[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.]


[The following paragraph is amended by PCAOB Auditing Standard No. 3, Audit Documentation, effective for audits of fiscal years ending on or after November 15, 2004 , and effective for other engagements conducted pursuant to the standards of the PCAOB , including reviews of interim information, in the first quarter ending after the first audit covered by Auditing Standard No. 3. See PCAOB Release No.2004-006.

For periods prior to the effective date of Auditing Standard No. 3, click here.]

When the principal auditor decides not to make reference to the audit of the other auditor, in addition to satisfying himself as to the matters described in AU sec. 543.10, the principal auditor must obtain, and review and retain, the following information from the other auditor:

a. An engagement completion document consistent with paragraphs 12 and 13 of PCAOB Auditing Standard No. 3

Note: This engagement completion document should include all cross-referenced, supporting audit documentation.

b. A list of significant fraud risk factors, the auditor’s response, and the results of the auditor’s related procedures.

c. Sufficient information relating to significant findings or issues that are inconsistent with or contradict the auditor's final conclusions, as described in paragraph 8 of PCAOB Auditing Standard No. 3.

d. Any findings affecting the consolidating or combining of accounts in the consolidated financial statements.

e. Sufficient information to enable the office issuing the auditor’s report to agree or reconcile the financial statement amounts audited by the other firm to the information underlying the consolidated financial statements.

f. A schedule of audit adjustments, including a description of the nature and cause of each misstatement.

g. All significant deficiencies and material weaknesses in internal control over financial reporting, including a clear distinction between those two categories.

h. Letters of representations from management.

i. All matters to be communicated to the audit committee.

The principal auditor must obtain, and review and retain, such documents prior to the report release date.fn 5 In addition, the principal auditor should consider performing one or more of the following procedures:

• Visit the other auditor and discuss the audit procedures followed and results thereof.

• Review the audit programs of the other auditor. In some cases, it may be appropriate to issue instructions to the other auditor as to
the scope of the audit work.

• Review additional audit documentation of the other auditor relating to significant findings or issues in the engagement completion document.