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As of December 15, 2017
compliance with the internal control reporting provisions of the Act. See Advisory Committee on Smaller Public
Companies to the United States Securities and Exchange Commission, Final Report, at p. 5 (April 23, 2006).
10 See AS 2110, Identifying and Assessing Risks of Material Misstatement, regarding identifying risks that
may result in material misstatement due to fraud.
10A See paragraphs .66-.67A of AS 2401, Consideration of Fraud in a Financial Statement Audit.
11 See AS 2105, Consideration of Materiality in Planning and Performing an Audit, which provides additional
explanation of materiality.
12 See AS 1105, Audit Evidence, which provides additional information on financial statement assertions.
13 This is because his or her assessment of the risk that undetected misstatement would cause the financial
statements to be materially misstated is unacceptably high (see paragraph .14 of AS 2810, Evaluating Audit
Results, for further discussion about undetected misstatement) or as a means of introducing unpredictability in
the procedures performed (see paragraph .61 and paragraph .05 of AS 2301, The Auditor's Responses to the
Risks of Material Misstatement, for further discussion about predictability of auditing procedures).
14 For the purpose of this indicator, the term "senior management" includes the principal executive and
financial officers signing the company's certifications as required under Section 302 of the Act as well as any
other members of senior management who play a significant role in the company's financial reporting process.
15 See Financial Accounting Standards Board Statement No. 154, Accounting Changes and Error
Corrections, regarding the correction of a misstatement.
16 See Item 308(a) of Regulations S-B and S-K, 17 C.F.R. §§ 228.308(a) and 229.308(a).
17 See 15 U.S.C. § 78j-1.
18 See Appendix C, which provides direction on modifications to the auditor's report that are required in
certain circumstances.
18A See Regulation S-X Rule 2-02(a).
19 See paragraph .C3 for direction when the scope of the engagement has been limited.
Footnotes (Appendix A - Definitions):
1 See Securities Exchange Act Rules 13a-15(f) and 15d-15(f), 17 C.F.R. §§ 240.13a-15(f) and 240.15d-15(f).
2 See 17 C.F.R. §§ 228.308(a)(3) and 229.308(a)(3).
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