Page 458 - Auditing Standards

As of December 15, 2017
them more complete and transparent.

(6) Management's unwillingness to appropriately address significant deficiencies in internal
control on a timely basis.

d. Other matters, including:

(1) Objections by management to the auditor meeting privately with the audit committee.

(2) Accounting policies that appear inconsistent with industry practices that are widely
recognized and prevalent.

(3) Frequent changes in accounting estimates that do not appear to result from changing
circumstances.

(4) Tolerance of violations of the company's code of conduct.

Footnotes (AS 2810 - Evaluating Audit Results):

1 For purposes of this standard, the term "audit of financial statements" refers to the financial statement

portion of the integrated audit and to the audit of financial statements only.

2 Terms defined in Appendix A, Definitions, are set in boldface type the first time they appear.

3 Paragraphs .46-.48 of AS 2110, Identifying and Assessing Risks of Material Misstatement, and paragraph

.03 of AS 2305, Substantive Analytical Procedures.

4 AS 2110.47 contains a requirement to perform analytical procedures relating to revenue as part of the risk
assessment procedures.

5 AS 2315.26.

6 AS 2105.

7 If the financial statements contain material misstatements, AS 3105, Departures from Unqualified Opinions

and Other Reporting Circumstances, indicates that the auditor should issue a qualified or an adverse opinion on
the financial statements. AS 3105.18 discusses situations in which the financial statements are materially
affected by a departure from the applicable financial reporting framework.

8 TSC Industries v. Northway, Inc., 426 U.S. 438, 449 (1976). See also Basic, Inc. v. Levinson, 485 U.S.
224 (1988).

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