Current through Register Vol. 40, No. 6, March 31, 2022
General Standards. A registrant shall
comply with the following general standards as interpreted by bodies designated
by Council of the American Institute of Certified Public Accountants and must
justify any departures therefrom.
Professional Competence. He shall undertake only those engagements which he or
his firm can reasonably expect to complete with professional
(b) Due Professional
Care. He shall exercise due professional care in the performance of an
(c) Planning and
Supervision. He shall adequately plan and supervise an engagement.
(d) Sufficient Relevant Data. He shall obtain
sufficient relevant data to afford a reasonable basis for conclusions or
recommendations in relation to an engagement.
(e) Forecasts. He shall not permit his name
to be used in conjunction with any forecast of future transactions in a manner
which may lead to the belief that he vouches for the achievability of the
Standards. A registrant shall not permit his name to be associated with
financial statements in such a manner as to imply that he is acting as an
independent public accountant unless he has complied with the applicable
generally accepted auditing standards promulgated by the American Institute of
Certified Public Accountants. Statements on auditing standards issued by the
Institute's Auditing Standards Executive Committee are, for the purposes of
this rule, considered to be interpretations of the generally accepted auditing
standards, and departures from such statements must be justified by those who
do not follow them.
Principles. A registrant shall not express an opinion that financial statements
are presented in conformity with generally accepted accounting principles if
such statements contain any departure from an accounting principle promulgated
by the body designated by Council of the American Institute of Certified Public
Accountants to establish such principles which has a material effect of the
statements taken as a whole, unless he can demonstrate that due to unusual
circumstances the financial statements would otherwise have been misleading. In
such cases his report must describe the departure, the approximate effects
thereof, if practicable, and the reasons why compliance with the principle
would result in a misleading statement.
Other Technical Standards. A registrant
shall comply with other technical standards promulgated by bodies designated by
Council of the American Institute of Certified Public Accountants to establish
such standards, and departures therefrom must be justified by those who do not
Author: Alabama Board of Public