Page 97 - Auditing Standards
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As of December 15, 2017
[4] [Footnote deleted.]
5 AS 2105, Consideration of Materiality in Planning and Performing an Audit.
6 If no audit committee exists, all references to the audit committee in this standard apply to the entire board
of directors of the company. See 15 U.S.C. §§ 78c(a)58 and 7201(a)(3).
7 See, e.g., AS 1301. Also, various laws or regulations require other matters to be communicated. (See,
e.g., Rule 2-07 of Regulation S-X, 17 CFR 210.2-07; and Rule 10A-3 under the Securities Exchange Act of
1934, 17 CFR 240.10A-3.) The requirements of this standard do not modify communications required by those
other laws or regulations.
8 See, e.g., paragraph .06 of AS 1201, Supervision of the Audit Engagement.
9 Paragraph .06 of this standard.
10 See, e.g., paragraph .06 of AS 1015, Due Professional Care in the Performance of Work, paragraph .16
of this standard, and paragraph .05a. of AS 2301, The Auditor's Responses to the Risks of Material
Misstatement.
11 AS 2110, Identifying and Assessing Risks of Material Misstatement.
12 AS 2301 and AS 2201, An Audit of Internal Control Over Financial Reporting That Is Integrated with An
Audit of Financial Statements.
13 The term "business units" includes subsidiaries, divisions, branches, components, or investments.
14 Paragraph .66 of AS 2401, Consideration of Fraud in a Financial Statement Audit.
15 AS 2105.10 describes the consideration of materiality in planning and performing audit procedures at an
individual location or business unit.
16 There is a reasonable possibility of an event, as used in this standard, when the likelihood of the event is
either "reasonably possible" or "probable," as those terms are used in the FASB Accounting Standards
Codification, Contingencies Topic, paragraph 450-20-25-1.
17 AS 2201.B10-.B16.
18 For integrated audits, see also AS 2201.C8-.C11.
19 See also paragraph .03 of AS 2820, Evaluating Consistency of Financial Statements.
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