AU 532: Restricting the Use of an Auditor’s Report

AU-C 905: Alert That Restricts the Use of the Auditor’s Written Communication


Original Pronouncement Statement on Auditing Standards (SAS) 87.
Effective Date This statement currently is effective.
Applicability Engagements involving the issuance of reports based on:
1. Subject matter or presentations on measurement or disclosure criteria contained in contractual agreements or regulatory provisions.
2. A by-product of a financial statement audit.
NOTE: Does not apply to Section 324, Service Organizations, or reports issued under Section 634, Letters for Underwriters and Certain Other Requesting Parties.


SAS No. 125, Alert That Restricts the Use of the Auditor’s Written Communication, is effective for audits of financial statements with periods ending on or after December 15, 2012.

AU-C 905 clarifies that it applies to auditor’s reports and other written communications issued in connection with a GAAS engagement and requires an alert that restricts the use of the auditor’s written communication when the subject matter of that communication is based on:

1. Measurement or disclosure criteria that are determined by the auditor to be suitable only for a limited number of users who can be presumed to have an adequate understanding of the criteria;
2. Measurement or disclosure criteria that are available only to the specified parties; or ...

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