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

PCAOB 6: Evaluating Consistency of Financial Statements1

IMPORTANT NOTE: The guidance in this section applies to the preparation and issuance of audit reports for all issuers as defined by the Sarbanes–Oxley Act.

EFFECTIVE DATE AND APPLICABILITY

Effective Date	This standard currently is effective.
Applicability	Engagements conducted pursuant to Public Company Accounting Oversight Board (PCAOB) standards, including an audit of financial statements, an audit of internal control over financial reporting, and a review of interim financial information.

DEFINITIONS OF TERMS

Change in accounting principle. A change from one generally accepted accounting principle (GAAP) to another when there are at least two applicable GAAPs, or when the accounting principle formerly used by an entity is no longer generally accepted. A change in accounting principle also arises when there is a change in the method of applying an accounting principle.

NOTE: A correction of a misstatement occurs when an entity changes from an accounting principle that is not generally accepted to one that is generally accepted.

Change in reporting entity. A change resulting in financial statements that are now those of a different reporting entity.

Current period. The most recent year, or a period of less than one year, upon which the auditor is reporting.

OBJECTIVES OF PCAOB STANDARD 6

PCAOB Auditing Standard 6 sets forth the general requirements for evaluating the consistency of an entity’s financial statements. ...