are
set forth in AU sec. 331. Therefore, the
Board is rescinding this standard as
proposed.
A commenter suggested rescinding
AU sec. 625, Reports on the Application
of Accounting Principles, AU sec. 801,
Compliance Auditing Considerations in
Audits of Governmental Entities and
Recipients of Governmental Financial
Assistance, and AU sec. 544, Lack of
Conformity with Generally Accepted
Accounting Principles. Another
commenter expressed support for
retaining AU sec. 625. The Board is not
rescinding these standards at this time
because they cover situations that may
be related to audits of issuers.
Comments on Interpretive Publications
Some commenters suggested that the
PCAOB retain the practice of presenting
interpretations with the related auditing
standards along with adding other
Board-issued guidance. Another
commenter suggested a numbering
convention analogous to the existing
auditing interpretations, specifically,
using a ‘‘9’’ prefix before the standard
number. The Board is adopting the
56 See paragraphs .07 and .11 of AU sec. 532. AU
sec. 532.07 also listed reports issued pursuant to
AU sec. 325 and AU sec. 623 as by-product reports.
57 If an auditor decides to restrict the use of
certain reports to a company’s audit committee, he
or she may consider the direction provided by other
standards that address restricting the use of reports,
such as AS 1305.06 (formerly AU sec. 325.6). That
standard requires that the auditor’s written
communication to the audit committee include a
statement that the communication is intended
solely for the information and use of the board of
directors, audit committee, management, and others
within the organization. It further provides that
when there are requirements established by
governmental authorities to furnish such written
communications, specific reference to such
regulatory authorities may be made.
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organizational structure and numbering
of the auditing interpretations as
proposed. It is important to distinguish
standards from auditing interpretations
and guidance because, among other
reasons, an auditor’s responsibility
related to auditing standards differs
from the auditor’s responsibility
regarding auditing interpretations and
other interpretive publications. The
Board is also adopting the numbering
convention as presented in the
supplemental request. The titles of the
interpretations (along with the
hyperlinks) identify the corresponding
standards, which should help auditors
and other users associate the
interpretations with their related
standards. The Board will continue to
assess the need to update the guidance
in the auditing interpretations.
The Board proposed to remove from
PCAOB auditing standards references to
AICPA Audit and Accounting Guides
and AICPA auditing Statements of
Position. Commenters responded that
auditors historically have used audit
and accounting guides in their audits of
companies in specialized industries,
and they offered a variety of suggestions
about how the Board should treat them,
such as retaining the existing references
in PCAOB standards, acknowledging the
usefulness of current editions of the
guides, or replacing them with the
Board’s own specialized industry
guidance.
The Board is adopting the
amendments to remove references to
AICPA Audit and Accounting Guides
and AICPA auditing Statements of
Position because the guides referenced
in PCAOB standards are outdated.58
While auditors might consider more
recent editions of audit and accounting
guides or other materials to be useful
reference materials—for example, for
information about specialized
industries—the auditor’s responsibility
is to comply with PCAOB auditing and
related professional practice standards.
In connection with its oversight
activities, the PCAOB will continue to
consider developing guidance on the
application of PCAOB standards when
the need arises.
Comments on Amendments To Remove
References to Superseded Standards
As discussed above, the Board
received comments on its amendments
to remove references to a superseded
auditing standard and auditing
interpretation in interpretation 4 of AT
sec. 9101, which includes illustrative
letters to regulators when they request
access to or copies of attestation
documentation. Commenters indicated
that the proposed amendments caused
the interpretation to lack context
because the amendments removed the
introductory paragraphs to the
illustrative letters. Therefore, the
amendments as adopted by the Board
include a paragraph that introduces the
illustrative letters while eliminating the
superseded references.
As described above, the Board
proposed amendments to update the
illustrative auditor’s reports within the
interim standards with the requirements
in Auditing Standard No. 1 and thus
Comments on the Effective Date
The original proposal requested
commenters to provide factors the Board
should consider in determining the
effective date. Factors provided by
commenters, among other things,
included providing sufficient time for
firms to update their methodologies,
reference materials, and practice aids
and to train staff. One commenter, an
accounting firm, also suggested using a
single transition date as opposed to a
date dependent on the year end of an
issuer, broker, or dealer as from that
firm’s perspective a single date would
facilitate a more efficient transition to
the reorganization.
After considering the comments
received and the timing of the adoption
of the reorganization, the Board has
determined that the accompanying
reorganization and related amendments
58 AICPA Audit and Accounting Guides and
auditing Statements of Position referenced in
PCAOB standards are the editions of those
publications as in existence on April 16, 2003.
59 For example, the amendments would not
preclude an unregistered firm that applies PCAOB
standards from omitting ‘‘Registered’’ from the title
of its report.
Comments on Amendments to
Illustrative Auditor’s Reports
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supersede the respective auditing
standard. Although the Board received
no comments on its proposal to
supersede Auditing Standard No. 1, one
commenter suggested that the title of
illustrative auditor’s reports in the
PCAOB’s standards also be revised to
reflect the title used in Auditing
Standard No. 1’s illustrative reports
(that is, change the title of the
illustrative reports to ‘‘Report of
Independent Registered Public
Accounting Firm’’). The Board is
adopting the amendments and
superseding Auditing Standard No. 1 as
proposed and, as suggested, is adding
amendments to change the title of
illustrated reports included in the
standards. The amendments do not
change the requirements for the content
of the auditor’s report.59
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36649
will be effective, subject to SEC
approval, as of December 31, 2016. If the
adopted amendments accompanying
this release are approved by the SEC,
nothing precludes auditors and others
from using and referencing the
reorganized standards before the
effective date, as the amendments do
not substantively change the standards’
requirements.
Other Comments
The Board received other comments
that are not directly related to the
amendments. Some comments generally
related to possible other enhancements
to the Board’s standards or the
presentation of standards on the PCAOB
website, in many cases consistent with
potential enhancements discussed in
the original proposal and supplemental
request. In general, these suggested
enhancements involved:
• Updating outdated references to
generally accepted accounting
principles (‘‘GAAP’’) within the
auditing standards;
• Reorganizing PCAOB guidance into
an integrated topical structure;
• Adding links on the website from
the auditing standards to related
guidance; and
• Adding features to the Board’s
standards on the website, such as
converting cross-references into
hyperlinks.
The Board plans to address GAAP
references in its standards in the context
of future standard-setting activities
because updating these references could
involve substantive changes to the
auditing standards that are outside the
near-term scope of this project. Also, the
Board plans to consider ways to
enhance the usability of PCAOB
guidance. Additionally, the Board
continues to consider opportunities for
improving its website.60
The Board also received comments
advocating other actions besides
reorganizing PCAOB auditing standards
as described in the original proposal.
For example, some of those commenters
suggested full convergence with the
IAASB or ASB standards or adopting
the standards of the IAASB or ASB and
adding incremental requirements for the
auditor to perform when conducting an
audit of an issuer. As the Board has
explained previously:
[B]ecause the Board’s standards must be
consistent with the Board’s statutory
mandate, differences will continue to exist
60 The Board updates its website to reflect
changes to the Board rules and standards that are
approved by the SEC. Accordingly, if the
amendments are approved by the SEC, the PCAOB
would update its website to reflect the auditing
standards as reorganized.
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between the Board’s standards and the
standards of the IAASB and ASB e.g., when
the Board decides to retain an existing
requirement in PCAOB standards that is not
included in IAASB or ASB standards. Also,
certain differences are often necessary for the
Board’s standards to be consistent with
relevant provisions of the federal securities
laws or other existing standards or rules of
the Board. Also, the Board’s standards-setting
activities are informed by and developed to
some degree, in response to observations
from its oversight activities.61
Nevertheless, the PCAOB continues to
consider carefully the work of the
IAASB and ASB in PCAOB standardsetting projects. Additionally, the Board
will consider the organization and
content of individual standards during
the course of future standard-setting
projects.
For a discussion on comments
received on the cost and benefits of the
reorganization, see section D.
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D. Economic Considerations and
Application to Audits of Emerging
Growth Companies
This section discusses economic
considerations related to the
reorganization, specifically, the need for
rulemaking, alternatives considered,
description of the baseline, and
consideration of benefits and costs. It
also discusses considerations related to
audits of EGCs and audits of brokers and
dealers.
Need for Rulemaking
As discussed in more detail in section
A, the reorganization creates a
standardized organizational structure of
PCAOB auditing standards to enhance
the usability of the standards, including
helping users navigate the standards
more easily. This could help auditors,
for example, find more easily the
relevant requirements in PCAOB
standards for a particular area of the
audit, which could facilitate compliance
with PCAOB standards.
The reorganization also could help
avoid potential confusion between the
Board’s standards and the recently
reorganized standards of the ASB, if the
same AU section reference was used for
different standards covering different
topics.
In addition, the reorganization would
provide a structure for updating PCAOB
standards in the future.
Commenters generally supported the
reorganization of PCAOB auditing
standards.
Consideration of Alternatives
In the original proposal, the Board
outlined three alternatives to the
61 See PCAOB Release 2010–004, at A10–91–
A10–92.
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proposed approach 62 for reorganizing
the standards:
1. Continue issuing sequentially
numbered standards until all of the
interim standards are replaced;
2. Retain the organizational structure
of the existing interim standards and
assign section numbers to Board-issued
standards that would fit into the
existing organizational structure; or
3. Adopt the organizational structure
of another auditing standard setter, such
as the IAASB.
The first alternative would eventually
result in a single structure and would
avoid the potential confusion between
PCAOB auditing standards and the
standards of other standard setters.
However, this alternative would take
years for users to receive its benefits,
and, under this approach, the standards
would be more difficult to navigate than
a topical system.
The second alternative would provide
little benefit to users because it has few
categories and is less intuitive than an
organized structure that follows the flow
of the audit process. In addition, as the
ASB continues to use a three-digit
system to reference its standards, the
potential for confusion between the
standards of the Board and the
standards of the AICPA, as previously
discussed in section A, would remain.
The third alternative could be
confusing to users if PCAOB standards
and IAASB standards used the same
section numbers for standards that
address different topics. Similar issues
would arise if the PCAOB adopted the
organizational structure of the clarified
ASB standards.
Other commenters suggested that the
PCAOB collaborate with other standard
setters to develop a unified framework
for auditing standards or to develop a
codification of the auditing standards in
a manner similar to the approach taken
by the FASB with its accounting
standards.63 Another commenter
suggested that the Board limit time
spent on this project and instead focus
its efforts on other matters on the
Board’s standard-setting agenda. The
Board’s reorganization of the auditing
standards provides immediate benefits
to users, such as making standards
easier to navigate and establishing a
structure for future updates of the
standards. Thus, the Board decided to
proceed with this project.
As previously discussed, the majority
of commenters were in favor of the
62 The Board proposed the approach described in
section A because it addresses more fully the
reasons for the reorganization.
63 For example, this approach might apply an
Area, Topic, Subtopic, and Section structure.
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Board using a distinguishable
organizational structure. Those
commenters supported the organization
as proposed or offered suggestions to the
proposed reorganization such as
changes to the titles, categorization, or
sequence of existing standards and
guidance. The Board has made some
refinements to the organizational
structure and amendments presented in
the original proposal and supplemental
request, as discussed above.
Baseline
The existing organizational structure
of PCAOB auditing standards is
described in section A as consisting of
sequentially numbered AS standards
and AU sections representing the
remaining interim standards that the
Board has not superseded. The Board
believes this current organizational
structure is generally reflected in
references made in firm methodologies,
commercially published guidance, and
other technology tools, and therefore
constitutes the baseline against which
impacts can be considered.
Consideration of Benefits and Costs
The reorganization of PCAOB
auditing standards involves
amendments that do not impose
additional requirements on auditors or
substantively change the requirements
of PCAOB standards. Thus, the
reorganization is not expected to affect
the manner in which audits are
performed and reported under PCAOB
standards.
As discussed previously, benefits of
the reorganization stem from a single,
integrated organizational structure for
PCAOB auditing standards that is easier
for auditors and others to use. Among
other things, this could help auditors
find more easily the relevant
requirements in PCAOB standards for a
particular area of the audit, which could
facilitate compliance with PCAOB
standards. It also could help avoid the
potential for confusion between PCAOB
standards and ASB standards.
As discussed in the original proposal,
the primary incremental costs of the
changes related to the reorganization
would be costs to registered firms of
updating references within firm
methodologies, related reference
materials, and practice aids to reflect the
new citations to PCAOB auditing
standards, as well as training on the
new organizational structure. The
adopted reorganization is likely to have
less cost than approaches suggested by
some commenters—for example, a
unified framework or FASB-like
codification—that would involve
substantial redrafting of PCAOB
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auditing standards and therefore the
potential for more extensive
modifications to registered firms’
methodologies and related materials.
Comments on potential benefits and
costs of the proposal generally were
consistent with these views.
Commenters who advocated using the
IAASB or ASB organizational structure
or working with other standard setters
to develop a unified organizational
structure cited additional costs
associated with supporting compliance
with two different sets of auditing
standards. However, the costs cited by
the commenters stem principally from
differences in the standards themselves
rather than how they are organized.
Furthermore, the reorganization
involves changing the titles,
categorization, or sequence of existing
standards and guidance; it does not
create a new set of auditing standards.
In addition, reorganizing the standards
to make them easier to navigate should
help users of the standards compare
PCAOB standards to IAASB and ASB
standards.
Application to Audits of Emerging
Growth Companies
The Board does not anticipate that the
preceding economic considerations
would be different for audits of EGCs, as
defined by the Jumpstart Our Business
Startups Act of 2012 (‘‘JOBS Act’’).64
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64 See Section 101 of the JOBS Act. As of
September 30, 2014, based on the PCAOB’s
research, 1,726 SEC registrants have identified
themselves as EGCs in SEC filings. These
companies operate in diverse industries with
Standard Industrial Classification codes such as
pharmaceutical preparations, blank checks, real
estate investment trusts, prepackaged software
services, business services, metal mining, and
computer processing/data preparations services. For
EGCs in which audited financial statements were
available, those companies reported assets ranging
from zero to approximately $13.0 billion, with an
average and median of $199.0 million and
approximately $2.4 million, respectively. The
companies reported revenue ranging from zero to
approximately $993.5 million, with an average and
median of $59.8 million and $21 thousand,
respectively. Approximately 44 percent of the
companies were audited by accounting firms that
issued audit reports for more than 100 public
company audit clients, and the remainder of the
companies were audited by firms that issued audit
reports for 100 or fewer public company audit
clients.
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Pursuant to Section 104 of the JOBS Act,
any rules adopted by the Board
subsequent to April 5, 2012, do not
apply to the audits of EGCs (as defined
in Section 3(a)(80) of the Exchange Act)
unless the SEC ‘‘determines that the
application of such additional
requirements is necessary or appropriate
in the public interest, after considering
the protection of investors and whether
the action will promote efficiency,
competition, and capital formation.’’ 65
As discussed previously, the
reorganization of PCAOB auditing
standards would involve amendments
that do not impose additional
requirements on auditors or change
substantively the requirements of
PCAOB standards. Thus, the
reorganization, including the
amendments, is not expected to affect
the manner in which audits are
performed and reported under PCAOB
standards, including audits of EGCs.
The Board sought comment on the
effect, if any, the reorganization would
have specifically on audits of EGCs.
Commenters indicated that they were
not aware of any costs that would be
specific to audits of EGCs when
compared to costs of non-EGC audits.
Accordingly and pursuant to the
above discussion, the PCAOB requests
that the Commission determine that it is
necessary or appropriate in the public
interest, after considering the protection
of investors and whether the action will
promote efficiency, competition, and
capital formation, to apply these
amendments to audits of EGCs.
compliance with SEC requirements be
performed in accordance with the
standards of the PCAOB, effective for
fiscal years ending on or after June 1,
2014.67 Commenters agreed with the
Board’s view that the reorganization is
appropriate for all audits, including
audits of brokers and dealers.
Audits of Brokers and Dealers
Section 982 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (‘‘Dodd-Frank Act’’) 66 expanded the
authority of the Board to oversee the
audits of brokers and dealers that are
required under SEC rules. On July 30,
2013, the SEC amended its rules,
including SEC Rule 17a–5 under the
Exchange Act, to require, among other
things, that audits of brokers’ and
dealers’ financial statements and
examinations of reports regarding
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/pcaob.shtml); or
• Send an e-mail to rule-comments@
sec.gov. Please include File Number
PCAOB–2015–01 on the subject line.
65 See
JOBS Act, Public Law 112–106, § 104.
66 Public Law 111–203, 124 Stat. 1376 (July 21,
2010).
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III. Date of Effectiveness of the
Proposed Rules and Timing for
Commission Action
Pursuant to Section 19(b)(2)(A)(ii) of
the Exchange Act, and based on its
determination that an extension of the
period set forth in Section 19(b)(2)(A)(i)
of the Exchange Act is appropriate in
light of the PCAOB’s request that the
Commission, pursuant to Section
103(a)(3)(C) of the Sarbanes-Oxley Act,
determine that the proposed rules apply
to audits of emerging growth companies,
as defined in Section 3(a)(80) of the
Exchange Act, the Commission has
determined to extend to September 23,
2015 the date by which the Commission
should take action on the proposed
rules.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rules
are consistent with the requirements of
Title I of the Act. Comments may be
submitted by any of the following
methods:
Electronic Comments
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549–1090.
67 See SEC, Broker-Dealer Reports, Securities
Exchange Act of 1934 Release No. 70073 (July 30,
2013), 78 Federal Register 51910 (August 21, 2013),
which includes the final rules.
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Federal Register / Vol. 80, No. 122 / Thursday, June 25, 2015 / Notices
asabaliauskas on DSK5VPTVN1PROD with NOTICES
All submissions should refer to File
Number PCAOB–2015–01. This file
number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet website (https://www.sec.gov/
rules/pcaob.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rules that
are filed with the Commission, and all
written communications relating to the
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proposed rules between the Commission
and any person, other than those that
may be withheld from the public in
accordance with the provisions of 5
U.S.C. 552, will be available for website
viewing and printing in the
Commission’s Public Reference Room,
100 F Street NE., Washington, DC
20549–1090, on official business days
between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing will also
be available for inspection and copying
at the principal office of the PCAOB. All
comments received will be posted
without change; we do not edit personal
PO 00000
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identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number PCAOB–
2015–01 and should be submitted on or
before July 16, 2015.
For the Commission, by the Office of the
Chief Accountant, by delegated authority.68
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015–15571 Filed 6–24–15; 8:45 am]
BILLING CODE 8011–01–P
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[Federal Register Volume 80, Number 122 (Thursday, June 25, 2015)]
[Notices]
[Pages 36601-36652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15571]
[[Page 36601]]
Vol. 80
Thursday,
No. 122
June 25, 2015
Part II
Securities and Exchange Commission
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Public Company Accounting Oversight Board; Notice of Filing of
Proposed Rules to Implement the Reorganization of PCAOB Auditing
Standards and Related Changes to PCAOB Rules and Attestation, Quality
Control, and Ethics and Independence Standards; Notice
Federal Register / Vol. 80 , No. 122 / Thursday, June 25, 2015 /
Notices
[[Page 36602]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75251; File No. PCAOB 2015-01]
Public Company Accounting Oversight Board; Notice of Filing of
Proposed Rules to Implement the Reorganization of PCAOB Auditing
Standards and Related Changes to PCAOB Rules and Attestation, Quality
Control, and Ethics and Independence Standards
June 19, 2015.
Pursuant to Section 107(b) of the Sarbanes-Oxley Act of 2002 (the
``Act''), notice is hereby given that on June 17, 2015, the Public
Company Accounting Oversight Board (the ``Board'' or the ``PCAOB'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the proposed rules described in items I and II below,
which items have been prepared by the Board. The Commission is
publishing this notice to solicit comments on the proposed rules from
interested persons.
I. Board's Statement of the Terms of Substance of the Proposed Rules
On March 31, 2015, the Board adopted amendments to implement the
reorganization of PCAOB auditing standards and related changes to PCAOB
rules and attestation, quality control, and ethics and independence
standards (collectively referred to as, the ``amendments'' or the
``proposed rules'').
The text of the proposed rules is set out below.
Amendments to Rules of the Board
Rule 3101. Certain Terms Used in Auditing and Related Professional
Practice Standards
Rule 3101. Certain Terms Used in Auditing and Related Professional
Practice Standards, is amended as follows:
In paragraph (b), the phrase ``adopted in Rules 3200T, 3300T,
3400T, 3500T, and 3600T'' is deleted.
Rule 3200T. Interim Auditing Standards
Rule 3200T. Interim Auditing Standards, is amended as follows:
The letter ``T'' is removed from the reference to Rule
3200T.
The word ``Interim'' is removed from the title of the
rule.
The text of the rule is replaced with the following:
In connection with the preparation or issuance of any audit report,
a registered public accounting firm and its associated persons shall
comply with all applicable auditing standards adopted by the Board and
approved by the SEC, including, to the extent not superseded or amended
by the Board, AICPA Statements on Auditing Standards as in existence on
April 16, 2003.
Amendments to PCAOB Standards
Auditing Standards and Interpretations
Auditing Standard No. 1, References in Auditors' Reports to the
Standards of the Public Company Accounting Oversight Board \1\
---------------------------------------------------------------------------
\1\ The captions in this section refer to the numbers and titles
of existing PCAOB auditing standards and interpretations.
---------------------------------------------------------------------------
Auditing Standard No. 1, References in Auditors' Reports to the
Standards of the Public Company Accounting Oversight Board, is
superseded.
Auditing Standard No. 3, Audit Documentation
Auditing Standard No. 3, Audit Documentation, as amended, is
amended as follows:
a. The section number ``Auditing Standard No. 3'' is replaced with
``AS 1215.''
b. In the references before paragraph 1, the phrase ``[supersedes
SAS No. 96, Audit Documentation]'' is deleted.
c. Paragraph numbers 1 through 21 are replaced with .01 through
.21.
d. In footnote 1 to paragraph 4, the reference to ``paragraph 12''
is replaced with ``paragraph .12.''
e. In footnote 2 to paragraph 6, the reference to ``paragraphs 28-
33 of Auditing Standard No. 5'' is replaced with ``paragraphs .28-.33
of AS 2201.''
f. In paragraph 9:
The parenthetic reference to ``paragraph 15'' is replaced
with ``paragraph .15.''
In the first bullet, the reference to ``paragraph 16'' is
replaced with ``paragraph .16.''
In the second bullet, the reference to ``AU sec. 390'' is
replaced with ``AS 2901.''
g. In footnote 2A to paragraph 12a:
The reference to ``paragraphs 12-13 of Auditing Standard
No. 12'' is replaced with ``paragraphs .12-.13 of AS 2110.''
The reference to ``AU sec. 316'' is replaced with ``AS
2401.''
h. In footnote 2B to paragraph 12c, the reference to ``paragraphs
10-23 of Auditing Standard No. 14'' is replaced with ``paragraphs
.10-.23 of AS 2810.''
i. In footnote 2C to paragraph 12f:
The reference to ``paragraph 74 of Auditing Standard No.
12, Identifying and Assessing Risks of Material Misstatement,'' is
replaced with ``AS 2110.74.''
The reference to ``paragraph 36 of Auditing Standard No.
14, Evaluating Audit Results'' is replaced with ``AS 2810.36.''
j. In the second sentence of paragraph 17, the reference to ``AU
sec. 711, Filings Under Federal Securities Statutes'' is replaced with
``AS 4101, Responsibilities Regarding Filings Under Federal Securities
Statutes.''
k. In the first sentence of paragraph 18, the reference to
``paragraphs 4-13'' is replaced with ``paragraphs .04-.13.''
l. In paragraph 19a, the reference to ``paragraphs 12 and 13'' is
replaced with ``paragraphs .12 and .13.''
m. In paragraph 19c, the reference to ``paragraph 8'' is replaced
with ``paragraph .08.''
n. In the last sentence of paragraph 19, the reference to ``AU sec.
543, Part of Audit Performed by Other Independent Auditors,'' is
replaced with ``AS 1205, Part of the Audit Performed by Other
Independent Auditors.''
Auditing Standard No. 4, Reporting on Whether a Previously Reported
Material Weakness Continues to Exist
Auditing Standard No. 4, Reporting on Whether a Previously Reported
Material Weakness Continues to Exist, as amended, is amended as
follows:
a. The section number ``Auditing Standard No. 4'' is replaced with
``AS 6115.''
b. Paragraph numbers 1 through 65 are replaced with .01 through
.65.
c. In Note 1 to paragraph 1, the reference to ``Auditing Standard
No. 5'' is replaced with ``AS 2201.''
d. In paragraph 2:
In item (1), the reference to ``Auditing Standard No. 5,
An Audit of Internal Control Over Financial Reporting That Is
Integrated with An Audit of Financial Statements,'' is replaced with
``AS 2201.''
In item (2), the reference to ``Auditing Standard No. 5''
is replaced with ``AS 2201.''
The parenthetic reference to ``paragraph 26'' is replaced
with ``paragraph .26.''
In the note, the reference to ``Auditing Standard No. 5,
An Audit of Internal Control Over Financial Reporting That Is
Integrated with An Audit of Financial Statements'' is replaced with
``AS 2201.''
e. In the last sentence of paragraph 4, the reference to ``Auditing
Standard No. 5, An Audit of Internal Control Over Financial Reporting
That Is Integrated with An Audit of Financial Statements,'' is replaced
with ``AS 2201.''
f. In paragraph 7e, the reference to ``paragraph 48'' is replaced
with ``paragraph .48.''
g. In paragraph 8, the reference to ``paragraph 7'' is replaced
with ``paragraph .07.''
[[Page 36603]]
h. In paragraph 9, the reference to ``Auditing Standard No. 5, An
Audit of Internal Control Over Financial Reporting That Is Integrated
with An Audit of Financial Statements'' is replaced with ``AS 2201.''
i. In paragraph 10:
In the first sentence, the reference to ``Paragraph 5 of
Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements,''
is replaced with ``AS 2201.05.''
In the first sentence of the note, the reference to
``Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements,''
is replaced with ``AS 2201.''
j. In paragraph 11, the reference to ``Auditing Standard No. 5, An
Audit of Internal Control Over Financial Reporting That Is Integrated
with An Audit of Financial Statements'' is replaced with ``AS 2201.''
k. In footnote 2 to paragraph 13, the reference to ``paragraph 42
of Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements'' is
replaced with ``AS 2201.42.''
l. In the last sentence of the note to paragraph 17, the reference
to ``Auditing Standard No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated with An Audit of Financial
Statements'' is replaced with ``AS 2201.''
m. In Note 2 to paragraph 18, the reference to ``Auditing Standard
No. 5, An Audit of Internal Control Over Financial Reporting That Is
Integrated with An Audit of Financial Statements'' is replaced with
``AS 2201.''
n. In the first sentence of paragraph 23, the reference to
``paragraph 20 of Auditing Standard No. 5, An Audit of Internal Control
Over Financial Reporting That Is Integrated with An Audit of Financial
Statements'' is replaced with ``AS 2201.20.''
o. In the last sentence of paragraph 24, the reference to
``paragraph 9 of Auditing Standard No. 5, An Audit of Internal Control
Over Financial Reporting That Is Integrated with An Audit of Financial
Statements'' is replaced with ``AS 2201.09.''
p. In paragraph 25:
In the last sentence, the reference to ``Auditing Standard
No. 5, An Audit of Internal Control Over Financial Reporting That Is
Integrated with An Audit of Financial Statements,'' is replaced with
``AS 2201.''
In the note:
Each reference to ``Auditing Standard No. 5, An Audit of
Internal Control Over Financial Reporting That Is Integrated with An
Audit of Financial Statements,'' is replaced with ``AS 2201.''
In the second sentence, the reference to ``paragraphs 26a-
b and 27'' is replaced with ``paragraphs .26a-b and .27.''
In the last sentence, the reference to ``paragraphs 26 and
27'' is replaced with ``paragraphs .26 and .27.''
q. In paragraph 26:
In the first sentence, the reference to ``paragraph 5'' is
replaced with ``paragraph .05.''
In footnote 3, the reference to ``paragraph .02 of AU sec.
315, Communications Between Predecessor and Successor Auditors'' is
replaced with ``paragraph .02 of AS 2610, Initial Audits--
Communications Between Predecessor and Successor Auditors.''
r. In the first sentence of paragraph 26a, the reference to
``paragraphs 22-27 of Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of
Financial Statements'' is replaced with ``AS 2201.22-.27.''
s. In paragraph 26b, the reference to ``paragraphs 34-38 of
Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements,''
is replaced with ``AS 2201.34-.38.''
t. In the first sentence of paragraph 26c, the reference to ``AU
sec. 315, Communications Between Predecessor and Successor Auditors''
is replaced with ``AS 2610.''
u. In paragraph 27:
In the first sentence, the reference to ``paragraph 26''
is replaced with ``paragraph .26.''
In the last sentence, the reference to ``Auditing Standard
No. 5, An Audit of Internal Control Over Financial Reporting That Is
Integrated with An Audit of Financial Statements'' is replaced with
``AS 2201.''
v. In the last sentence of paragraph 28, the reference to
``paragraph 7'' is replaced with ``paragraph .07.''
w. In the last sentence of paragraph 31, the reference to
``paragraphs 42-43 of Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of
Financial Statements'' is replaced with ``AS 2201.42-.43.''
x. In paragraph 32:
In the first sentence, the reference to ``paragraphs 44-45
of Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements'' is
replaced with ``AS 2201.44-.45.''
In the last sentence, the reference to ``paragraphs 50-54
of Auditing Standard No. 5'' is replaced with ``AS 2201.50-.54.''
y. In the third sentence of paragraph 33, the reference to
``paragraphs 22-24 of Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of
Financial Statements'' is replaced with ``AS 2201.22-.24.''
z. In paragraph 35, the reference to ``Auditing Standard No. 5, An
Audit of Internal Control Over Financial Reporting That Is Integrated
with An Audit of Financial Statements,'' is replaced with ``AS 2201.''
aa. In the last sentence of paragraph 36, the reference to
``paragraphs 16-19 of Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of
Financial Statements'' is replaced with ``AS 2201.16-.19.''
bb. In the first sentence of paragraph 38, the reference to
``Paragraphs 18-19 of Auditing Standard No. 5, An Audit of Internal
Control Over Financial Reporting That Is Integrated with An Audit of
Financial Statements,'' is replaced with ``AS 2201.18-.19.''
cc. In the first sentence of paragraph 40, the reference to ``AU
sec. 543, Part of Audit Performed by Other Independent Auditors'' is
replaced with ``AS 1205, Part of the Audit Performed by Other
Independent Auditors.''
dd. In the first sentence of the note to paragraph 43, the
reference to ``paragraph 51'' is replaced with ``paragraph .51.''
ee. In the second sentence of paragraph 46, the reference to
``paragraph 43'' is replaced with ``paragraph .43.''
ff. In paragraph 47:
In the first sentence, the reference to ``Auditing
Standard No. 3'' is replaced with ``AS 1215.''
In the second sentence, the reference to ``Paragraph 14 of
Auditing Standard No. 3'' is replaced with ``AS 1215.14.''
In the third sentence, the reference to ``paragraph 29''
is replaced with ``paragraph .29.''
In the last sentence, the reference to ``Auditing Standard
No. 3'' is replaced with ``AS 1215.''
gg. In the first sentence of paragraph 48, the reference to
``paragraph 7e'' is replaced with ``paragraph .07e.''
hh. In paragraph 50, the reference to ``paragraph 48'' is replaced
with ``paragraph .48.''
ii. In the first sentence of the note to paragraph 51b, the
reference to ``Auditing Standard No. 5, An Audit of Internal Control
Over Financial Reporting That Is Integrated with An
[[Page 36604]]
Audit of Financial Statements'' is replaced with ``AS 2201.''
jj. In the note to paragraph 51g, the reference to ``paragraph 31''
is replaced with ``paragraph .31.''
kk. In the first sentence of the note to paragraph 51l, the
reference to ``Auditing Standard No. 5, An Audit of Internal Control
Over Financial Reporting That Is Integrated with An Audit of Financial
Statements'' is replaced with ``AS 2201.''
ll. In the note to paragraph 51o, the reference to ``Auditing
Standard No. 5, An Audit of Internal Control Over Financial Reporting
That Is Integrated with An Audit of Financial Statements'' is replaced
with ``AS 2201.''
mm. In the first sentence of paragraph 52, the reference to
``Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements,''
is replaced with ``AS 2201.''
nn. In paragraph 53:
In the first sentence, the reference to ``paragraph 3'' is
replaced with ``paragraph .03.''
In the last sentence, the reference to ``paragraph 51'' is
replaced with ``paragraph .51.''
oo. In paragraph 54a, the parenthetic reference to ``paragraph 56''
is replaced with ``paragraph .56.''
pp. In paragraph 54b, the parenthetic reference to ``paragraphs 57
and 58'' is replaced with ``paragraphs .57 and .58.''
qq. In paragraph 54c, the parenthetic reference to ``paragraphs 59
through 60'' is replaced with ``paragraphs .59 through .60.''
rr. In the first sentence of paragraph 55, the reference to
``paragraph 43'' is replaced with ``paragraph .43.''
ss. In the third sentence of paragraph 57, the reference to
``paragraph 44'' is replaced with ``paragraph .44.''
tt. In the first sentence of paragraph 58, the reference to
``paragraph 61'' is replaced with ``paragraph .61.''
uu. In the first sentence of paragraph 59, the reference to
``paragraph 48'' is replaced with ``paragraph .48.''
vv. In the note to paragraph 60, each reference to ``paragraph 59''
is replaced with ``paragraph .59.''
ww. In the first sentence of paragraph 62, the reference to
``paragraph 55'' is replaced with ``paragraph .55.''
xx. In paragraph 63, the reference to ``paragraphs 7 and 29-32 of
AU sec. 722, Interim Financial Information'' is replaced with
``paragraphs .07 and .29-.32 of AS 4105, Reviews of Interim Financial
Information.''
yy. In paragraph 64:
In the second sentence, the reference to ``paragraph 56''
is replaced with ``paragraph .56.''
In the last sentence, the reference to ``paragraphs 7 and
29-32 of AU 722, Interim Financial Information'' is replaced with ``AS
4105.07 and AS 4105.29-.32.''
zz. In Appendix A, in the first sentence of the first paragraph,
the reference to ``Paragraphs 51 through 60'' is replaced with
``Paragraphs .51 through .60.''
Auditing Standard No. 5, An Audit of Internal Control Over Financial
Reporting That Is Integrated with An Audit of Financial Statements
Auditing Standard No. 5, An Audit of Internal Control Over
Financial Reporting That Is Integrated with An Audit of Financial
Statements, as amended, is amended as follows:
a. The section number ``Auditing Standard No. 5'' is replaced with
``AS 2201.''
b. Paragraph numbers 1 through 98 are replaced with .01 through
.98.
c. In footnote 3 to paragraph 2, the reference to ``Paragraph A5''
is replaced with ``Paragraph .A5.''
d. In footnote 5 to paragraph 3, the reference to ``AU sec. 230''
is replaced with ``AS 1015.''
e. In paragraph 4:
In the first sentence, the phrase ``The general
standards'' is replaced with the phrase ``The standards, AS 1005,
Independence, AS 1010, Training and Proficiency of the Independent
Auditor, and AS 1015, Due Professional Care in the Performance of
Work,.''
Footnote 6 is deleted.
f. In paragraph 14:
In the second sentence:
The reference to ``paragraph 22'' is replaced with
``paragraph .22.''
The reference to ``paragraph 39'' is replaced with
``paragraph .39.''
In footnote 10, the reference to ``Auditing Standard No.
12'' is replaced with ``AS 2110.''
In footnote 10A to the first bullet, the reference to ``AU
sec. 316'' is replaced with ``AS 2401.''
g. In paragraph 15, the reference to ``paragraphs 65-69 of Auditing
Standard No. 12, Identifying and Assessing Risks of Material
Misstatement'' is replaced with ``AS 2110.65-.69.''
h. In the last sentence of paragraph 16, the reference to ``AU sec.
322, The Auditor's Consideration of the Internal Audit Function in an
Audit of Financial Statements'' is replaced with ``AS 2605,
Consideration of the Internal Audit Function.''
i. In the third sentence of paragraph 18, the reference to
``paragraphs .09 through .11 of AU sec. 322'' is replaced with ``AS
2605.09 through .11.''
j. In footnote 11 to paragraph 20, the reference to ``Auditing
Standard No. 11'' is replaced with ``AS 2105.''
k. In footnote 12 to paragraph 28, the reference to ``Auditing
Standard No. 15'' is replaced with ``AS 1105.''
l. In footnote 13 to the note to paragraph 31:
The first parenthetic reference to ``paragraph 14 of
Auditing Standard No. 14'' is replaced with ``paragraph .14 of AS
2810.''
The second parenthetic reference to ``paragraph 61 and
paragraph 5 of Auditing Standard No. 13'' is replaced with ``paragraph
.61 and paragraph .05 of AS 2301.''
m. In paragraph 35:
The reference to ``paragraph 34'' is replaced with
``paragraph .34.''
The reference to ``AU sec. 322'' is replaced with ``AS
2605.''
n. In the second sentence of paragraph 36:
The reference to ``paragraph 29'' is replaced with
``paragraph .29.''
The reference to ``Auditing Standard No. 12, Identifying
and Assessing Risks of Material Misstatement'' is replaced with ``AS
2110.''
o. In the first sentence of paragraph 37, the reference to
``paragraph 34'' is replaced with ``paragraph .34.''
p. In paragraph 53, the parenthetic reference to ``paragraph B1''
is replaced with ``paragraph .B1.''
q. In the last sentence of paragraph 57, the reference to
``paragraphs 46 through 56'' is replaced with ``paragraphs .46 through
.56.''
r. In paragraph 58, the reference to ``paragraph 47'' is replaced
with ``paragraph .47.''
s. In the first sentence of paragraph 59, the reference to
``paragraphs 47 and 58'' is replaced with ``paragraphs .47 and .58.''
t. In the last sentence of paragraph 60, the reference to
``paragraph B28'' is replaced with ``paragraph .B28.''
u. In paragraph 73, the reference to ``paragraph C2'' is replaced
with ``paragraph .C2.''
v. In paragraph 74, the parenthetic reference to ``paragraphs C3
through C7'' is replaced with ``paragraphs .C3 through .C7.''
w. In paragraph 75g, the reference to ``paragraphs 78 and 80'' is
replaced with ``paragraphs .78 and .80.''
x. In paragraph 76, the reference to ``paragraph C3'' is replaced
with ``paragraph .C3.''
y. In paragraph 77, the reference to ``AU sec. 333'' is replaced
with ``AS 2805.''
z. In the last sentence of paragraph 84:
The reference to ``AU sec. 316, Consideration of Fraud in
a Financial
[[Page 36605]]
Statement Audit'' is replaced with ``AS 2401.''
The reference to ``AU sec. 317'' is replaced with ``AS
2405.''
aa. In paragraph 85e, the reference to ``paragraph A5'' is replaced
with ``paragraph .A5.''
bb. In paragraph 90:
In the first sentence, the reference to ``Paragraphs 62
through 70'' is replaced with ``Paragraphs .62 through .70.''
In footnote 19, the reference to ``paragraph C3'' is
replaced with ``paragraph .C3.''
cc. In the first bullet of paragraph 91, the reference to
``paragraph A7'' is replaced with ``paragraph .A7.''
dd. In the first sentence of the note to paragraph 92, the
reference to ``paragraphs 88 and 91'' is replaced with ``paragraphs .88
and .91.''
ee. In the last sentence of paragraph 93, the reference to
``paragraph 75h'' is replaced with ``paragraph .75h.''
ff. In the second sentence of paragraph 95, the reference to ``AU
sec. 560'' is replaced with ``AS 2801.''
gg. In paragraph 96:
The parenthetic reference to ``paragraph C2'' is replaced
with ``paragraph .C2.''
In the last sentence, the reference to ``paragraph C13''
is replaced with ``paragraph .C13.''
hh. In the last sentence of paragraph 98, the reference to ``AU
sec. 561'' is replaced with ``AS 2905.''
ii. In Appendix A, paragraph numbers A1 through A11 are replaced
with .A1 through .A11.
jj. In Appendix B, paragraph numbers B1 through B33 are replaced
with .B1 through .B33.
kk. In the first sentence of paragraph B5, the reference to
``paragraph B2'' is replaced with ``paragraph .B2.''
ll. In paragraph B13, the reference to ``paragraph 61'' is replaced
with ``paragraph .61.''
mm. In the fifth sentence of paragraph B16, the reference to ``AU
sec. 722, Interim Financial Information'' is replaced with ``AS 4105,
Reviews of Interim Financial Information.''
nn. In paragraph B17:
In the first sentence, the reference to ``AU sec. 324,
Service Organizations,'' is replaced with ``AS 2601, Consideration of
an Entity's Use of a Service Organization.''
In the last sentence, the reference to ``AU sec. 324'' is
replaced with ``AS 2601.''
oo. In the first sentence of paragraph B18, the reference to ``AU
sec. 324.03'' is replaced with ``AS 2601.03.''
pp. In the first sentence of paragraph B19, the reference to ``AU
sec. 324.07'' is replaced with ``AS 2601.07.''
qq. In the first sentence of paragraph B20, the reference to ``AU
sec. 324.12'' is replaced with ``AS 2601.12.''
rr. In the note to paragraph B20a:
In the first sentence, the parenthetic reference to ``AU
sec. 324.24b'' is replaced with ``AS 2601.24b.''
In the second sentence, the parenthetic reference to ``AU
sec. 324.24a'' is replaced with ``AS 2601.24a.''
In the last sentence, the reference to ``AU sec. 324'' is
replaced with ``AS 2601.''
ss. In the note to paragraph B21, the reference to ``AU sec.
324.16'' is replaced with ``AS 2601.16.''
tt. In the last sentence of paragraph B23, the reference to ``AU
sec. 543, Part of Audit Performed by Other Independent Auditors'' is
replaced with ``AS 1205, Part of the Audit Performed by Other
Independent Auditors.''
uu. In Appendix C, paragraph numbers C1 through C17 are replaced
with .C1 through .C17.
vv. In the last sentence of paragraph C2, the reference to
``paragraph 91'' is replaced with ``paragraph .91.''
ww. In paragraph C4, the parenthetic reference to ``paragraph 85''
is replaced with ``paragraph .85.''
xx. In paragraph C5:
In the first bullet, the reference to ``paragraph A7'' is
replaced with ``paragraph .A7.''
In the last sentence of the second bullet, the reference
to ``paragraph 91'' is replaced with ``paragraph .91.''
yy. In the note to paragraph C6, the reference to ``paragraph 89''
is replaced with ``paragraph .89.''
zz. In the second sentence of paragraph C8, the reference to ``AU
sec. 543, Part of Audit Performed by Other Independent Auditors'' is
replaced with ``AS 1205, Part of the Audit Performed by Other
Independent Auditors.''
aaa. In the last sentence of paragraph C9, the reference to ``AU
sec. 543'' is replaced with ``AS 1205.''
bbb. In footnote 1 to paragraph C10, the reference to ``paragraph
B15'' is replaced with ``paragraph .B15.''
ccc. In paragraph C12, the reference to ``paragraph 72'' is
replaced with ``paragraph .72.''
ddd. In paragraph C14:
In the last sentence, the reference to ``AU sec. 317'' is
replaced with ``AS 2405.''
In the first sentence of the note, the reference to
``paragraph C12'' is replaced with ``paragraph .C12.''
eee. In paragraph C15:
In the first sentence, the reference to ``AU sec. 722,
Interim Financial Information'' is replaced with ``AS 4105, Reviews of
Interim Financial Information.''
In the last sentence, the reference to ``AU sec. 722'' is
replaced with ``AS 4105.''
fff. In paragraph C16:
In the first sentence, the reference to ``AU sec. 711,
Filings Under Federal Securities Statutes'' is replaced with ``AS 4101,
Responsibilities Regarding Filings Under Federal Securities Statutes.''
In the second sentence, the reference to ``AU sec. 711''
is replaced with ``AS 4101.''
In the last sentence, the reference to ``AU sec. 711.10''
is replaced with ``AS 4101.10.''
Auditing Standard No. 6, Evaluating Consistency of Financial Statements
Auditing Standard No. 6, Evaluating Consistency of Financial
Statements, as amended, is amended as follows:
a. The section number ``Auditing Standard No. 6'' is replaced with
``AS 2820.''
b. In the references before paragraph 1, the phrase ``Supersedes AU
secs. 420 and 9420'' is deleted.
c. Paragraph numbers 1 through 11 are replaced with .01 through
.11.
d. In paragraph 8:
In the second sentence, the reference to ``paragraph 7''
is replaced with ``paragraph .07.''
Each reference to ``AU sec. 508'' is replaced with ``AS
3101.''
In the last sentence of the note, the reference to ``AU
sec. 508'' is replaced with ``AS 3101.''
e. In paragraph 9, the reference to ``AU sec. 508'' is replaced
with ``AS 3101.''
f. In the last sentence of paragraph 10:
The reference to ``paragraph 31'' is replaced with
``paragraph .31.''
The reference to ``Auditing Standard No. 14'' is replaced
with ``AS 2810.''
The reference to ``AU sec. 508'' is replaced with ``AS
3101.''
g. In paragraph 11:
In the fifth sentence, the reference to ``paragraphs 7 and
8 and AU sec. 508'' is replaced with ``paragraphs .07 and .08 and AS
3101.''
In the last sentence, the reference to ``paragraphs 9 and
10 and AU sec. 508'' is replaced with ``paragraphs .09 and .10 and AS
3101.''
Auditing Standard No. 7, Engagement Quality Review
Auditing Standard No. 7, Engagement Quality Review, as amended, is
amended as follows:
a. The section number ``Auditing Standard No. 7'' is replaced with
``AS 1220.''
b. In the references before paragraph 1, the phrase ``Supersedes
SECPS
[[Page 36606]]
Requirements of Membership Sec. 1000.08(f).'' is deleted.
c. Paragraph numbers 1 through 21 are replaced with .01 through
.21.
d. In paragraph 1, the phrase ``a review interim financial
information'' is replaced with ``a review of interim financial
information.''
e. In the last sentence of footnote 1 to paragraph 2, the reference
to ``AU section (``sec.'') 722, Interim Financial Information'' is
replaced with ``AS 4105, Reviews of Interim Financial Information.''
f. In the last sentence of paragraph 9, the reference to
``paragraphs 10 and 11'' is replaced with ``paragraphs .10 and .11.''
g. In footnote 4 to paragraph 10e, the reference to ``Paragraph 13
of PCAOB Auditing Standard No. 3'' is replaced with ``Paragraph .13 of
AS 1215.''
h. In footnote 5 to paragraph 10g:
The reference to ``AU sec. 550'' is replaced with ``AS
2710.''
The reference to ``AU sec. 711, Filings Under Federal
Securities Statutes'' is replaced with ``AS 4101, Responsibilities
Regarding Filings Under Federal Securities Statutes.''
i. In the first sentence of paragraph 11, the reference to
``paragraph 10'' is replaced with ``paragraph .10.''
j. In footnote 6 to paragraph 12, the reference to ``AU sec. 230''
is replaced with ``AS 1015.''
k. In the last sentence of paragraph 14, the reference to
``paragraphs 15 and 16'' is replaced with ``paragraphs .15 and .16.''
l. In paragraph 15c, the reference to ``paragraphs 10.d and 10.e''
are replaced with ``paragraphs .10d and .10e.''
m. In footnote 8 to paragraph 15e:
The reference to ``AU sec. 722.18f'' is replaced with ``AS
4105.18f.''
The reference to ``AU sec. 711'' is replaced with ``AS
4101.''
n. In paragraph 15f, the reference to ``paragraphs 10.h and 10.i''
are replaced with ``paragraphs .10h and .10i.''
o. In paragraph 16, the reference to ``paragraph 15'' is replaced
with ``paragraph .15.''
p. In paragraph 21, the reference to ``PCAOB Auditing Standard No.
3, Audit Documentation,'' is replaced with ``AS 1215.''
Auditing Standard No. 8, Audit Risk
Auditing Standard No. 8, Audit Risk, is amended as follows:
a. The section number ``Auditing Standard No. 8'' is replaced with
``AS 1101.''
b. Paragraph numbers 1 through 11 are replaced with .01 through
.11.
c. In the first sentence of footnote 1 to paragraph 1, the
reference to ``Auditing Standard No. 5'' is replaced with ``AS 2201.''
d. In paragraph 3:
In footnote 2, the reference to ``Auditing Standard No.
14'' is replaced with ``AS 2810.''
In footnote 3:
The reference to ``AU sec. 110'' is replaced with ``AS
1001.''
The reference to ``AU sec. 230'' is replaced with ``AS
1015.''
e. In paragraph 5:
In the last sentence, the reference to ``Auditing Standard
No. 12'' is replaced with ``AS 2110.''
In footnote 4, the reference to ``Auditing Standard No.
15'' is replaced with ``AS 1105.''
In footnote 5, the reference to ``Paragraph 59 of Auditing
Standard No. 12'' is replaced with ``AS 2110.59.''
f. In paragraph 8:
In footnote 6, the reference to ``Paragraph 59.a. of
Auditing Standard No. 12'' is replaced with ``AS 2110.59a.''
In footnote 7, the reference to ``Paragraphs 32-34 of
Auditing Standard No. 13'' is replaced with ``Paragraphs .32-.34 of AS
2301.''
g. In footnote 8 to paragraph 11, the reference to ``Paragraph 37
of Auditing Standard No. 13'' is replaced with ``AS 2301.37.''
Auditing Standard No. 9, Audit Planning
Auditing Standard No. 9, Audit Planning, as amended, is amended as
follows:
a. The section number ``Auditing Standard No. 9'' is replaced with
``AS 2101.''
b. Paragraph numbers 1 through 19 are replaced with .01 through
.19.
c. In the second sentence of footnote 3 to paragraph 6a, the
reference to ``AU sec. 161, The Relationship of Generally Accepted
Auditing Standards to Quality Control Standards'' is replaced with ``AS
1110, Relationship of Auditing Standards to Quality Control
Standards.''
d. In paragraph 6c, the reference to ``Auditing Standard No. 16''
is replaced with ``AS 1301.''
e. In paragraph 7:
In the second sentence, the reference to ``paragraphs 8-
10'' is replaced with ``paragraphs .08-.10.''
In footnote 5, the reference to ``Auditing Standard No.
11'' is replaced with ``AS 2105.''
f. In the first sentence of footnote 7 to paragraph 9a, the
reference to ``Auditing Standard No. 16, Communications with Audit
Committees'' is replaced with ``AS 1301.''
g. In footnote 8 to paragraph 9b, the reference to ``paragraph 6 of
Auditing Standard No. 10'' is replaced with ``paragraph .06 of AS
1201.''
h. In paragraph 9c:
The reference to ``paragraph 7'' is replaced with
``paragraph .07.''
In footnote 9, the reference to ``Paragraph 6'' is
replaced with ``Paragraph .06.''
i. In footnote 10 to paragraph 9d:
The reference to ``AU sec. 230'' is replaced with ``AS
1015.''
The reference to ``paragraph 16'' is replaced with
``paragraph .16.''
The reference to ``paragraph 5.a.'' is replaced with
``paragraph .05a.''
The reference to ``Auditing Standard No. 13'' is replaced
with ``AS 2301.''
j. In footnote 11 to paragraph 10a, the reference to ``Auditing
Standard No. 12'' is replaced with ``AS 2110.''
k. In footnote 12 to paragraph 10b:
The reference to ``Auditing Standard No. 13'' is replaced
with ``AS 2301.''
The reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
l. In footnote 14 to paragraph 12a, the reference to ``AU sec.
316'' is replaced with ``AS 2401.''
m. In footnote 15 to paragraph 12b, the reference to ``Paragraph 10
of Auditing Standard No. 11'' is replaced with ``AS 2105.10.''
n. In the note to paragraph 12g:
The reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
In footnote 17, the reference to ``Paragraphs B10-B16 of
Auditing Standard No. 5'' is replaced with ``AS 2201.B10-.B16.''
o. In paragraph 13:
In the first sentence:
The reference to ``AU sec. 322, The Auditor's
Consideration of the Internal Audit Function in an Audit of Financial
Statements'' is replaced with ``AS 2605, Consideration of the Internal
Audit Function.''
The reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
In the last sentence:
The reference to ``AU sec. 322'' is replaced with ``AS
2605.''
The reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
p. In paragraph 14:
In the first sentence, the reference to ``AU sec. 543,
Part of Audit Performed by Other Independent Auditors'' is replaced
with ``AS 1205, Part of the Audit Performed by Other Independent
Auditors.''
In the last sentence, the reference to ``paragraphs 11-
13'' is replaced with ``paragraphs .11-.13.''
[[Page 36607]]
In footnote 18, the reference to ``paragraphs C8-C11 of
Auditing Standard No. 5'' is replaced with ``AS 2201.C8-.C11.''
q. In paragraph 18b, the reference to ``AU sec. 315, Communications
Between Predecessor and Successor Auditors'' is replaced with ``AS
2610, Initial Audits--Communications Between Predecessor and Successor
Auditors.''
r. In footnote 19 to paragraph 19, the reference to ``paragraph 3
of Auditing Standard No. 6'' is replaced with ``paragraph .03 of AS
2820.''
s. In Appendix A, paragraph numbers A1 through A2 are replaced with
.A1 through .A2.
Auditing Standard No. 10, Supervision of the Audit Engagement
Auditing Standard No. 10, Supervision of the Audit Engagement, is
amended as follows:
a. The section number ``Auditing Standard No. 10'' is replaced with
``AS 1201.''
b. Paragraph numbers 1 through 6 are replaced with .01 through .06.
c. In paragraph 3:
In the last sentence, the reference to ``Paragraphs 5-6''
is replaced with ``Paragraphs .05-.06.''
In footnote 2, the reference to ``AU sec. 336'' is
replaced with ``AS 1210.''
In footnote 3, the reference to ``AU sec. 543, Part of
Audit Performed by Other Independent Auditors'' is replaced with ``AS
1205, Part of the Audit Performed by Other Independent Auditors.''
In footnote 4, the reference to ``AU sec. 322, The
Auditor's Consideration of the Internal Audit Function in an Audit of
Financial Statements'' is replaced with ``AS 2605, Consideration of the
Internal Audit Function.''
In footnote 5, the reference to ``Paragraphs 16-19 of
Auditing Standard No. 5'' is replaced with ``Paragraphs .16-.19 of AS
2201.''
In footnote 6, the reference to ``AU sec. 230'' is
replaced with ``AS 1015.''
d. In paragraph 5a:
In footnote 7 to paragraph 5a:
The reference to ``AU sec. 230.06'' is replaced with ``AS
1015.06.''
The reference to ``paragraph 5 of Auditing Standard No.
13'' is replaced with ``paragraph .05 of AS 2301.''
In footnote 8 to item (3), the reference to ``Auditing
Standard No. 12'' is replaced with ``AS 2110.''
e. In footnote 9 to paragraph 5b:
The reference to ``paragraph 15 of Auditing Standard No.
9'' is replaced with ``paragraph .15 of AS 2101.''
The reference to ``paragraph 74 of Auditing Standard No.
12'' is replaced with ``AS 2110.74.''
The reference to ``paragraphs 20-23 and 35-36 of Auditing
Standard No. 14'' is replaced with ``paragraphs .20-.23 and .35-.36 of
AS 2810.''
f. In the note to paragraph 5, the reference to ``AU sec. 230'' is
replaced with ``AS 1015.''
g. In footnote 10 to item (3) of paragraph 5c:
The reference to ``Auditing Standard No. 14'' is replaced
with ``AS 2810.''
The reference to ``Auditing Standard No. 3'' is replaced
with ``AS 1215.''
h. In footnote 11 to paragraph 6a, the reference to ``Paragraph 10
of Auditing Standard No. 12'' is replaced with ``AS 2110.10.''
i. In footnote 12 to paragraph 6d:
The reference to ``paragraph 5.a. of Auditing Standard No.
13'' is replaced with ``AS 2301.05a.''
The reference to ``AU sec. 230.06'' is replaced with ``AS
1015.06.''
j. In the note to paragraph 6:
The reference to ``paragraph 5 of Auditing Standard No.
13, The Auditor's Responses to the Risks of Material Misstatement,'' is
replaced with ``AS 2301.05.''
In footnote 13, the reference to ``Paragraph 5.b. of
Auditing Standard No. 13'' is replaced with ``AS 2301.05b.''
k. In Appendix A, paragraph numbers A1 and A2 are replaced with .A1
and .A2.
Auditing Standard No. 11, Consideration of Materiality in Planning and
Performing an Audit
Auditing Standard No. 11, Consideration of Materiality in Planning
and Performing an Audit, is amended as follows:
a. The section number ``Auditing Standard No. 11'' is replaced with
``AS 2105.''
b. Paragraph numbers 1 through 12 are replaced with .01 through
.12.
c. In footnote 1 to paragraph 1, the reference to ``Auditing
Standard No. 14'' is replaced with ``AS 2810.''
d. In paragraph 3:
In the third sentence, the reference to ``Auditing
Standard No. 14'' is replaced with ``AS 2810.''
In footnote 4, the reference to ``Auditing Standard No.
14'' is replaced with ``AS 2810.''
e. In paragraph 4:
The reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
In footnote 5, the reference to ``Paragraph 20 of Auditing
Standard No. 5'' is replaced with ``AS 2201.20.''
f. In paragraph 12:
In the note, the reference to ``Auditing Standard No. 14''
is replaced with ``AS 2810.''
In footnote 6 to the note, the reference to ``Paragraph 17
of Auditing Standard No. 14'' is replaced with ``AS 2810.17.''
Auditing Standard No. 12, Identifying and Assessing Risks of Material
Misstatement
Auditing Standard No. 12, Identifying and Assessing Risks of
Material Misstatement, is amended as follows:
a. The section number ``Auditing Standard No. 12'' is replaced with
``AS 2110.''
b. Paragraph numbers 1 through 74 are replaced with .01 through
.74.
c. In footnote 1 to paragraph 1, the reference to ``Paragraphs 5-8
of Auditing Standard No. 8'' is replaced with ``Paragraphs .05-.08 of
AS 1101.''
d. In paragraph 2:
In the first sentence, the reference to ``Paragraphs 4-
58'' is replaced with ``Paragraphs .04-.58.''
In the last sentence, the reference to ``Paragraphs 59-
73'' is replaced with ``Paragraphs .59-.73.''
e. In paragraph 4:
In footnote 3:
In the first sentence, the reference to ``AU sec. 316'' is
replaced with ``AS 2401.''
In the last sentence, the reference to ``Auditing Standard
No. 18'' is replaced with ``AS 2410.''
In footnote 4, the reference to ``Auditing Standard No.
15'' is replaced with ``AS 1105.''
f. In paragraph 5a, the parenthetic reference to ``paragraphs 7-
17'' is replaced with ``paragraphs .07-.17.''
g. In paragraph 5b, the parenthetic reference to ``paragraphs 18-
40'' is replaced with ``paragraphs .18-.40.''
h. In paragraph 5c, the parenthetic reference to ``paragraphs 41-
45'' is replaced with ``paragraphs .41-.45.''
i. In paragraph 5d, the parenthetic reference to ``paragraphs 46-
48'' is replaced with ``paragraphs .46-.48.''
j. In paragraph 5e, the parenthetic reference to ``paragraphs 49-
53'' is replaced with ``paragraphs .49-.53.''
k. In paragraph 5f:
The parenthetic reference to ``paragraphs 54-58'' is
replaced with ``paragraphs .54-.58.''
In footnote 5 to the note, the reference to ``Paragraph 11
of Auditing Standard No. 15'' is replaced with ``AS 1105.11.''
l. In footnote 7 to paragraph 9, the reference to ``AU sec. 317''
is replaced with ``AS 2405.''
m. In paragraph 11:
The reference to ``paragraph 7'' is replaced with
``paragraph .07.''
[[Page 36608]]
In the third bullet, the reference to ``paragraph 10A'' is
replaced with ``paragraph .10A.''
n. In footnote 7A to the fifth bullet in paragraph 13, the
reference to ``AU secs. 316.66-.67A'' is replaced with ``AS
2401.66-.67A.''
o. In footnote 8 to paragraph 18, the reference to ``Paragraphs 21-
22'' is replaced with ``Paragraphs .21-.22.''
p. In paragraph 19:
In footnote 9, the reference to ``Paragraph 13 of Auditing
Standard No. 5'' is replaced with ``Paragraph .13 of AS 2201.''
In footnote 10 to the note, the reference to ``Paragraph
10 of Auditing Standard No. 15'' is replaced with ``AS 1105.10.''
q. In paragraph 20:
In the last sentence of the first note, the reference to
``paragraphs 37-38'' is replaced with ``paragraphs .37-.38.''
In the last sentence of the second note, the reference to
``paragraphs 37-38'' is replaced with ``paragraphs .37-.38.''
r. In paragraph 22:
In the third sentence, the reference to ``Auditing
Standard No. 5'' is replaced with ``AS 2201.''
In the last sentence, the reference to ``paragraphs 23-
36'' is replaced with ``paragraphs .23-.36.''
In footnote 13, the reference to ``Paragraph 5 of Auditing
Standard No. 5'' is replaced with ``AS 2201.05.''
s. In the note to paragraph 24:
In the first sentence, the reference to ``paragraph 23''
is replaced with ``paragraph .23.''
In the last sentence, the reference to ``Auditing Standard
No. 5'' is replaced with ``AS 2201.''
In footnote 14, the reference to ``Paragraph 25 of
Auditing Standard No. 5'' is replaced with ``AS 2201.25.''
t. In paragraph 25:
The reference to ``paragraphs 65-66'' is replaced with
``paragraphs .65-.66.''
In footnote 15, the reference to ``Paragraph A3 of
Auditing Standard No. 5'' is replaced with ``AS 2201.A3.''
u. In paragraph 32:
The reference to ``paragraph 28.e.'' is replaced with
``paragraph .28e.''
In footnote 17, the reference to ``Paragraphs 12-13'' is
replaced with ``Paragraphs .12-.13.''
v. In paragraph 34:
In the first sentence, the reference to ``paragraph 18''
is replaced with ``paragraph .18.''
In footnote 18, the reference to ``paragraph B5'' is
replaced with ``paragraph .B5.''
w. In footnote 19 to paragraph 35, the reference to ``AU sec. 322,
The Auditor's Consideration of the Internal Audit Function in an Audit
of Financial Statements'' is replaced with ``AS 2605, Consideration of
the Internal Audit Function.''
x. In paragraph 37:
In the first sentence, the reference to ``paragraph 20''
is replaced with ``paragraph .20.''
In the first and last sentences of the note, the
references to ``Auditing Standard No. 5'' are replaced with ``AS
2201.''
In footnote 20 to the note, the reference to ``paragraphs
34-38 of Auditing Standard No. 5'' is replaced with ``AS 2201.34-.38.''
y. In paragraph 39:
In the first sentence, the reference to ``paragraph 18''
is replaced with ``paragraph .18.''
In footnote 21, the reference to ``Paragraphs 16-35 of
Auditing Standard No. 13'' is replaced with ``Paragraphs .16-.35 of AS
2301.''
In footnote 22, the reference to ``Paragraph B1 of
Auditing Standard No. 5'' is replaced with ``AS 2201.B1.''
z. In paragraph 40:
In the first sentence, the reference to ``Auditing
Standard No. 5'' is replaced with ``AS 2201.''
In footnote 23, the reference to ``Paragraph 22 of
Auditing Standard No. 5'' is replaced with ``AS 2201.22.''
In footnote 24, the reference to ``paragraph 24 of
Auditing Standard No. 5'' is replaced with ``AS 2201.24.''
aa. In the last sentence of paragraph 41, the reference to
``paragraph 59'' is replaced with ``paragraph .59.''
bb. In paragraph 42, the reference to ``paragraph 8'' is replaced
with ``paragraph .08.''
cc. In paragraph 44, the reference to ``AU sec. 722, Interim
Financial Information'' is replaced with ``AS 4105, Reviews of Interim
Financial Information.''
dd. In footnote 26 to paragraph 45, the reference to ``Paragraph 7
of Auditing Standard No. 9'' is replaced with ``Paragraph .07 of AS
2101.''
ee. In the last sentence of paragraph 47, the reference to ``AU
sec. 722'' is replaced with ``AS 4105.''
ff. In paragraph 49:
In footnote 28 to the first note to paragraph 49, the
reference to ``Paragraphs 52-53'' is replaced with ``Paragraphs
.52-.53.''
In the second note, the reference to ``paragraph 67'' is
replaced with ``paragraph .67.''
gg. In footnote 29 to paragraph 51, the reference to ``paragraph 29
of Auditing Standard No. 14'' is replaced with ``paragraph .29 of AS
2810.''
hh. In paragraph 53:
In the first bullet, the reference to ``AU sec. 316'' is
replaced with ``AS 2401.''
In footnote 30 to the first bullet, the reference to ``AU
sec. 316.13'' is replaced with ``AS 2401.13.''
In the second bullet, the parenthetic reference to
``Auditing Standard No. 14'' is replaced with ``AS 2810.''
In footnote 31 to the third bullet, the reference to
``Paragraphs 20-23 of Auditing Standard No. 14'' is replaced with ``AS
2810.20-.23.''
ii. In footnote 31A to Item a(8) of paragraph 56, the reference to
``AU secs. 316.66-67A'' is replaced with ``AS 2401.66-.67A.''
jj. In paragraph 59a:
The parenthetic reference to ``paragraphs 4-58'' is
replaced with ``paragraphs .04-.58.''
In the note, the reference to ``paragraphs 65-69'' is
replaced with ``paragraphs .65-.69.''
kk. In footnote 32 to the note to paragraph 59d, the reference to
``Paragraphs 16-35 of Auditing Standard No. 13'' is replaced with ``AS
2301.16-.35.''
ll. In paragraph 59e:
The parenthetic reference to ``paragraphs 60-64'' is
replaced with ``paragraphs .60-.64.''
In footnote 33, the reference to ``Paragraph A10 of
Auditing Standard No. 5'' is replaced with ``AS 2201.A10.''
In footnote 34, the reference to ``Paragraph A9 of
Auditing Standard No. 5'' is replaced with ``AS 2201.A9.''
mm. In paragraph 59f, the parenthetic reference to ``paragraphs 70-
71'' is replaced with ``paragraphs .70-.71.''
nn. In the first sentence of paragraph 60, the reference to
``paragraph 59.e.'' is replaced with ``paragraph .59e.''
oo. In footnote 35 to the note to paragraph 62:
In the second sentence, the reference to ``paragraphs 11,
14, and 25 of Auditing Standard No.14'' is replaced with ``AS 2810.11,
.14, and .25.''
In the last sentence:
The reference to ``paragraph 61 of Auditing Standard No.
5'' is replaced with ``AS 2201.61.''
The reference to ``paragraph 5.c. of Auditing Standard No.
13'' is replaced with ``AS 2301.5c.''
pp. In paragraph 65:
In the fourth sentence, the reference to ``AU sec.
316.85'' is replaced with ``AS 2401.85.''
In the first sentence of the note, the reference to ``AU
sec. 316.85'' is replaced with ``AS 2401.85.''
qq. In paragraph 67, the reference to ``paragraph 65'' is replaced
with ``paragraph .65.''
[[Page 36609]]
rr. In paragraph 71a, the reference to ``paragraph 60'' is replaced
with ``paragraph .60.''
ss. In paragraph 72:
The reference to ``paragraphs 18-40'' is replaced with
``paragraphs .18-.40.''
In footnote 36, the reference to ``Auditing Standard No.
13'' is replaced with ``AS 2301.''
tt. In footnote 37 to paragraph 73:
The phrase ``AU sec. 316.88 and'' is deleted.
The reference to ``paragraph 14 of Auditing Standard No.
5'' is replaced with ``AS 2201.14,'' and ``present'' is replaced with
``presents.''
uu. In paragraph 73A, the reference to ``paragraphs 18-40 and 72-
73'' is replaced with ``paragraphs .18-.40 and .72-.73.''
vv. In footnote 38 to paragraph 74, the reference to ``paragraph 46
of Auditing Standard No. 13'' is replaced with ``AS 2301.46.''
ww. In Appendix A, paragraph numbers A1 through A5 are replaced
with .A1 through .A5.
xx. In Appendix B, paragraph numbers B1 through B6 are replaced
with .B1 through .B6.
yy. In paragraph B1:
In footnote 1, the reference to ``AU sec. 324, Service
Organizations'' is replaced with ``AS 2601, Consideration of an
Entity's Use of a Service Organization.''
In footnote 2, the reference to ``paragraphs 16-17 of
Auditing Standard No. 9'' is replaced with ``paragraphs .16-.17 of AS
2101.''
Auditing Standard No. 13, The Auditor's Responses to the Risks of
Material Misstatement
Auditing Standard No. 13, The Auditor's Responses to the Risks of
Material Misstatement, is amended as follows:
a. The section number ``Auditing Standard No. 13'' is replaced with
``AS 2301.''
b. Paragraph numbers 1 through 47 are replaced with .01 through
.47.
c. In paragraph 3, the reference to ``Auditing Standard No. 12'' is
replaced with ``AS 2110.''
d. In paragraph 4a, the reference to ``paragraphs 5-7'' is replaced
with ``paragraphs .05-.07.''
e. In paragraph 4b, the reference to ``paragraphs 8-46'' is
replaced with ``paragraphs .08-.46.''
f. In footnote 1 to paragraph 5a, the reference to ``AU sec. 230''
is replaced with ``AS 1015.''
g. In paragraph 5b, the parenthetic reference to ``paragraphs 5-6
of Auditing Standard No. 10'' is replaced with ``paragraphs .05-.06 of
AS 1201.''
h. In footnote 2 to item (5) of paragraph 5c, the reference to
``paragraphs 61 and B13 of Auditing Standard No. 5'' is replaced with
``paragraphs .61 and .B13 of AS 2201.''
i. In footnote 3 to paragraph 5d:
In the first sentence, the reference to ``Paragraphs 12-13
of Auditing Standard No. 12'' is replaced with ``AS 2110.12-.13.''
In the last sentence:
The reference to ``AU sec. 316'' is replaced with ``AS
2401.''
The reference to ``AU sec. 411, The Meaning of Present
Fairly in Conformity With Generally Accepted Accounting Principles'' is
replaced with ``AS 2815, The Meaning of `Present Fairly in Conformity
with Generally Accepted Accounting Principles.' ''
j. In footnote 4 to paragraph 7, the reference to ``AU secs.
230.07-.09'' is replaced with ``AS 1015.07-.09.''
k. In footnote 5 to paragraph 7, the reference to ``AU secs.
316.13'' is replaced with ``AS 2401.13.''
l. In paragraph 9c:
In footnote 7 to item (1), the reference to ``paragraph
7.b. of Auditing Standard No. 8'' is replaced with ``paragraph .07b of
AS 1101.''
In the note to item (2), the reference to ``Auditing
Standard No. 5'' is replaced with ``AS 2201.''
m. In paragraph 10:
In the last sentence:
The reference to ``Paragraphs 16-35'' is replaced with
``Paragraphs .16-.35.''
The reference to ``paragraphs 36-46'' is replaced with
``paragraphs .36-.46.''
In the first sentence of the note, the reference to
``Paragraphs 16-17'' is replaced with ``Paragraphs .16-.17.''
n. In paragraph 11:
In the note, the reference to ``Auditing Standard No. 12''
is replaced with ``AS 2110.''
In footnote 10 to the note, the reference to ``paragraph
71 of Auditing Standard No. 12'' is replaced with ``AS 2110.71.''
o. In paragraph 11A:
In the first sentence, the reference to ``Paragraph 71.g.
of Auditing Standard No. 12'' is replaced with ``AS 2110.71g.''
In the second sentence, the reference to ``AU sec.
316.66-.67A'' is replaced with ``AS 2401.66-.67A.''
In the last sentence, the reference to ``AU sec.
316.66-.67A'' is replaced with ``AS 2401.66-.67A.''
p. In paragraph 12:
In the second note, the reference to ``Auditing Standard
No. 5'' is replaced with ``AS 2201.''
In footnote 11 to the second note, the reference to
``Paragraphs 14-15 of Auditing Standard No. 5'' is replaced with ``AS
2201.14-.15.''
q. In the last sentence of paragraph 13, the reference to
``paragraphs 16-17'' is replaced with ``paragraphs .16-.17.''
r. In the note to paragraph 14, the reference to ``AU secs.
316.54-.67'' is replaced with ``AS 2401.54-.67.''
s. In paragraph 15, the reference to ``AU sec. 316'' is replaced
with ``AS 2401.''
t. In paragraph 15a, the parenthetic reference to ``AU secs.
316.58-.62'' is replaced with ``AS 2401.58-.62.''
u. In paragraph 15b, the parenthetic reference to ``AU secs.
316.63-.65'' is replaced with ``AS 2401.63-.65.''
v. In paragraph 15c, the parenthetic reference to ``AU secs.
316.66-.67A'' is replaced with ``AS 2401.66-.67A.''
w. In footnote 14 to paragraph 17:
The reference to ``Paragraph 10 of Auditing Standard No.
15'' is replaced with ``Paragraph .10 of AS 1105.''
The reference to ``AU sec. 329'' is replaced with ``AS
2305.''
x. In footnote 15 to paragraph 20, the reference to ``Paragraphs
37-38 of Auditing Standard No. 12'' is replaced with ``AS
2110.37-.38.''
y. In the note to paragraph 27, the reference to ``AU sec. 350'' is
replaced with ``AS 2315.''
z. In the last sentence of paragraph 28, the reference to
``Paragraph 16'' is replaced with ``Paragraph .16.''
aa. In the last sentence of footnote 16 to the ninth bullet of
paragraph 31, the reference to ``paragraph B28 of Auditing Standard No.
5'' is replaced with ``AS 2201.B28.''
bb. In the note to paragraph 34:
In the first sentence, the reference to ``Auditing
Standard No. 5'' is replaced with ``AS 2201.''
In the last sentence, the reference to ``AU sec. 325'' is
replaced with ``AS 1305.''
cc. In paragraph 35:
Each reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
In footnote 17, the reference to ``Paragraph B1 of
Auditing Standard No. 5'' is replaced with ``AS 2201.B1.''
dd. In paragraph 38:
In footnote 18, the reference to ``Paragraph A5 of
Auditing Standard No. 5'' is replaced with ``AS 2201.A5.''
In footnote 19, the reference to ``AU sec. 328'' is
replaced with ``AS 2502.''
ee. In the note to paragraph 39, the reference to ``Auditing
Standard No. 15'' is replaced with ``AS 1105.''
ff. In paragraph 40, the reference to ``paragraph 9.b.'' is
replaced with ``paragraph .09b.''
gg. In the note to paragraph 41b, the reference to ``AU secs.
316.58-.62'' is replaced with ``AS 2401.58-.62.''
[[Page 36610]]
hh. In item (1) of paragraph 44a, the reference to ``paragraphs 32-
34'' is replaced with ``paragraphs .32-.34.''
ii. In footnote 20 to paragraph 47, the reference to ``Paragraph
.44 of AU sec. 350'' is replaced with ``AS 2315.44.''
jj. In Appendix A, paragraph numbers A1 through A3 are replaced
with .A1 through .A3.
Auditing Standard No. 14, Evaluating Audit Results
Auditing Standard No. 14, Evaluating Audit Results, is amended as
follows:
a. The section number ``Auditing Standard No. 14'' is replaced with
``AS 2810.''
b. Paragraph numbers 1 through 37 are replaced with .01 through
.37.
c. In footnote 3 to paragraph 6b:
The reference to ``Paragraphs 46-48 of Auditing Standard
No. 12'' is replaced with ``Paragraphs .46-.48 of AS 2110.''
The reference to ``AU sec. 329'' is replaced with ``AS
2305.''
d. In the note to paragraph 6, the reference to ``paragraph 36'' is
replaced with ``paragraph .36.''
e. In footnote 4 to paragraph 7, the reference to ``Paragraph 47 of
Auditing Standard No. 12'' is replaced with ``AS 2110.47.''
f. In the first sentence of paragraph 9, the reference to
``paragraph 6.b.'' is replaced with ``paragraph .06b.''
g. In the second sentence of the note to paragraph 10, the
reference to ``Auditing Standard No. 11'' is replaced with ``AS 2105.''
h. In paragraph 12:
In the last sentence:
The reference to ``paragraph 13'' is replaced with
``paragraph .13.''
The reference to ``AU sec. 350'' is replaced with ``AS
2315.''
In footnote 5, the reference to ``AU sec. 350.26'' is
replaced with ``AS 2315.26.''
i. In the last sentence of the note to paragraph 13, the reference
to ``Paragraph 27'' is replaced with ``Paragraph .27.''
j. In footnote 6 to paragraph 14b, the reference to ``Auditing
Standard No. 11'' is replaced with ``AS 2105.''
k. In paragraph 17:
In footnote 7:
In the first sentence, the reference to ``AU sec. 508'' is
replaced with ``AS 3101.''
In the last sentence, the reference to ``AU sec. 508.35''
is replaced with ``AS 3101.35.''
In footnote 11 to the second note, the reference to ``AU
sec. 317'' is replaced with ``AS 2405.''
In the third note, the reference to ``Auditing Standard
No. 11'' is replaced with ``AS 2105.''
In footnote 12 to the third note, the reference to
``Paragraphs 11-12 of Auditing Standard No. 11'' is replaced with ``AS
2105.11-.12.''
l. In paragraph 18, the reference to ``paragraph 17'' is replaced
with ``paragraph .17.''
m. In the last sentence of paragraph 19, the reference to
``paragraph 36'' is replaced with ``paragraph .36.''
n. In the last sentence of paragraph 20, the reference to ``AU sec.
316'' is replaced with ``AS 2401.''
o. In footnote 14 to paragraph 20, the reference to ``AU sec.
316.05'' is replaced with ``AS 2401.05.''
p. In paragraph 23, the reference to ``AU secs. 316.79-.82A, AU
sec. 317'' is replaced with ``AS 2401.79-.82A, AS 2405.''
q. In the note to paragraph 25a, the reference to ``paragraph 15''
is replaced with ``paragraph .15.''
r. In footnote 15 to paragraph 25c, the reference to ``Paragraph
5.d. of Auditing Standard No. 13'' is replaced with ``Paragraph .05d of
AS 2301.''
s. In footnote 16 to paragraph 25d, the reference to ``Paragraph
27'' is replaced with ``Paragraph .27.''
t. In the note to paragraph 27, the reference to ``AU secs.
316.64-.65'' is replaced with ``AS 2401.64-.65.''
u. In footnote 17 to paragraph 28:
The first parenthetic reference to ``paragraph 9'' is
replaced with ``paragraph .09.''
The second parenthetic reference to ``paragraphs 20-23''
is replaced with ``paragraphs .20-.23.''
The third parenthetic reference to ``paragraphs 24-27'' is
replaced with ``paragraphs .24-.27.''
v. In the note to paragraph 29, the parenthetic reference to
``paragraphs 49-51 of Auditing Standard No. 12'' is replaced with ``AS
2110.49-.51.''
w. In the first note to paragraph 30:
In the first sentence, the reference to ``AU sec. 411, The
Meaning of Present Fairly in Conformity With Generally Accepted
Accounting Principles'' is replaced with ``AS 2815, The Meaning of
'Present Fairly in Conformity with Generally Accepted Accounting
Principles.' ''
In the last sentence, the reference to ``Auditing Standard
No. 6'' is replaced with ``AS 2820.''
x. In paragraph 31:
In the note, the reference to ``AU sec. 508'' is replaced
with ``AS 3101.''
In footnote 18 to the note, the reference to ``AU secs.
508.41-.44'' is replaced with ``AS 3101.41-.44.''
y. In paragraph 32:
The reference to ``Auditing Standard No. 8'' is replaced
with ``AS 1101.''
In footnote 19, the reference to ``Paragraph 3 of Auditing
Standard No. 8'' is replaced with ``AS 1101.03.''
z. In paragraph 34a, the parenthetic reference to ``paragraphs 14
and 17-19'' is replaced with ``paragraphs .14 and .17-.19.''
aa. In paragraph 34b, the parenthetic reference to ``paragraphs 20-
23 and 28-29'' is replaced with ``paragraphs .20-.23 and .28-.29.''
bb. In paragraph 34c, the parenthetic reference to ``paragraph 36''
is replaced with ``paragraph .36.''
cc. In footnote 20 to paragraph 34e, the reference to ``Paragraphs
7-9 of Auditing Standard No. 15'' is replaced with ``Paragraphs .07-.09
of AS 1105.''
dd. In paragraph 35:
In the last sentence, the reference to ``AU sec. 508'' is
replaced with ``AS 3101.''
In footnote 21, the reference to ``AU sec 508.22-.34'' is
replaced with ``AS 3101.22-.34.''
ee. In the note to paragraph 36:
In the first sentence, the reference to ``Auditing
Standard No. 12'' is replaced with ``AS 2110.''
In footnote 22, the reference to ``Paragraph 74 of
Auditing Standard No.12'' is replaced with ``AS 2110.74.''
In the last sentence, the reference to ``Auditing Standard
No. 13'' is replaced with ``AS 2301.''
In footnote 23, the reference to ``Paragraphs 32-34 of
Auditing Standard No. 13'' is replaced with ``AS 2301.32-.34.''
ff. In paragraph 37:
Each reference to ``Auditing Standard No. 5'' is replaced
with ``AS 2201.''
In footnote 24:
The reference to ``Paragraphs 62-70 of Auditing Standard
No. 5'' is replaced with ``AS 2201.62-.70.''
The reference to ``paragraphs 71-73 of Auditing Standard
No. 5'' is replaced with ``AS 2201.71-.73.''
gg. In Appendix A, paragraph numbers A1 through A3 are replaced
with .A1 through .A3.
hh. In footnote 2 to paragraph A2, the reference to ``AU sec. 316''
is replaced with ``AS 2401.''
ii. In footnote 3 to paragraph A3, the reference to ``Paragraph
10'' is replaced with ``Paragraph .10.''
jj. In Appendix B, paragraph numbers B1 through B2 are replaced
with .B1 through .B2.
kk. In paragraph B1:
