Wiley Practitioner's Guide to GAAS 2020

41AU-C 905 Alert That Restricts the Use of the Auditor’s Written Communication

Scope

Definition of Term

Objective of AU-C Section 905

Requirements

Reports Required to Be Restricted

Limiting Report Distribution

Required Restricted-Use Report Language

Adding Other Specified Parties

Inclusion of a Separate Restricted-Use Communication and a Separate General-Use Communication in the Same Document

Combined Communication Covering Both Restricted-Use and General-Use Subject Matter or Presentations

AU-C 905 Illustrations

Illustration 1. List of Sections Relating to the Restricted Use of the Auditor’s Written Communication (Source: AU-C 905 Appendix A)

Illustration 2. Illustrative Auditor’s Written Communication

Illustration 3. Illustrative No Material Weakness Communication

Illustration 4. Report on Compliance with Aspects of Contractual Agreements Given in a Combined Report, and No Instances of Noncompliance Were Identified

SCOPE

AU-C 905 offers guidance on language restricting the use of the auditor’s report that is included in the auditor’s report or other written communication issued by the auditor in connection with an engagement conducted in accordance with GAAS. This language is referred to in this section as an alert and is included in an other-matter paragraph. (AU-C 905.01) Illustration 1 at the end of this chapter identifies AU-C sections that contain specific requirements to include an alert or address the inclusion of such alerts. (AU-C 905.02)

DEFINITION OF TERM