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AICPA American Institute of
Certified Public Accountants
Association With
Financial Statements
( Supersedes Statement on Auditing Standards No. 1, sections 516, 517, and 518 and
Statement on Auditing Standards No. 15, paragraphs 13— 15) 1
1. The fourth standard of reporting is:
The report shall either contain an expression of opinion regarding
the financial statements, taken as a whole, or an assertion to the effect
that an opinion cannot he expressed. When an overall opinion cannot
he expressed, the reasons therefor should he stated. In all cases where
an auditor's name is associated with financial statements, the report
should contain a clear- cut indication of the character of the auditor's
examination, if any, and the degree of responsibility he is taking.
The objective of the fourth reporting standard is to prevent misinterpretation
of the degree of responsibility the accountant assumes
when his name is associated with financial statements.
2. This Statement defines association as that term is used in the
fourth reporting standard. It provides guidance to an accountant associated
with the financial statements of a public entity or with a
nonpublic entity's financial statements that he has been engaged to
1This Statement amends SAS No. 2 by the addition of the following to footnote 10:
If an accountant is engaged to conduct an examination of the financial statements of a
nonpublic entity in accordance with generally accepted auditing standards, but is requested
to change the engagement to a review or compilation of the statements, he should
look to the guidance in Statement on Standards for Accounting and Review Services 1,
paragraphs 44— 49.
Copyright © 1979 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036
Statement on
Auditing Standards
Issued by the Auditing Standards Board
November 1979 26
