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AU Section 410

Adherence to Generally Accepted Accounting Principles

Source: SAS No. 1, section 410; SAS No. 62.
See section 9410 for interpretations of this section.
Issue date, unless otherwise indicated: November, 1972.

.01

The first standard of reporting is:

The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles.

[The following paragraph is effective November 15, 2008. See PCAOB Release 2008-001 (January 29, 2008). For the paragraph effective before November 15, 2008, click here.]

.02

The fourth standard of reporting is:

The report shall either contain an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed. When an overall opinion cannot be expressed, the reasons therefor should be stated. In all cases where an auditor's name is associated with financial statements, the report should contain a clear-cut indication of the character of the auditor's work, if any, and the degree of responsibility the auditor is taking. fn 1

[.03–.04]

[Superseded July 1975 by Statement on Auditing Standards No. 5, as superseded by section 411.]

Footnotes (AU Section 410 — Adherence to Generally Accepted Accounting Principles):

fn 1 When an auditor reports on financial statements prepared in accordance with a comprehensive basis of accounting other than generally accepted accounting principles, the first standard of reporting is satisfied by disclosing in the auditor's report that the statements have been prepared in conformity with another comprehensive basis of accounting other than generally accepted accounting principles and by expressing an opinion (or disclaiming an opinion) on whether the financial statements are presented in conformity with the comprehensive basis of accounting used (see section 623, Special Reports, paragraphs .02-.10).