Page 462 - Auditing Standards

As of December 15, 2017
that is, limits that are reasonable and practicable to attain in financial statements. 1

[.05] [Paragraph deleted.]

.06 Generally accepted accounting principles recognize the importance of reporting transactions and
events in accordance with their substance. The auditor should consider whether the substance of transactions
or events differs materially from their form.

[.07] [Paragraph deleted.]

.08 The auditor should be aware that the accounting requirements adopted by regulatory agencies for

reports filed with them may differ from generally accepted accounting principles in certain respects. Paragraph
.04 of AS 3310, Special Reports on Regulated Companies, and AS 3305, Special Reports, provide guidance
if the auditor is reporting on financial statements prepared in conformity with a comprehensive basis of

accounting other than generally accepted accounting principles.

[.09-.18] [Paragraphs deleted.]

Footnote (AS 2815 - The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting
Principles"):

1 The concept of materiality is inherent in the auditor's judgments. That concept involves qualitative as well
as quantitative judgments (see AS 2105, Consideration of Materiality in Planning and Performing an Audit, and
AS 3105.19).

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