Page 487 - Auditing Standards
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As of December 15, 2017
schedules be audited if the company's financial statements are audited. See, e.g., Regulation S-X Rules 5-04,
6-10, 6A-05, and 7-05, 17 CFR 210.5-04, 210.6-10, 210.6A-05, 210.7-05. See generally, Regulation S-X Rule
12-01, 17 CFR 210.12-01, et seq., which address the form and content of certain SEC-required schedules.
16 The terms used in the Opinion on the Financial Statements section, such as financial position, results of
operations and cash flows, should be modified, as appropriate, depending on the type of company and financial
statements being audited.
17 See Regulation S-X Rule 2-02(a), 17 CFR 210.2-02(a).
18 For an investment company that is part of a group of investment companies, the statement contains the
year the auditor began serving consecutively as the auditor of any investment company in the group of
investment companies. See Section 12(d)(1)(G)(ii) of the Investment Company Act.
19 See Regulation S-X Rule 2-02(a).
20 See AS 3110, Dating of the Independent Auditor's Report.
21 Critical audit matters are not a substitute for required explanatory language (paragraphs) described in
paragraph .18. If a matter that meets the definition of a critical audit matter also requires an explanatory
paragraph, such as a matter related to going concern, the auditor may include the information required under
paragraph .14 in the explanatory paragraph with a cross-reference in the critical audit matters section of the
auditor's report to the explanatory paragraph. Alternatively, the auditor may include the explanatory paragraph
and critical audit matter communication separately in the auditor's report and add a cross-reference between the
two sections.
22 Consistent with the requirements of AS 1215, Audit Documentation, the audit documentation should be in
sufficient detail to enable an experienced auditor, having no previous connection with the engagement, to
understand the determinations made to comply with the provisions of this standard.
23 See AS 2415, Consideration of an Entity's Ability to Continue as a Going Concern.
24 See paragraphs .06–.09 of AS 1205, Part of the Audit Performed by Other Independent Auditors.
25 See paragraphs .08 and .12–.15 of AS 2820, Evaluating Consistency of Financial Statements.
26 See AS 2820.06.
27 See AS 2820.09 and .16–.17.
28 See AS 2201.88. AS 2201 provides additional circumstances in which the auditor includes an explanatory
paragraph. If the combined report is issued, AS 2201 notes that the auditor should consider those circumstances
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