Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

AU 410: Adherence to GAAP

AU-C 700: Forming an Opinion and Reporting on Financial Statements

EFFECTIVE DATE AND APPLICABILITY

Original Pronouncements	Section 410: Statements on Auditing Standards (SASs) 1 and 62.
Effective Date	These statements currently are effective.
Applicability	Audits of generally accepted accounting principles (GAAP) financial statements in accordance with generally accepted auditing standards (GAAS).

EFFECTIVE DATE AND SUMMARY OF CHANGES

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.

AU-C Sections 700, 705, and 706 include auditor report changes and include close integration with AU-C Sections 210, Terms of Engagement, and 580.

AU-C Sections 700, 705, and 706 supersede:

• AU Section 410,
• AU Section 530, Dating of the Independent Auditor’s Report, (as amended) paragraphs .01–.02,
• AU Section 508, Reports on Audited Financial Statements, supersedes paragraphs .01–.11, .14–.15, .19–.32, .35–.52, .58–.70, and .74–.76

Paragraph .08 of AU Section 508 requires a statement in the auditor’s report that the financial statements are the responsibility of the company’s management. Paragraph 25 of the clarified SAS proposes a requirement to describe management’s responsibility for the preparation and fair presentation of the financial statements in more detail than what was required in AU Section 508. The description includes an explanation that ...