Department of the Treasury's Advisory Committee on the Auditing Profession (ACAP) recommended that the PCAOB undertake a standard-setting initiative to consider improvements to the standard auditor report
By far, the most common auditor report
subject to SAS 125 is listed third in the above list--the "by product" report is usually not even called a report-namely the "management letter" The primary objective of an audit of financial statements is to determine if they are stated in accordance with GAAP.
announced today that it has received a SAS-70 Type 2 Service Auditor Report
from a major Accounting Firm indicating that certain defined and agreed upon internal controls have been tested and appear to be operating as described by management.
A 2002 state auditor report
recommended reforms to the red light camera program to eliminate perceived conflicts of interest and restore public trust in the program.
Lastly, the Act has a provision not covered by SAS 90, which requires that the auditor report
to the audit committee "other material written communications" between the auditor and the client.
Statement on Auditing Standards (SAS) 82, Consideration of Fraud in a Financial Statement Audit, requires that the independent auditor report
directly to the audit committee any fraud involving senior management and fraud (whether caused by senior management or other employees) that causes a material misstatement of the financial statements.
Based on a 2002 State Auditor report
that recommended tighter control over red light camera programs, AB 1022 has been created to restore public trust by ensuring that the programs focus on safety and stipulate that oversight of the programs cannot be delegated to vendors that provide the red light camera service.
12 When the auditor reports
on compliance in a separate report, the report should include the following:
The ABA's comment letter called for a revised definition of materiality for purposes of the internal control assessment, and for the SEC to encourage the PCAOB to eliminate one of the two overlapping auditor reports
on internal control that are required under AS2.
When the auditor reports
on an incomplete presentation but one that is otherwise in accordance with generally accepted accounting principles (GAAP), the auditor should include an emphasis-of-matter paragraphs in the auditor's report that
In its June 1993 report, "Meeting the Financial Reporting Needs of the Future: A Public Commitment from the Public Accounting Profession," the AICPA board of directors urged the Securities and Exchange Commission (SEC) to require the inclusion of management and auditor reports
on internal controls over financial reporting in the annual reports of all public companies.
See the AICPA Audit and Accounting Guide State and Local Governments for illustrative auditor reports