Memo for Accountants

Memorandum To: Accountants From: junior accountant Date: October 22, 2012 Subject: SAS oneness hundred fifteen-Statement on Accounting standardizeds SAS cxv was issued by the Auditing Standards carte du jour to provide direction to attendants on what should be communicated to management and those in charge of governance within an organization. The SAS cxv requires the analyzeor to induce communications, in writing, to management regarding imperative deficiencies and temporal helplessness in internecine operates that argon noted in size up reports. It clarifies standards and provides guidance on communicating matters related to an entitys internal control over financial reporting determine in an audit of financial statements. The new SAS none 115 is going to displace this department in lead various ways: 1. It defines three categories of control deficiencies that may be set during the external audit of the financial statements: control deficiencies, signi ficant deficiencies and actual weakness. 2. It provides guidance on evaluating the severity of the deficiencies identified. 3. It requires the auditor to communicate in writing to managements and those aerated with governance any significant deficiencies or material weaknesses that were identified. SAS none

115 includes much of what was outlined in SAS No. 112 as it provides guidance to enhance the auditors ability to evaluate deficiencies in internal control identified during an audit, and then communicate those deficiencies that the auditor believes be significant deficiencies or material weaknesses to management and those c harged with governance. The learn differen! ces between SAS No. 115 and SAS No. 112 are in the explanations of material weaknesses and significant deficiencies so they are aline with the PCAOB Auditing Standard No. 5, with the most significant change creation to the definition of significant deficiencies. Additional guidance for making the tendency as to whether a deficiency is a material weakness or...If you take to get a full essay, order it on our website: BestEssayCheap.com

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