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[The following paragraph was effective for audits of financial statements for fiscal years ending on or after June 30, 2001. It was amended, effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004.

Return to the current version.]


In evaluating the adequacy of presentation and disclosure, the auditor should consider the form, arrangement, and content of the financial statements and their notes, including, for example, the terminology used, the amount of detail given, the classification of items in the statements, and the bases of amounts reported. The auditor should compare the presentation and disclosure with the requirements of generally accepted accounting principles. However, the auditor should also follow the guidance in section 431, Adequacy of Disclosure in Financial Statements, in evaluating the adequacy of disclosure that is not specifically required by generally accepted accounting principles.