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January 1976 Statement on Auditing Standards Issued by the Auditing Standards Executive Committee American Institute of Certified Public Accountants Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments 1 1. This Statement provides guidance on the procedures an independent auditor should consider for identifying litigation, claims, and assessments and for satisfying himself as to the financial accounting and reporting for such matters when he is performing an examination in accordance with generally accepted auditing standards. Accounting Considerations 2. Management is responsible for adopting policies and procedures to identify, evaluate, and account for litigation, claims, and assessments as a basis for the preparation of financial statements in conformity with generally accepted accounting principles. 1 This Statement supersedes the commentary, " Lawyers' Letters," January 1974 ( AU section 1001), and auditing interpretations of section 560.12 of SAS No. 1 on lawyers' letters, January 1975 ( AU section 9560.01-. 26). It amends section 560.12( d) to read as follows: " Inquire of client's legal counsel concerning litigation, claims, and assessments ( see SAS No. 1 2 ) ." Copyright © 1976 by the American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N. Y. 10036