A new auditing interpretation from the AICPA Auditing Standards Board (ASB) addresses how the auditor might report when the audit is conducted in accordance with both generally accepted auditing standards (GAAS) and new and revised auditor-reporting International Standards on Auditing (ISAs), and the new and revised ISAs have been adopted.
In January 2015, the International Auditing and Assurance Standards Board (IAASB) issued new and revised auditor-reporting ISAs that created new guidance for auditors when reporting on audited financial statements.
When the auditor intends to refer to both GAAS and the new and revised auditor-reporting ISAs, the implications of the new and revised auditor-reporting ISAs for the auditor's report when reporting on an audit conducted in accordance with both sets of standards are addressed in Interpretation No. 3 to AU-C Section 700, Forming an Opinion and Reporting on Financial Statements.
Interpretation No. 3 is titled "Reporting on Audits Conducted in Accordance With Auditing Standards Generally Accepted in the United States of America and International Standards on Auditing." According to it, the auditor's report may refer to the ISAs in addition to GAAS, but the auditor should do so only when he or she has conducted an audit in accordance with both GAAS and the ISAs in their entirety. When the auditor uses the layout and wording specified by GAAS, the interpretation provides guidance on the minimum elements that need to be included in the auditor's report when the auditor intends to refer to both GAAS and the new and revised auditor-reporting ISAs.