STATEMENT ON AUDITING PROCEDURE
Reports on Internal Control
1. Independent auditors are sometimes requested to furnish reports on their evaluation of internal control for use by manage-ment, regulatory agencies, other independent auditors, or the general public. The purpose of this Statement is to improve the understanding of such reports with reference to the nature and effectiveness of internal control and the independent auditor's evaluation of it.
2. As used in this Statement, management includes directors, officers, and others who perform managerial functions; regulatory agencies include both governmental and other agencies, such as stock exchanges, that exercise regulatory, supervisory, or other public administrative functions; and the general public includes present and prospective investors, creditors, customers, and others who have an interest in particular organizations.
3. This Statement supplements, but does not supersede, Chap-ter 5 of Statement on Auditing Procedure No. 33, which also deals with internal control.
Issued by the Committee on Auditing Procedure American Institute of Certified Public Accountants
COPYRIGHT 1971 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC.
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