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

AU-C 915 Reports on Application of Requirements of an Applicable Financial Reporting Framework

AU-C Original Pronouncements

Sources

Statements on Auditing Standards (SASs) 122, 123, and 125.

Applicability

Section 915 applies to providing written advice:

1. On the application of accounting principles to specified transactions (completed or proposed) involving facts and circumstances of a specific entity
2. On the type of report that may be rendered on a specific entity's financial statements

   (AU-C 915.01)

The Section applies to these situations whether the advice is provided as part of a proposal to obtain a new client or as a separate engagement.

Section 915 applies to oral advice in the following circumstances:

1. The reporting accountant concludes the advice is intended to be used by a principal as an important factor in reaching a decision; and
2. The advice relates to the application of accounting principles to a specific transaction or the type of opinion that may be rendered on a specific entity's financial statements.

   (AU-C 915.02)

Section 915 does not apply to:

1. A continuing accountant engaged to report on the financial statements of a specific entity
2. An engagement to assist in litigation involving accounting matters or provide expert testimony in litigation (i.e., litigation service engagements)
3. Advice provided to another accountant in public practice
4. Position papers on accounting principles or the type of opinion that may be rendered, including newsletters, articles, ...