Wiley Practitioner's Guide to GAAS 2020

49AU-C 945 Auditor Involvement with Exempt Offering Documents

Scope

Definitions of Terms

Objectives of AU-C Section 945

Requirements

SCOPE

In July 2017, the ASB issued SAS No. 133, Auditor Involvement with Exempt Offering Documents, and codified the guidance in AU-C 945. Legislation has expanded exempt offerings, and the ASB recognized the need for more guidance regarding auditor’s responsibility in this area. The SAS is effective for exempt offering documents with which the auditor is involved that are initially distributed, circulated, or submitted on or after June 15, 2018.

AU-C 945 guidance applies only when both of the following exist:

1. The auditor’s report on financial statements or the auditor’s review report on interim financial information of an entity is included or incorporated by reference in an offering document relating to either of the following:
   1. Securities, when either the transaction or the securities themselves are exempt from registration under the Securities Act of 1933, as amended (Securities Act of 1933)
   2. Franchise offerings regulated by the Federal Trade Commission (FTC) or applicable state franchise laws
2. The auditor performs one or more of the following activities with respect to the exempt offering document.
   1. Assisting the entity in preparing information included in the exempt offering document
   2. Reading a draft of the exempt offering document at the entity’s request. Issuing a comfort or similar letter in accordance with AU-C section 920, Letters ...