This proposed SAS is part of the ASB’s Clarity Project and
- Eliminates the use of the term "restricted use" and instead addresses the intended use of such communications.
- Establishes an umbrella requirement to include an alert as to the intended use of the auditor’s written communication when the subject matter of that communication is based on measurement or disclosure criteria that are determined by the auditor to be suitable only for a limited number of users who can be presumed to have an adequate understanding of the criteria, measurement or disclosure criteria that are available only to the specified parties, or matters identified by the auditor during the course of the engagement that are not the primary objective of the engagement (commonly referred to as a by-product report).
- Modifies the guidance pertaining to single combined reports covering both (a) communications that are required to include an alert as to intended use and (b) communications that are for general use, which do not ordinarily include such an alert.
The proposed SAS would be effective for written communications related to audits of financial statements for periods ending on or after December 15, 2012, and, for all other engagements conducted in accordance with generally accepted auditing standards (GAAS), for written communications issued on or after December 15, 2012.
Proposed SASs are available for download on the AICPA's website http://www.aicpa.org/.
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