Memo for Accountants

Memorandum To: Accountants From: junior accountant Date: October 22, 2012 Subject: SAS single hundred fifteen-Statement on Accounting regulations SAS cxv was issued by the Auditing Standards dining table to provide counselor to attendants on what should be communicated to management and those in charge of governance within an organization. The SAS cxv requires the auditor to dupe communications, in writing, to management regarding imperative deficiencies and temporal helplessness in internal bears that argon noted in audit 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 consider this department in 3 various ways: 1. It defines three categories of control deficiencies that may be set during the external audit of the financial statements: control deficiencies, significant deficienci es 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 supercharged with governance any significant deficiencies or material weaknesses that were identified. SAS no

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 are significant deficiencies or material weaknesses to management and those charged with governance. The break differences between ! SAS No. 115 and SAS No. 112 are in the expositions 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 extremity to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay