STATEMENT ON AUDITING PROCEDURE
Reporting on the Statement of Changes in Financial Position
(Supersedes paragraph 6 of Chapter 10 of Statement on Auditing Procedure No. 33)
1. In March 1971 the Accounting Principles Board issued Opinion No. 19, "Reporting Changes in Financial Position," that generally requires profit-oriented business entities to present a statement summarizing periodic changes in financial position (referred to herein as a statement of changes) as a basic financial statement. The purpose of this Statement on Auditing Procedure is to revise the recommended short-form auditor's report in order to foster uniformity of language in giving recognition to the pro-visions of APB Opinion No. 19 in reporting on financial state-ments that purport to present financial position and results of operations.
2. In paragraph 7 of Opinion No. 19, the Accounting Princi-ples Board (a) concluded that . . information concerning the financing and investing activities of a business enterprise and the changes in its financial position for a period is essential for financial statement users. . . ." and (b) declared that "when financial statements purporting to present both financial position (balance sheet) and results of operations (statement of income
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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