Wiley Practitioner's Guide to GAAS 2022

45AU-C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework

• Scope
• Definitions of Terms
• Objective
• Requirements
  • Applicability to Proposals
  • Engagement Acceptance
  • Engagement Planning and Performance
  • Reporting Standards
  • Documentation
• Illustration: Illustrative Written Report to the Requesting Party

SCOPE

AU-C 915 applies to providing written advice:

• On the application of accounting principles to specified transactions (completed or proposed) involving facts and circumstances of a specific entity
• On the type of report that may be rendered on a specific entity's financial statements

  (AU-C 915.01)

The Section applies to these situations whether the advice is provided as part of a proposal to obtain a new client or as a separate engagement.

Section 915 applies to oral advice in the following circumstances:

• The reporting accountant concludes the advice is intended to be used by a principal as an important factor in reaching a decision; and
• The advice relates to the application of accounting principles to a specific transaction or the type of opinion that may be rendered on a specific entity's financial statements.

  (AU-C 915.02)

Section 915 does not apply to:

• A continuing accountant engaged to report on the financial statements of a specific entity
• An engagement to assist in litigation involving accounting matters or provide expert testimony in litigation (i.e., litigation service engagements)
• Advice provided to another accountant in public ...