Statement on auditing standards, 005

              AICPA 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 Statement on Auditing Standards No. 1,
section 410.03-. 041)
1. An independent auditor's unqualified opinion usually reads as
follows:
In our opinion, the financial statements referred to above present
fairly the financial position of X Company as of ( at) December 31,
19XX, and the results of its operations and the changes in its financial
position for the year then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the
preceding year.
The purpose of this Statement is to explain the meaning of the phrase
" present fairly . . . in conformity with generally accepted accounting
principles" in the independent auditor's report. 2
1This Statement amends the text of section 210.05 of SAS No. 1 by deletion
of the last sentence to that section.
2This Statement clarifies and explains matters relating to the form of auditor's
report presently in use; the Statement is not a result of a reconsideration of the
form itself.
Copyright © 1975 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036
5 Issued by the Auditing Standards Executive Committee
Statement on July 1975
Auditing Standards