In general, the auditor should consider the CONTROLS that pertain to the entity’s objective of preparing financial statements for external use that are presented fairly in conformity with GENERALLY accepted ACCOUNTING principles (GAAP) or some other comprehensive basis of accounting other than GAAP (OCBOA).

The controls relating to operations and compliance objectives MAY be relevant to a financial STATEMENT audit if they pertain to data the auditor evaluates or uses. For example, the auditor may consider the controls relevant to nonfinancial data (such as production statistics) used in analytical procedures.

In general, the auditor should consider the controls that pertain to the entity’s objective of preparing financial statements for external use that are presented fairly in conformity with generally accepted accounting principles (GAAP) or some other comprehensive basis of accounting other than GAAP (OCBOA).

The controls relating to operations and compliance objectives may be relevant to a financial statement audit if they pertain to data the auditor evaluates or uses. For example, the auditor may consider the controls relevant to nonfinancial data (such as production statistics) used in analytical procedures.