Statements on Auditing Procedure
Issued by the Committee on Auditing Procedure, American Institute of Accountants, 270 Madison Avenue, New York 16, N. Y.
Copyright 1949 by American Institute of Accountants
Clarification of Accountant's Report When Opinion Is Omitted
The committee on auditing procedure of the American Institute of Accountants in December, 1947, issued Statements on Auditing Procedure No. 23, Clarification of Accountant's Report When Opinion Is Omitted, in which it proposed an amendment to Extensions of Auditing Procedure designed to improve current report-ing practices. Following the issuance of Statement No. 23, it became evident that there was considerable mis-understanding in the profession as to the objectives of the proposed amendment and its application in practice. Accordingly, the proposed amendment was revised in May, 1949, to explain more fully the committee's views on the subject. The amendment, as thus revised, was submitted to the annual meeting of the American In-stitute of Accountants in November, 1949, and was formally adopted.
This statement is a revision of Statements on Auditing Procedure No. 23, incorporating the amendment as adopted by the membership. It supersedes the original Statement No. 23.
1. The presentation of financial statements on the stationery or in a report of an independent public accountant without a definitive expression clearly indicating the representations he is making as to their fairness tends to create uncertainties in the minds of those who do not have special information regarding the preparation of the financial statements. In such cases, these third parties have no basis for determining what inferences are warranted by the association of the accountant's name with the financial statements and may place undue reliance upon them.