Page 717 - Auditing Standards

As of December 15, 2017
and updated that understanding as it specifically relates to changes in internal control over financial

reporting associated with the material weakness;

Note: This report element should be modified in cases in which a successor auditor's
performance of this engagement is occurring before he or she has opined on the effectiveness

of internal control over financial reporting overall in accordance with AS 2201. In this
circumstance, the auditor's report should include a statement that the engagement includes
obtaining an understanding of internal control over financial reporting, examining evidence

supporting management's assertion, and performing such other procedures as the auditor
considered necessary in the circumstances.

m. A statement that the auditor believes the auditing procedures provide a reasonable basis for his or
her opinion;

n. The auditor's opinion on whether the identified material weakness exists (or no longer exists) as of
the date of management's assertion;

o. A paragraph that includes the following statements:

That the auditor was not engaged to and did not conduct an audit of internal control over
financial reporting as of the date of management's assertion, the objective of which would be

the expression of an opinion on the effectiveness of internal control over financial reporting, and
that the auditor does not express such an opinion, and

That the auditor has not applied auditing procedures sufficient to reach conclusions about the

effectiveness of any controls of the company as of any date after the date of management's
annual assessment of the company's internal control over financial reporting, other than the
controls specifically identified in the auditor's report, and that the auditor does not express an

opinion that any other controls operated effectively after the date of management's annual
assessment of the company's internal control over financial reporting.

Note: This report element statement should be modified in the case in which a successor

auditor's performance of this engagement is occurring before he or she has opined on the
effectiveness of internal control over financial reporting overall in accordance with AS

2201 to read as follows: That the auditor has not applied auditing procedures sufficient to
reach conclusions about the effectiveness of any controls of the company other than the
controls specifically identified in the auditor's report and that the auditor does not express
an opinion that any other controls operated effectively.

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