Wiley Practitioner's Guide to GAAS 2022

43AU-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

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) Auditor's written communications may also include:

• Letters such as those communicating internal control related matters or
• Presentations addressing communications with those charged with governance

  (AU-C 905.A1)

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

Source: AU-C 905.04. For the definition related to this standard, see Appendix A, “Definitions of Terms”: Specified parties.

OBJECTIVE OF AU-C SECTION 905

AU-C Section 905.04 states that:

… the ...