AICPA Issues New Interpretation of Auditor Reports

The American Institute of CPAs’ Auditing Standards Board  has issued a new auditing interpretation on audit reports.

Auditing Interpretation No. 3, “Reporting on Audits Conducted in Accordance with Auditing Standards Generally Accepted in the United States of America and International Standards on Auditing,” supplements AU-C section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards).

The new auditing interpretation addresses the implications for the auditor’s report when reporting on an audit conducted in accordance with both generally accepted auditing standards and the new and revised auditor reporting ISAs when the auditor intends to refer to both sets of standards.

The interpretation is a result of the International Auditing and Assurance Standards Board’s January 2015 release of new and revised International Standards on Auditing relating to reporting on audited financial statements.