Page 685 - Auditing Standards
P. 685
As of December 15, 2017
12 See footnote 10 of the Appendix.
13 See paragraph .55.
* Assumes no exercise of the Underwriters' overallotment option. See "Underwriting".
14 See footnote 3 of the Appendix.
15 See footnote 3 of the Appendix.
16 See footnote 5 of the Appendix.
17 See footnote 4 of the Appendix.
18 See footnote 3 of paragraph .03.
19 This same example could be used in conjunction with a municipal bond offering in which the accountant
has not received the representation letter described in paragraphs .06 and .07.
20 This example may also be used in connection with a filing under the Securities Act of 1933 (the Act) when
a party other than a named underwriter (for example, a selling shareholder) has not provided the accountant
with the representation letter described in paragraphs .06 and .07. In such a situation, this example may be
modified to include the accountant's comments on independence and compliance as to form of the audited
financial statements and financial statement schedules with the applicable accounting requirements of the Act
and the related rules and regulations adopted by the SEC. Example paragraph 1a(ii) may include an inquiry,
and the response of company officials, on compliance as to form of the unaudited condensed interim financial
statements.
21 See paragraphs .31 and .32 for guidance in commenting on independence.
22 See footnote 3 of the Appendix.
23 See footnotes 4 and 5 of the Appendix.
24 Generally, accountants should recognize that the criteria for summarized financial information have not
been established for entities other than SEC registrants.
25 In some cases it may be considered desirable to combine in one paragraph the substance of paragraphs 2
and 4. This may be done by expanding the identification of terms in paragraph 4 to provide the identification
information contained in paragraph 2. In such cases the introductory sentences in paragraphs 2 and 4 and the
text of paragraph 3 might be combined as follows: "At your request, we have also read the following information
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