Stay Connected: Twitter Facebook Flickr RSS E-Mail
Skip navigation links
About the PCAOB
Rules of the Board
Registration & Reporting
Standards
Inspections
Enforcement
International
Research & Analysis
News & Events
Skip navigation links
Auditing
Ethics & Independence
Quality Control
Attestation
Superseded
Guidance
Current Activities
SAG

Click Plus Sign Icon to expand menu items
Click Minus Sign Icon to collapse menu items

[The following paragraph was effective for audits of financial statements for periods ending after March 15, 1992. 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.]

.04

The auditor's opinion that financial statements present fairly an entity's financial position, results of operations, and cash flows in conformity with generally accepted accounting principles should be based on his or her judgment as to whether (a) the accounting principles selected and applied have general acceptance; (b) the accounting principles are appropriate in the circumstances; (c) the financial statements, including the related notes, are informative of matters that may affect their use, understanding, and interpretation (see section 431); (d) the information presented in the financial statements is classified and summarized in a reasonable manner, that is, neither too detailed nor too condensed (see section 431); and (e) the financial statements reflect the underlying transactions and events in a manner that presents the financial position, results of operations, and cash flows stated within a range of acceptable limits, that is, limits that are reasonable and practicable to attain in financial statements. fn 1