Statement on Auditing Standards - Special Considerations - Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement

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Note: All clarified Statements on Auditing Standards (SASs) will have the same effective date. Upon the issuance of all clarified SASs, one SAS will be issued containing all clarified SASs in codified format.

Statement on Auditing Standards (SAS) Special Considerations--Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement supersedes paragraphs .33-.34 of SAS No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards, vol. 1, AU sec. 508 par. .33-.34) and paragraphs .11-.18 of SAS No. 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 623 par. .11-.18).

CONTENTS

Introduction

Scope of This Statement on Auditing Standards/1-3

Effective Date/4

Objective/5

Definitions/6-7

Requirements

Considerations When Accepting the Engagement/8-11

Considerations When Planning and Performing the Audit/12-14

Forming on Opinion and Reporting Considerations/15-24

Application and Other Explanatory Material Scope of This SAS/A1-A3

Definitions/A4

Considerations When Accepting the Engagement/A5-A11

Considerations When Planning and Performing the Audit/A12-A16

Forming an Opinion and Reporting Considerations/A17-A24

Exhibit A: Examples of Specific Elements, Accounts, or Items of a Financial Statement/A25

Exhibit B: Illustrations of Auditor's Reports on a Single Financial Statement and a Specific Element of a Financial Statement/A26

Exhibit C: Comparison of Statement on Auditing Standards Special Considerations--Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement With International Standard on Auditing 805, Special Considerations--Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement/A27

INTRODUCTION

Scope of This Statement on Auditing Standards

1. AU sections 100-500 apply to on audit of financial statements and are to be adapted as necessary in the circumstances when applied to audits of other historical financial information. This Statement on Auditing Standards (SAS) addresses special considerations in the application of those AU sections to an audit of a single financial statement or of a specific element, account, or item of a financial statement. The single financial statement or the specific element, account, or item of a financial statement may be prepared in accordance with a general or special purpose framework. If prepared in accordance with a special purpose framework, the proposed SAS Special Considerations--Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks also applies to the audit. (Ref: par. Al-A3)

2. This SAS does not apply to the report of a component auditor issued as a result of work performed on the financial information of a component at the request of a group engagement team for purposes of an audit of group financial statements (see the proposed SAS Audits of Group Financial Statements (Including the Work of Component Auditors)).

3. This SAS does not override the requirements of the other AU sections nor does it purport to deal with all special considerations that may be relevant in the circumstances of the engagement.

Effective Date

4. This SAS is effective for audits of single financial statements or specific elements, accounts, or items of a financial statement as of or for periods ending on or after December 15, 2012.

OBJECTIVE

5. The objective of the auditor, when applying generally accepted auditing standards (GAAS) in an audit of a single financial statement or of a specific element, account, or item of a financial statement, is to address appropriately the special considerations that are relevant to

a. the acceptance of the engagement;

b. …