THE APPLICATION OF GENERALLY ACCEPTED AUDITING STANDARDS AND AUDITING PROCEDURES TO EXAMINATIONS OF NUCLEAR MATERIALS RECORDS AND REPORTS

The Certified Public Accountant or CPA is already involved in nuclear materials examinations. Under government ownership of materials his primary interest has been to see that his client has made adequate provision for the cost of materials used or lost in process. Where possible the CPA may rely on the AEC to supply or verify inventory information. With the advent of private ownership the CPA will have to assume a more active role and, with the help of independent technical personnel, satisfy himself as to the adequacy of his client's nuclear materials accounting system and the reasonableness of his inventory. There are indications that some utilities may prefer to lease nuclear fuels from banks or other lending institutions. Assuming that this can be arranged, the CPA will undoubtedly find himself in the position of reporting to the lessor as well as to his client. This raises a question. If the CPA can render an acceptable opinion on nuclear materials records and reports to owners and lessors might he not also play a role in reporting to the AEC and other agencies charged with the responsibility for nuclear materials safeguards if the scope of his examina- tion Is appropriately modified for this purpose? Any attempt to answer this question must consider the nature of the CPA's audit. This is the subject I will discuss - by reference to the auditing standards and procedures the CPA uses in his examination of financial statements and on which he relies in expressing his opinion on such statements.