Sections I General Standards T raining I Independence (in appearance and fact) P rofessional care Standards of Fieldwork P lanning &

supervision I internal control, entity, & environment E Evidence Standards of Reporting A Acccouting=GAAP (explicit) C Consistency (implicit) D Disclosure (implicit) O Opinion (explicit) R esponsibility of mgmt. are the FSs & responsibilty of auditor is to express on opinion on them A udit was conducted in Accordance with GAAS P audit was Planned and Performed to obtain reasonable assurance M the FS are free of Material Misstatements E audit included examing evidence on a test basis A Assessing the Accting principles used M signif. Estimates Made by Mgmt. Opinion Paragraph 1 Stmt. Referring to F.S. in intro paragraph. 2 Opinion of fair representation of FS (ACDO) 3 Stmt regarding conformity w/ US GAAP (ACDO) Going Concern Procedures to perform to assess GOING CONCERN A nalytical procedures D ebt compliance M inutes I nquiry of client's legal counsel T hird parties S ubsequent events review "Substantial Doubt about its ability to continue as a Going Concern." Conditions & Events F inancial difficulties I nternal matters N egative trends E xternal matters Emphasis of a Matter Items to emphasize R elated-party transaction E vent (Signif. Subsequent) C omponent (of larger business enterprise) C omparability (accting matters, other than Chng. In Acct. Prin.)

GAAP Problems
Lack of Consistency (Acceptable/Justified Chngs in Acct. Prin.) Acceptability of Accting Change a. Change to an Acceptable Principle b.Method of accounting for the change is acceptable c. Mgmt is Justified in the change *MUST be satisfied with all 3 to express UNQUALIFIED w/ Explanatory Par. AFTER No revision to the report if: immaterial OR chng. In accting est. or correction of errors. Non-GAAP Change in Accting Principle (GAAP ISSUE: Qualified or Adverse): a. Change to an Acceptable Principle b. Method of accounting for the change is acceptable c. Mgmt is Justified in the change *If any one of these is not met, the auditor would express: QUALIFIED or ADVERSE Explanatory Par. BEFORE Inadequate Disclosure (GAAP ISSUE: Qualified or Adverse): An entity's failure to disclose information that is required by GAAP will generally result in: a. Expression of a QUALIFIED or ADVERSE opinion (Depending on materiality) b. Missing info should be disclosed in Expanatory par. BEFORE Opinion Par.

GAAP Departures Justified GAAP Departure = Modified Unqualified Unneccessary Departure = "Except for" or Adverse The ADVERSE Opinion - GAAP Problems *Four Situations in which an auditor expresses an ADVERSE opinion --\VERY MATERIAL 1 Non-GAAP Change--Auditor Disagrees 2 Inadequate Disclosure 3 Departure from GAAP (Not Necessary and Not Justified) 4 Unreasonable Accting Estimate

GAAS Problems- Qualified Opinion

1 Uncertainty- Unless there is evidence supporting management's reproting of the uncertainty 2 Scope LimitationMaterial Scope Limitation- Qualified a. Time Contraints Scope"except for" b. Inability to obtain sufficient appropriatie Audit Evidence Opinion "except for" c. Refusal of Mgmt. to provide.-->Mgmt. Rep. Letter d. Refusal of client's attorney to respond to inquiry * When significant limitations are imposed by the clilent, the auditor should disclaim an opinion.

GAAS Problems- Disclaimer of Opinion

1 Uncertainty 2 Scope Limitation 3 Lack of Independence Always DISCLAIMER! 4 Unaudited Report * "were engaged to audit" -- DELETE reference to auditor's Responsibility Intro Scope (Excluded) Explanatory- Reasons for Disclaimer & Stmts. Not in accord w/ GAAP (if not in accordance w/ GAAP) Opinion FALSE/FRAUDULENT/DECEPTIVE/MISLEADING = WITHDRAW Reports on Comparative Fin. Stmts. If updated opinion differs from previous opinion, the auditor should disclose the reason(s) in a Explanatory par. PRECEDING the Opinion par. Format D ate of the auditor's prev. report O pinion type previously issued R eason for the prior opinion C hanges that have occurred S tatement that the "opinionis different." Remember only "DORCS" change their mind. Report of a Predecessor Auditor- Presented In deciding whether to reissue their report, the predecessor auditor should: i Read the stmts. For the curr. Period ii Compare the stmts. Audited w/ the curr. period stmts. iii Obtain letter of Representation from the successor auditor iv " " " " Mgmt. Report of a Predecessor Auditor- NOT Presented Successor auditor should indicate in the INTRO Par: 1 the Stmts were examined by Another Auditor in Prior Periods 2 Date of the Predecessor auditors report 3 Type of opinion expressed by the predecessor auditor 4 Substantive reason(s) for other than an unqualified report. SUBSEQUENT EVENTS TYPE I EVENTS- conditions existing on or before the balance sheet date Require F.S. Adj. TYPE II EVENTS- conditions existing after the balance sheet date May Require a Footnote disclosure Auditor's responsibility for Subsequent Events = DURING FIELDWORK P ost balance sheet transactions R epresentation letter should be obtained from Mgmt. I nquiry M inutes of Stockholders, Directors, & other Committee meetings E xamine the latest interim financials and compare with the financials under audit

Section II Quality Control Standards H uman resources E ngagement/client acceptance and continuance L eadership responsiblities P erfomance of th engagement M onitoring E thical requirements * Quality Control Standards should H-E-L-P-M-E Special Report OCBOA- Cash, Income tax, Regulatory agency, price-level Specific elements, Accounts, or Items of a FS Compliance: Audited FS --> Negative Assurance (in a separate report OR addt'l par. Following following OPINION) Compliance: Financial Presentation- Usually always restricted use 1.) Incomplete Fin. Presentation, GAAP or OCBOA 2.) Special-Purpose Fin. Presentation - NOT - GAAP or OCBOA GR- CPA's reports are usually restricted when the FS are in compliance w/ a contract Forms Compilation and Review of FS's Compilation- NO Assurance Review- Limited Assurance Performance of more than 1 service-Issue the report that is appropriate for the highest level of service rendered. SSARS- ( Statements on Standards for Accounting and Review Services) the Accounting and Review Services Committee of the AICPA is the authoritative body designated to issue the pronoucements in conneciton with the unaudited financial statements of nonissuers) Compilation of FS's (NON-issuers only) Compilation Requirements: 1. Knowledge of Industry Accouting Principles and Practices 2. Understanding a Client's Business S taff Qualifications T ransaction types and frequency A ccounting basis used to prepare FS's F orm of the accounting records F inancial statmements' form and content 3. Reading the FS's 4 Fraud and Illegal Acts, Going Concern & Subsequent Events Reporting on a Compilation (Independence not Req'd) ICPA (performed in accordance w/) imited (to info that is the representation of Mgmt.) not Audited not Reviewed isclaimer of Opinion You're "A LARD" when all you do is Compile F/S.
if NOT Independent last Par. Must disclose lack of independence, but not reasons

A L A R D *

*Compilation w/ Omission of ALL Disclosures* Acceptable if: 1. The F/S are otherwise in conformity with GAAP 2. Reason for omission was not to deceive user. 3. Compilation report warns user of missing disclosures. Review Requirements (Limited Assurance) nderstanding w/ client must be established earn and/or obtain sufficient knowledge of the entity's business nquiries should be addressed to appropriate individuals,(Internal NOT External nalytical procedures should be performed eview-- other procedures should be performed lient representation letter should be obtained from management rofessional judgement should be used to evaluate results ccountant (CPA) should communicate results

U L I A R C P A

NOT REQUIRED 1 Test Internal Control 2 Perform Audit Tests 3 Assess Fraud Risk

4 Communicate w/ Predecessor Accountant (Judgement) Mgmt. Rep. Letter (REQUIRED) Contents of Letter: 1. Mgmt's responsibility for F/S 2. Mgmt.'s full and truthful responses 3. Representations about the completeness 4.Information concerning subsequent events 5. Acknowledgement of mgmt's responsibility to prevent/detect fraud 6. Knowledge of any material fraud or suspected fraud. Reporting on a Review A ICPA (performed in accordance w/) M gmt's representation of F/S info I nquiries A nalytical Procedures S ubstantially less in Scope than an --> A udit D isclaimer issued (NO OPINION is expressed) * A stmt. that the accountant is not aware of any material modifications that should be made to the F/S in order for them to be in conformity with GAAP. (LIMITED ASSURANCE) Reporting on Comparitive F/S Compiled F/S that omit substantially all disclosures are not comparable to F/S that include all Disclosures CPA may not report on compiled F/S for XXX2, if F/S for XXX1 omitted substantially all disclosures ATTEST ENGAGEMENTS Standards (11) Five General Standards: T raining & Proficiency I ndependence P erformance/ due care P rofessional / adequate knowledge of subject matter Y our belief that subject matter is capable of evaluation by other users Two Fieldword Standards: P lanning and Supervision Omits I/C A ppropriate, sufficient evidence Four Reporting Standards: S ubject matter or Assertion being reported on S ignificant reservations about the engagement E xpress conclusions about subject matter R estrict the use of report to specified parties when: a) Criteria are not appropriate or avail to lmt'd # of parties b) Reporting on subj. matter and a written assertion has not been provided c) Reporting on an agreed-upon procedures engagement Examination- Posistive Opinion Review "Negative Assurance" If no Written Assertion is provided by Mgmt i. If the client is the responsible party--> Withdraw ii. If the client isn't the responsible party--> Use restricted AGREED-UPON PROCEDURES ENGAGEMENTS - No Assurance I ndenpendence of the Practitioner A greement of the Parties M easurability and Consistency S ufficiency of the Procedures U se of the Report is Restricted to the Specified Parties R esponsibility for the Subject Matter- client is responsible or can to Perform Agreed-upon ngagementprovide eveidence that a 3rd party is responsible E Procdures on Prospective financial Statements *Must include signif. Asumptions* Prospective F/S- Review NOT Allowed Financal Forecast = General & Limited Use NORMAL CIRCUMSTANCES Financal Projection = Limitied use ONLY!

Section III - Planning and Internal Control Financial Statement Assertions Categories of Assertions (3 Categories) A. Transactions and Events C ompleteness. All transactions and evenets that hsould have been recorded have been recorded. P roper Period (Cutoff) Transactions and eventshave been recorded in the correct (proper) accounting period. A ccuracy Amts and other data are recorded appropriately C lassificiation transactions and events --> recorded in proper account. O ccurence transactions and events that have been recorded occurred and pertained to the entity. B. Account Balances C ompleteness. All assests, liabilities, and equity interests that should have been recorded have been recorded. A llocation and Valuation Items on the F/S @ appropriate amts, and any resulting adjs are approp. Recorded. R ights and ObligationsEntity holds rights to assets and liabilities are the obligation of the entity. E xistence Assets, Liabs, & Equity EXIST. C. Presentation and Disclosure C ompleteness. All disclosures that should be included in F/S are included. U nderstandability Fin. Info is approp. Presented and described & disclosures are clear R ights and Obligations, and Occurrence Disclosed events & transactions have occurred and pertain to the entity. V aluation and Accuracy. Information is disclosed fairly & at approp Amts. *"A CPA CO CAREs about CURVed assertions." Risk Assessment I nternal Control- Understanding M aterial Misstatement- Assess A ssessed Risk Response C ontrol Testing P erform Substantive Testing A udit Evidence- Evaluate Appropriateness & Sufficiency

Internal Control An inherent limitation of internal control is a limitiation that prevents semmingly good controls from working.

C R I M E

ontrol Environment isk Assessment noformation and Communication onitoring xisisting Control Activities Organizational Structure of IT Dept.

C O P A L

ontrol Group perators rogrammers nalysts ibrarian

P A I D T I P S

Existing Control Activities renumbering documents uthorization of transactions ndependent checks to maintain asset accountability ocumentation imely and appropriate perofmance reviews nformation processing controls hysical conrols for safeguarding assets egregation of duties Segregation of Duties

A uthorization R ecordkeeping C ustody of related assets

Standard Auditing Procedures F ooting, Crossfooting, & Recalculating I nquiry V ouching- The auditor examines support for what has been recorded. (Exisistence & Occurrence) E xamination/Inspection (Existence, generally not R&O) C onfirmation - TOC- (1.)Inquire (2.)Observe (3.)Inspect (4.)Reperform A nalytical ProceduresR eporformance R econciliation O bservation T racing- Looking for coverage in the opposite direction of vouching starts with source documents and traces forward (Completeness) S ubsequent Events Review

P A I D T I P S

Control Procedures renumbering Checks uthorization ndependent checks to maintain Accountability ocumentation- all changes imely & appropriate performance reviews nformation Processing Controls hysical controls for Safeguarding Assets egregation of Duties: ARC - Payroll- records, Treasurer-signs

Auditors want evidence that is: Sufficient (Quantity) Appropriate (Quality) -Relevant and Reliable A. Best Directly from Auditor B. 2nd Best - Originates from external party Direct Confirm Held by Client (Bank Stmt. C. Weakest: Oral evidence from Mgmt. Ratios TAT: Net Sales / Average assets Inv. T/O COGS / Avererage Inventory A/R T/O Credit Sales (NET) / Average A/R Mgmt's Estimates First and foremost, you need to understand Mgmt's rationale and methods for developing estimates BEFORE you can judge reasonableness. Auditor should then formulate their OWN opinion on what a Good Estimate should be and compare it. ( Ex: Recalc. A/R Reserve for hospitals, then compared)

Audit Documentation *Must Include a Written Audit Plan. Must be kept for 5 years of Audit Realease Date or according regulations ( whichever is longer.) PCAOB- Req's 7 years If further documents are added to the WPs, after the audit report is issued. -Must: 1.) Document WHO added them 2.)WHY they were added 3.)any AFFECTS to the audit report. After audit report is released, the firm has 60 Days to SUBTRACT from the file, but can still add info. PCAOB- only allows 45 Days to SUBTRACT from the file after release date.

Single Audit Act- Req's Report on I/C GAAS & GAS don't require report on I/C Audit Sampling Substantive Tests Variables Sampling Probability Proportionate to Size Sampling - ($ unit Sampling) Control Tests Attribute Sampling Sampling Risk Risk that Samplie is not Representative of the Pop. Can happen even if Audit is done properly Risk of Assessing Control Risk too HIGH 1.) Risk of CONTROL TESTING 2.) Auditor was to make Control Risk lower- More SUBSTANTIVE testing 3.) Sample overstates Control Risk 4.) Lead to an under-reliance on I/C, over-testing, and overall Audit INEFFICIENCY Risk of Assessing Control Risk too LOW 1.) Risk of CONTROL TESTING 2.) Complement to Confidence Level 3.) Inverse relationship to Sample Size A.) Higher accepted risk of assessing Control risk too LOW = Smaller Sample 4.) B.) Lower accepted risk of assessing Control risk too LOW= Larger Sample 5.) Lead to HIGHER DR = Fewer Substantive Tests 6.) Lead to an over-reliance on I/C, under-testing, and overall Audit INEFFECTIVENESS * Does NOT necessarily mean the F/S are Mat. Missted-it does mean that if there is one, you are LESS LIKELY to find it INCORRECT ACCEPTANCE i. Risk of SUBSTANSTIVE TESTING Auditor Accepts a Bal. as fairly ii. stated, when in fact it is not fairly stated. audit EFFECTIVENESS a. Hurst B. Wrong audit conclusion reached c. Efficienct, but NOT effective INCORRECT REJECTION i. Risk of SUBSTANSTIVE TESTING Auditor Rejects a Bal. as fairly ii. stated, when in fact it is fairly stated. a. Hurst audit EFFIECIENCY B. Wrong recomendation given c. Effective, but NOT efficienct Sampling vs. Non-Samplingthe chance that your Sampling Risk- deals with Risk audit sample is flawed Non-Sampling Risk- deals with the chance that your human decisions/ conclusions are flawed Attribute Sampling a. Looking @ Control Procedures b. Errors stated in terms of %, NOT $ Amt. i. 5 invoices out of 100 were not properly paid 1. Error rate is 5% 2. If you see Error Rate on the Exam, they are referring to attribute sampling. c. Control Procedures are either Operating properly or NOT Operating properly --Based on the Error Rate & the Tolerance you have for Errors d. Tolerable Rate i. Error Rate in Pop. --> you are willing to Accept ii. Inverse to Sample Size 1. Higher Tolerable Rate = Smaller Sample 2. Lower Tolerable Rat = Larger Sample 3. If you're willing to accept a higher probability that erros exist, there is less pressure on the sample iii. Expected Population Error Rate 1. What Error Rate are you expecting? a. Judgement Call b. Based on Experience 2. DIRECT Relationship to Sample Size a. More errors = Larger Sample b. Less errors = Smaller Sample E. Used to Estimate I/C error rate F. Expected Population Deviation (Error) Rate i. Used to determine initial level of CR G. Allowable Risk of Overreliance i. Assessing Control Risk too low ii. Gives you the Sampling Risk H. Attribute sampling is only useful when there is Documented Eveidence (an audit trail) to test I. Use when the existence of an error needs to be Verified or Debunked

Classic Variables Sampling Testing for a $ amt. A. Mean Per Unit i Sample Average * # in Population B. Stratification i. Decreases the effect of Variance in Pop. and Reduces Sample Size Probability Proportionate To Size (PPS) A. Does NOT use STD Dev B. Auditor focuses on $ Amt. C. Larger more valuable items get picked often as part of the sample E. Projected Misstatement i. Misstatement found in sample-- have to project it to remainder of population Classic Variables Sampling VS PPS a. PPS i. Easier to use ii. Results in a statified (homogenous) sample iii. Results in smaller sample size to audit iv. Easy to design b. Classic Variable Sampling i. Easy to expand sample size ii. Selecting zero and negative balances is easy FACTOR THAT MAY AFFECT SAMPLE SIZE' a. Tolerable Rate for Error i. Inverse relationship with Sample Size b. Risk of assessing Control risk too LOW i. Inverse relationship with Sample Size c. Expected Population Error Rate i. Direct relationship with Sample Size d. Population size does NOT affect sample size i. As pop. Is larger, sample size doesn't grow FORMULA FOR AUDIT SAMPLING a. SER + ASR < TER b. Sample Error Rate (SER) i. 5 out of every 100 invoices were not approved correctly ii. Sample Error Rate = 5% c. Allowance for Sampling Risk (ASR) i.. The amount that you add to the SER to get some cushion for your samplel ii. As high as you think the population erro rate could go based on experience iii. ASR is set at 2%, based on judgment iv. Population error rate could reach 7% (5+2) d. Tolerable Error Rate (TER) i. The amount of error rate that you can accept ii. If population error rate is less than TER 1. Accept the Control as EFFECTIVE iii. If population error rate is less than TER 1. Do more testing to get SER lower or 2. Conclude control is NOT Effective Sampling Plans a. Determine Test Objective i. Have sales shipment been billed? b. Define Population and Deviation i. Take sample of shipping document ii. Trace forward to see if they were billed c. Determilne Sample Size based on i. Tolerable Error Rate (TER) ii. Risk of Assessing Control Risk too LOW iii. Expected Population Error Rate d. Select Sampling Technique i. Random ii. Sequential iii. Systematic e. Perform Sampling Plan f. Evaluate Results g. Document Results Sampling Techniques i. Discovery Sampling a. Audit is testing an area that is so crucial, then zero population errors can be tolerated. I. Any Phony employees on payroll? ii. Sequential Sampling a. Also call "Stop or Go" Sampling b. Each audit step determines the next step iii. Systematic Sampling a. Every certain # of a Pop. Is selected b. Pop need to be Randomly ordered c. Primary advantage is Pop doen't Req. pre-numbering iv. Block Sampling Easy to implement, but the worst sampling method

AU 100 Statements on Auditing StandardsIntroduction 110Responsibilities and Functions of the Independent Auditor 120Defining Professional Requirements in Statements on Auditing Standards 150Generally Accepted Auditing Standards 161The Relationship of Generally Accepted Auditing Standards to Quality Control Standards AU 200 The General Standards 201Nature of the General Standards 210Training and Proficiency of the Independent Auditor 220Independence 230Due Professional Care in the Performance of Work AU 300 The Standards of Field Work 311Planning and Supervision 9311Planning and Supervision: Auditing Interpretations of Section 311 312Audit Risk and Materiality in Conducting an Audit 9312Audit Risk and Materiality in Conducting an Audit: Auditing Interpretations of Section 312 314Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement 315Communications Between Predecessor and Successor Auditors 316Consideration of Fraud in a Financial Statement Audit 317Illegal Acts by Clients 9317Illegal Acts by Clients: Auditing Interpretations of Section 317 318Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained 322The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements 324Service Organizations 9324Service Organizations: Auditing Interpretations of Section 324 325Communicating Internal Control Related Matters Identified in an Audit 9325Communicating Internal Control Related Matters Identified in an Audit: Auditing Interpretations of Section 325 325ACommunicating Internal Control Related Matters Identified in an Audit 9325ACommunicating Internal Control Related Matters Identified in an Audit: Auditing Interpretations of Section 325A 326Audit Evidence 9326Audit Evidence: Auditing Interpretations of Section 326 328Auditing Fair Value Measurements and Disclosures 9328Auditing Fair Value Measurements and Disclosures: Auditing Interpretations of Section 328 329Analytical Procedures 9329Analytical Procedures: Auditing Interpretations of Section 329 330The Confirmation Process 9330The Confirmation Process: Auditing Interpretations of Section 330 331Inventories 9331Inventories: Auditing Interpretations of Section 331 332Auditing Derivative Instruments, Hedging Activities, and Investments in Securities 9332Auditing Derivative Instruments, Hedging Activities, and Investments in Securities: Auditing Interpretations of Section 332 333Management Representations 9333Management Representations: Auditing Interpretations of Section 333 334Related Parties 9334Related Parties: Auditing Interpretations of Section 334 336Using the Work of a Specialist 9336Using the Work of a Specialist: Auditing Interpretations of Section 336 337Inquiry of a Client's Lawyer Concerning Litigation, Claims and Assessments 337AAppendixIllustrative Audit Inquiry Letter to Legal Counsel 337BExhibit IExcerpts from Statement of Financial Accounting Standards No. 5: Accounting for Contingencies 337CExhibit IIAmerican Bar Association Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information 9337Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments: Auditing Interpretations of Section 337 339Audit Documentation 9339Audit Documentation: Auditing Interpretations of Section 339 341The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern 9341The Auditor's Consideration of an Entity's Ability to Continue as a Going Concern: Auditing Interpretations of Section 341 342Auditing Accounting Estimates 9342Auditing Accounting Estimates: Auditing Interpretations of Section 342 350Audit Sampling 9350Audit Sampling: Auditing Interpretations of Section 350 380The Auditor's Communication With Those Charged With Governance 390Consideration of Omitted Procedures After the Report Date AU 400 The First, Second, and Third Standards of Reporting 410Adherence to Generally Accepted Accounting Principles 9410Adherence to Generally Accepted Accounting Principles: Auditing Interpretations of Section 410 411The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles 9411The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles: Auditing Interpretations of Section 411 420Consistency of Application of Generally Accepted Accounting Principles 9420Consistency of Application of Generally Accepted Accounting Principles: Auditing Interpretations of Section 420 431Adequacy of Disclosure in Financial Statements 435Segment Information [Rescinded by the Auditing Standards Board 9435Segment Information: Auditing Interpretations of Section 435 AU 500 The Fourth Standard of Reporting 504Association With Financial Statements 9504Association With Financial Statements: Auditing Interpretations of Section 504 508Reports on Audited Financial Statements 9508Reports on Audited Financial Statements: Auditing Interpretations of Section 508

530Dating of the Independent Auditor's Report 532Restricting the Use of an Auditor's Report 534Reporting on Financial Statements Prepared for Use in Other Countries 9534Reporting on Financial Statements Prepared for Use in Other Countries: Auditing Interpretations of Section 534 543Part of Audit Performed by Other Independent Auditors 9543Part of Audit Performed by Other Independent Auditors: Auditing Interpretations of Section 543 544Lack of Conformity With Generally Accepted Accounting Principles 9544Lack of Conformity With Generally Accepted Accounting Principles: Auditing Interpretations of Section 544 550Other Information in Documents Containing Audited Financial Statements 9550Other Information in Documents Containing Audited Financial Statements: Auditing Interpretations of Section 550 551Reporting on Information Accompanying the Basic Financial Statements in Auditor 552Reporting on Condensed Financial Statements and Selected Financial Data 558Required Supplementary Information 9558Required Supplementary Information: Auditing Interpretations of Section 558 560Subsequent Events 9560Subsequent Events: Auditing Interpretations of Section 560 561Subsequent Discovery of Facts Existing at the Date of the Auditor's Report 9561Subsequent Discovery of Facts Existing of the Date of the Auditor's Report: Auditing Interpretations of Section 561 AU 600 Other Types of Reports 622Engagements to Apply Agreed 9622Engagements to Apply Agreed 623Special Reports 9623Special Reports: Auditing Interpretations of Section 623 625Reports on the Application of Accounting Principles 9625Reports on the Application of Accounting Principles: Auditing Interpretations of Section 625 634Letters for Underwriters and Certain Other Requesting Parties 9634Letters for Underwriters and Certain Other Requesting Parties: Auditing Interpretations of Section 634 9642Reporting on Internal Accounting Control: Auditing Interpretations of SAS No. 30 AU 700 Special Topics 711Filings Under Federal Securities Statutes 9711Filings Under Federal Securities Statutes: Auditing Interpretations of Section 711 722Interim Financial Information 722AInterim Financial Information AU 800 Compliance Auditing 801Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance AU 900 Special Reports of the Committee on Auditing Procedure 901Public WarehousesControls and Auditing Procedures for Goods Held