Memo for Accountants

Memorandum
To: Accountants
From: junior accountant
Date: October 22, 2012
Subject: SAS one hundred fifteen-Statement on Accounting Standards

SAS cxv was issued by the Auditing Standards Board to provide guidance 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 make communications, in writing, to management regarding imperative deficiencies and temporal helplessness in internal controls 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 affect this department in three 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 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 charged 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 key differences between SAS No. 115 and SAS No. 112 are in the definitions 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 want to get a full essay, order it on our website: Orderessay



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