Statements on Auditing Procedure
Issued by the Committee on Auditing Procedure, American Institute of Certified Public Accountants 270 Madison Avenue, New York 16, N. Y.
Copyright 1958 by American Institute of Certified Public Accountants
Scope of the Independent Auditor's Review of Internal Control
1. The purpose of this statement is to clarify previous pronouncements relating to the scope of the independent auditor's review of internal con-trol as it pertains to his examination leading to an expression of opinion on the fairness of financial statements. No attempt is made in this state-ment to consider the scope of reviews of internal control by the indepen-dent auditor for other purposes, such as special engagements involving systems surveys, revisions, etc.
BACKGROUND AND DISCUSSION
2. The standard short-form report1 includes the following sentence:
"Our examination was made in accordance with generally ac-cepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances."
3. The generally accepted auditing standard relating to internal control is summarized in the standards of field work2 as follows:
"There is to be a proper study and evaluation of the existing internal control as a basis for reliance thereon and for the deter-mination of the resultant extent of the tests to which auditing procedures are to be restricted."
1 Codification of Statements on Auditing Procedure, page 16. 2Generally Accepted Auditing Standards, page 13.