|Original Pronouncements||Statements on Auditing Standards (SASs) 42 and 71.|
|Effective Date||These statements currently are effective.|
|1. On condensed financial statements in a client-prepared document for an annual or interim period, derived from audited financial statements of a public entity that is required to file, at least annually, complete audited financial statements with a regulatory agency; or|
|2. On selected financial data in a client-prepared document of a public or nonpublic entity, derived from audited financial statements that are presented in a document that includes audited financial statements, or that (if a public entity) incorporates such statements by reference. (See “AU Objectives of Section 552” and “Objectives of AU-C Section 810” for additional explanation of applicability.)|
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.
The clarified SAS addresses the auditor’s responsibilities when reporting on summary financial statements derived from financial statements audited by that same auditor. Accordingly, an auditor cannot report on summary financial statements unless the auditor ...