Statement on Auditing Standards-Forming an Opinion and Reporting on Financial Statements

Journal of Accountancy, April 2011 | Go to article overview

Statement on Auditing Standards-Forming an Opinion and Reporting on Financial Statements


Statement on Auditing Standards (SAS) Forming an Opinion and Reporting on Financial Statements supersedes SAS No. 1, Codification of Auditing Standards and Procedures, section 410, Adherence to Generally Accepted Accounting Principles (AICPA, Professional Standards, vol. 1, AU sec. 410); SAS No. 1 section 530 paragraphs .01-.02, Dating of the Independent Auditor's Report (AICPA, Professional Standards, vol. 1, AU sec. 530, par. .01-.02); and with the clarified SAS Modifications to the Opinion in the Independent Auditor's Report and the clarified SAS Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report, paragraphs .01-.11, .14-. 15, .19-. 32, .35-. 52, .58-.70, and .74-. 76 of SAS No. 58, Reports on Audited Financial Statements (AICPA, Professional Standards, vol. 1, AU sec. 508, par. .01-. 11, .14-. 15, .19-. 32, .35-. 52, .58-.70, and .74-.76).

CONTENTS

Introduction
Scope of This Statement on Auditing
   Standards/1-8
Effective Date/9
Objectives/10
Definitions/11-13
Requirements
Forming an Opinion on the Financial
  Statements/14-19
Form of Opinion/20-22
Auditor's Report/23-44
Comparative Financial Statements and
  Comparative Information/45-58
Information Presented in the Financial
  Statements/59
Application and Other Explanatory Material
Scope of This SAS/A1
Objectives/A2
Definitions/A3
Forming an Opinion on the Financial
  Statements/A4-A13
Form of Opinion/A14-A15
Auditor's Report/A16-A42
Comparative Financial Statements and
  Comparative Information/A43-A55
Information Presented in the Financial
  Statements/A56-A57
Exhibit A: Illustrations of Auditors' Reports
  on Financial Statements/A58
Exhibit B: Comparison of Statement on
  Auditing Standards Forming an Opinion
  and Reporting on Financial Statements With
  International Standard on Auditing 700,
  Forming an Opinion and Reporting on
  Financial Statements/A59
Exhibit C: Comparison of Statement on
  Auditing Standards Forming an Opinion
  and Reporting on Financial Statements With
  International Standard on Auditing 710,
  Comparative Information--Corresponding
  Figures and Comparative Financial
  Statements/A60

INTRODUCTION

Scope of This Statement on Auditing Standards

1. This Statement on Auditing Standards (SAS) addresses the auditor's responsibility to form an opinion on the financial statements. It also addresses the form and content of the auditor's report issued as a result of an audit of financial statements.

2. This SAS is written in the context of a complete set of general purpose financial statements.

3. The clarified SAS Modifications to the Opinion in the Independent Auditor's Report and the clarified SAS Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report address how the form and content of the auditor's report are affected when the auditor expresses a modified opinion (a qualified opinion, an adverse opinion, or a disclaimer of opinion) or includes an emphasis-of-matter paragraph or other-matter(s) paragraph in the auditor's report.

4. The clarified SAS Special Considerations Audits of Financial Statements Prepared in Accordance With Special Purpose Frameworks addresses special considerations when financial statements are prepared in accordance with a special purpose framework. (1) The clarified SAS Special Considerations--Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement addresses special considerations relevant to an audit of a single financial statement or of a specific element, account, or item of a financial statement. (Ref: par. Al).

5. The clarified SAS Opening Balances--Initial Audit Engagements, Including Reaudit Engagements applies when the financial statements of the prior period have been audited by a predecessor auditor or were not audited.

6. The proposed SAS Reporting on Financial Statements Prepared in Accordance With a Financial Reporting Framework Generally Accepted in Another Country applies when an auditor practicing in the United States is engaged to report on financial statements that have been prepared in accordance with a financial reporting framework generally accepted in another country not adopted by a body designated by the Council of the AICPA (Council) to establish generally accepted accounting principles that are intended to be used ouside the United States. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Statement on Auditing Standards-Forming an Opinion and Reporting on Financial Statements
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.