Statement on auditing standards, 032

              Statement on
Auditing Standards
Issued by the Auditing Standards Board
AICPA American Institute of
Certified Public Accountants
October 1980
32
Adequacy of Disclosure
in Financial Statements
( Supersedes Statement on Auditing Standards No. 1, section 430, " Adequacy of
Informative Disclosure.")
1. The third standard of reporting is:
Informative disclosures in the financial statements are to be regarded
as reasonably adequate unless otherwise stated in the report.
2. The presentation of financial statements in conformity with gen­erally
accepted accounting principles includes adequate disclosure
of material matters. These matters relate to the form, arrangement,
and content of the financial statements and their appended notes,
including, for example, the terminology used, the amount of de­tail
given, the classification of items in the statements, and the bases
of amounts set forth. An independent auditor considers whether a
particular matter should be disclosed in light of the circumstances
and facts of which he is aware at the time.
3. If management omits from the financial statements, including
the accompanying notes, information that is required by generally
accepted accounting principles, the auditor should express a qualified
or an adverse opinion and should provide the information in his re­port,
if practicable, unless its omission from the auditor's report is
Copyright © 1980 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036
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