[The following paragraph 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.]


Section 319, Consideration of Internal Control in a Financial Statement Audit, requires the auditor to obtain an understanding of internal control that will enable the auditor to—

  1. Identify the types of potential misstatement of the assertions.
  2. Consider factors that affect the risk that the misstatements would be material to the financial statements.
  3. Design tests of controls, when applicable.
  4. Design substantive tests.

[Revised, May 2001, to reflect conforming changes necessary due to the issuance of Statement on Auditing Standards No. 94.]