The Auditing Standards Board has issued Statement on Auditing Standards No. 90, Audit Committee Communications , which amends SAS No. 61, Communication With Audit Committees , and SAS No. 71, Interim Financial Information . The amendment to SAS No. 61 requires an auditor to discuss certain information relating to the auditor's judgments about the quality, not just the acceptability, of the company's accounting principles with the audit committees of SEC clients, and encourages a three-way discussion among the auditor, management and the audit committee. The effective date for this amendment is for audits of financial statements for period sending on or after Dec. 15, 2000.
Earlier application is permitted.
The amendment to SAS No. 71 clarifies that the accountant should communicate to, or be satisfied through discussions with, the audit committee that matters described in SAS No. 61 have been communicated to the audit committee by management when they have been identified in the conduct of interim financial reporting. The effective date for this amendment is for reviews of interim financial information for interim periods ending on or after Mar. 15, 2000. Earlier application is permitted. It also will be printed in an upcoming Journal of Accountancy .