Wiley Practitioner's Guide to GAAS 2020

26AU-C 585 Consideration of Omitted Procedures after the Report Release Date

Scope

Definition of Term

Overview

Professional Disagreements

No Substitute for Omitted Procedures

Objectives of AU-C Section 585

Requirements

Assessing the Effect of Omitted Procedures

Applying Omitted Procedures

Inability to Apply Omitted Procedures

Determining Importance of Omitted Procedures

AU-C 585 Illustration—Applying the Omitted Procedure

SCOPE

AU-C 585 provides guidance when the auditor realizes after the report release date that one or more necessary auditing procedures were omitted. (AU-C 585.01) AU-C 585 does not apply when the auditor’s work is an issue in a threatened or pending legal proceeding or regulatory investigation. (AU-C 585.02)

Section 560, Subsequent Events and Subsequently Discovered Facts, provides guidance when the auditor becomes aware, subsequent to the date of the report on the audited financial statements, that facts may have existed at that date that might have affected the financial statements or the audit report had the auditor been aware of those facts. These facts usually relate to the financial statements and whether those financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles (GAAP).

Section 560 applies to facts that indicate possible misstatement of financial statements, whereas Section 585 applies to the possible omission of auditing procedures. The application of Section 560 is initiated ...