1. SAS (Nonissuers) and PCAOB AS

The auditor should:

• Use professional judgment in applying the SAS or PCAOB AS to a particular engagement.

• Be prepared to justify any departures from presumptively mandatory requirements.

Specific language is used within the standards to clarify the auditor's level of responsibility:

• "Must" or "is required" indicates an unconditional requirement, which must be followed in all cases in which the requirement is relevant.

• "Should" indicates a presumptively mandatory requirement, which must be followed in all cases in which the requirement is relevant, except in rare circumstances when departure from the requirement is permitted if there is appropriate justification, performance of sufficient alternative procedures, and thorough documentation.

• "May," "might," and "could" indicate explanatory material that does not impose a professional requirement for performance.

2. Interpretive publications

Interpretive publications are recommendations regarding how SASs should be applied in specific situations. They are not considered to be auditing standards.

The auditor should:

• Consider the guidance provided by these publications in performing an audit.

• Be able to explain any departures, and how compliance with standards was otherwise achieved.

Examples include: Auditing interpretations of GMS, exhibits to GMS, auditing guidance provide in AICPA Audit and Accounting Guides, and AICPA Auditing Statements of Position (SOP).

3. Other auditing publications

Other auditing publications have no authoritative status but may be helpful to the auditor.

The auditor should:

• Consider the guidance provided by these publications in performing an audit.

• Be able to explain any departures, and how compliance with standards was otherwise achieved.

Examples include: Auditing articles in the journal of Accountancy (or other professional journal), auditing articles in the AICPA CPA Letter, continuing professional education materials, textbooks, and other auditing publications.