Audit and Accounting Guide Depository and Lending Institutions, 2nd Edition

Chapter 5 Audit Considerations and Certain Financial Reporting Matters¹

Gray shaded text in this chapter reflects guidance issued but not yet effective as of the date of this guide, July 1, 2017, but becoming effective on or prior to December 31, 2017, exclusive of any option to early adopt ahead of the mandatory effective date. Unless otherwise indicated, all unshaded text reflects guidance that was already effective as of the date of this guide.

Overview

5.01 AU-C section 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance With Generally Accepted Auditing Standards (AICPA, Professional Standards), addresses the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with generally accepted auditing standards (GAAS). Specifically, it sets out the overall objectives of the independent auditor (the auditor) and explains the nature and scope of an audit designed to enable the auditor to meet those objectives. It also explains the scope, authority, and structure of GAAS and includes requirements establishing the general responsibilities of the auditor applicable in all audits, including the obligation to comply with GAAS.

5.02 Paragraph .12 of AU-C section 200 states that the overall objectives of the auditor, in conducting an audit of financial statements, are to

1. a.  obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, ...