The Auditing Standards Board has issued Interpretation no. 1, “Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act,” of AT section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements (AICPA, Professional Standards, vol. 1). The interpretation addresses whether the auditor can meet the requirement for an integrated audit (an examination of internal control over financial reporting that is integrated with an audit of financial statements) when an insured depository institution does not prepare financial statements for external distribution, and, if so, how the auditor can report on the effectiveness of the institution’s internal control over financial reporting. The interpretation is available at on the AICPA website.
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