Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AU-C 585 Consideration of Omitted Procedures after the Report Release Date

AU-C Original Pronouncement

Source

Statement on Auditing Standards (SAS) 122.

Definition of Term

Source: AU-C 585.05

1. Omitted procedure. An auditing procedure that the auditor considered necessary in the circumstances existing at the time of the audit of the financial statements but which was not performed.

Overview

Professional Disagreements

This section does not apply to professional disagreements about whether an auditing procedure is necessary in a specific engagement under circumstances existing at the time of the audit. For example, a peer reviewer may suggest that an auditing procedure was necessary (e.g., confirming additional receivables), and the auditor may disagree.

The alleged omitted auditing procedure might be one that professionals could reasonably disagree about (e.g., judgments about materiality). In these circumstances, every effort should be made to convince the reviewer that the auditor's judgment was appropriate.

No Substitute for Omitted Procedures

The omitted procedure may be one for which there is no alternative (e.g., making or observing some inventory counts), or the omission may be the failure to apply any auditing procedures to obtain evidential matter for a significant audit objective (e.g., accepting management representations and not testing percentage of completion on a material construction contract). In these circumstances, the auditor cannot maintain that ...