Diana- I think your a bit confused on a few things, let me try to clear it up.
10 GAAS Standards-Not GAAP are- (General, Fieldwork and Reporting) -TIP PIE ACDO (See Below) still apply to public (issuers). The clarified standards changed the modification of the report for non-issuers by laying out changes to the audit report now called unmodified instead of unqualified (public still uses the old format)
Clarity around this is simply that the responsibilities of an auditor and management are stated quite clearly to simplify any possible disputes that could come about due to who's responsibility is who's during the audit.
Non-Issuers use this new format for audit opinions:
Intro- states what the audit is performing i.e income statement, b/s cf etc.
Management Resp (F/S and Design, Implementation and Maintenance of I/C)
Auditor Resp- obtain reasonable assurance that the f/s dont contain a material misstatement
Opinion
** Also note that when qualifying an opinion, you now add a paragraph called the “Basis for Qualified Opinion” before the opinion paragraph —you do the same for adverse or disclaimer as well….
Also there is now an emphasis of a matter paragraph and other matter paragraph instead of explanatory paragraph for non-issuers
10 GAAS standards are still possibility testable since they relate to public:
Training and Proficiency
Independence
Professional Care
Planning and Supervision
Internal Control
Evidence
A=Accounting is GAAP
C= Consistency (Implied)
D= Disclosure (Implied)
O= Opinion
.