Issued by the Auditing Standards Board
American Institute of Certified Public Accountants
The Meaning of Present Fairly
in Conformity With
Generally Accepted Accounting
Principles in the
Independent Auditor's Report
( Supersedes AU sec. 411, AICPA, Professional Standards, vol. 1.)
1. An independent auditor's unqualified opinion usually reads as
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of X Company as of ( at)
December 31, 19XX, and the results of its operations and its cash flows for
the year then ended, in conformity with generally accepted accounting
The purpose of this section is to explain the meaning of the phrase " present
fairly... in conformity with generally accepted accounting principles"
in the independent auditor's report.
2. The first standard of reporting requires an auditor who has audited
financial statements in accordance with generally accepted auditing
standards to state in the auditors report whether the statements are
presented in accordance with generally accepted accounting principles.
Copyright © 1992 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036- 8775
1 234567890 AudS 998765432
January 1992 69