This website uses cookies to ensure you have the best experience. Learn more

New Sas 115 Rules Essay

458 words - 2 pages

Learning Team A Accounting Firm
Memo
To: Accountants
From:
Date: 1/28/2013
Re: New SAS 115 Rules
New SAS 115 Rules
The purpose of this memo is to inform you of the new auditing rules described by SAS 115.
The Accounting Standards Board issued Statement on Accounting Standards (SAS) 115. This regulation is an amendment to and replaces SAS 112. The new regulation kept the same name as the previous regulation. The name of the regulation is Communicating Internal Control Related Matters Identified in an Audit.
Per the American Institute of CPAs website, “SAS 115 requires the auditor to make communications, in writing, to management and those charged with governance regarding significant deficiencies and material ...view middle of the document...


In SAS No.112 material weakness’ definition stated “more than a remote likelihood” that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. This has changed as it distinguishes that a reasonable possibility exists, rather than “more than a remote likelihood”.
Significant Deficiency:
“A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.”
The change in the definition of Significant Deficiency included omission of the following, “…there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected.” This gives the auditor the ability to apply more professional judgment in determining whether the deficiency is a significant deficiency and merits attention by the client’s management or those charged with governance.
How does this change affect you?
You will need to become familiar with and follow the new rules described by SAS 115. There have been changes made on how to communicate your findings during an audit. Communicating, in writing, any material weaknesses or significant deficiencies identified during the audit to management and those charged with governance, is still required by auditor. For more information on SAS 115, please see the AICPA’s website, http://www.aicpa.org. If you have any questions about the new regulation, please let us know and we can schedule a meeting to address any questions related to the new regulation.

Other assignments on New Sas 115 Rules

Marketing Plan Essay

6196 words - 25 pages and for how long, sales conversions, what content works and doesn’t work, etc. The Internet is, by far, the channel most associated with digital marketing, others include wireless text messaging, mobile instant messaging, mobile apps, podcasts, electronic billboards, digital television and radio channels, etc. (SAS Digital Marketing, n.a.). Texting the hoverboard’s new releases (product features), product sales, and where to purchase will be

Marketing Pland For Launching Of New Product

4869 words - 20 pages area. Sales analysis will also be carried out and reviewed regularly. (ANNEXURE, 06) Action: Necessary actions must be taken immediately as per suggestion of MR, FM, SM and PE. When a chosen super core doctors regularly prescribes their gesture is well supported by SAS. When they do not recommend the SMs will visit and communicate for chance of prescription. If not, there will have to search for new super core doctors. When doctors prescribe but

Data Security

8305 words - 34 pages “organizational security policy” as: a set of security rules, procedures, or guidelines imposed (or presumed to be imposed) now and/or in the future by an actual or hypothetical organization in the operational environment [CC 2006]. Basically, a security policy describes: 1) the security properties to be fulfilled by a computing system; 2) the rules according to which the system security state can evolve. An information security policy addresses many

Cognitive Learning Hrm

2357 words - 10 pages learning: the contributing processes and the literatures, Organization Science, 2(1), 88-115. Kelly, K. (1999). New rules for a new economy: 10 radical strategies for a connected world. New York: Viking Press. Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development. New Jersey: Prentice Hall. Kraiger, K., Ford, K.J. & Salas, E. (1993), Application of Cognitive, Skill-Based, and Affective Theories of

Gaap Vs Ifrs

2268 words - 10 pages U.S. GAAP while most European countries followed the IFRS, or acronym for International Financial Reporting Standard. In a sense, the U.S. had their own financial “language”, and in order to communicate with others, they needed to translate to a language they could understand. As globalization and international trade increased, such differences in the financial language caused many difficulties and problems, creating a demand for a new

Mc Donalds

3184 words - 13 pages $2.7 million. Kroc was somewhat of an obsessive individual, fixated with rules, regulations, procedures, and obedience to his strict rules of discipline. Kroc was especially concerned with maintaining McDonald's clean image, as well as that of life in general, and could regularly be seen picking up litter outside of his restaurants in order to maintain the high standard of cleanliness upon which many of his principles were based. During the 1960s

Greek And Roman Comparison

6976 words - 28 pages ., 2007, pg. 114). “Alexander’s conquest of the Persian Empire had immediate effects on trade. In the Persian capitals Alexander had found vast sums of gold, silver, and other treasure. This wealth financed the creation of new cities, the building of roads, and the development of harbors” (McKay et al., 2007, pg. 115). “The Greeks spread their law and methods of transacting business throughout the East. In bazaars, ports, and trading centers

Problems In Developing Small Scale Industries In Bangladesh

3349 words - 14 pages to own the mistakes and correct them. 6. Decision-maker: The main function of a woman entrepreneur is to make decision. She takes various decisions regarding the activities of her enterprise. She decides about the type of business to be done and the way of doing it. A woman entrepreneur must be clear and creative in decision making process. 7. Visionary: A woman entrepreneur is one who incubates new ideas, starts her enterprise with

Euro Crisis

2783 words - 12 pages , Finland and probably Italy changing the terms of the debate to reflect frustration with economies in recession, rising unemployment and hostility to proposed or actual austerity measures. In this scenario, Greece receives an irregular rescue from the European Financial Stability Facility (EFSF) and negotiates a rescheduling of its debt in March. But once its April elections are over, the new Greek government is unable to secure bailout funds

Organizational Theory

3243 words - 13 pages characteristics need to support the firm’s competitive approach” (Daft, 115). All organizations have different intent in business and each must have their own way of operating in order to achieve their purpose. Our book gave examples of the Porter's competitive strategies as well as Miles and Snow's strategy typology. Porter first point he looked at is: the threat of new entrants. When a new company comes into an industry there tends to be pressure on

Hovertec

3159 words - 13 pages loom technicians are qualified maintenance fitters and the highest-paid section of the workforce after supervisors and management but they do not show their specialized skills when company transfer to a new method of assembling looms which allow unskilled labor to be worked. The loom technicians showed their uncooperation with the young unskilled women and they are claimed for their abuse of power from these girls and vandalism from the managers

Similar Documents

Acc 555 Week 2 Hw Essay

1887 words - 8 pages Interpretation 101-3, independence of Emrich would not be considered to be impaired. There would be a violation of SEC rules if the client were publicly held. b. Rule 101 - Independence. No violation. Franz Marteens is not a partner nor is he assigned to the engagement team for the audit client. c. Rule 201 - General Standards. Violation. Interpretation 201-1 states that a member who accepts a professional engagement implies that he or she has

Earnings Management Essay

1083 words - 5 pages management, the committee won’t be able to ask good questions when choosing an auditor or dealing with questions from the auditors. Levitt raises a very valid point which evokes the question: Why don’t we put the same restrictions as auditors on the people who pick them? According to SAS No. 1, auditors must be completely free from any bias towards the company it is auditing. They should have absolutely no interest in the company aside from

Tinga Essay

2471 words - 10 pages power of suppliers b) the bargaining power of customers c) the existing rivalries within the local industry d) the threat of new entrants into the local industry 12) In the ‘Loyalty New Zealand’ case study, the type of business intelligence software used is: a) SAS b) SAP c) SPSS d) Oracle 13) The database management system (DBMS) is characterised best as: a) software and hardware that directly manages and protects the stored data b

Design User Awareness On Garbage Sorting At Home

2484 words - 10 pages HOME ABSTRACT Sorting garbage is a hot topic in our country as it become compulsory to people to sort their garbage at home started from 1 September 2015. Garbage sorting is the way to reduce the amount of solid waste to be compose at land fill and take so many year to decompose; because it contributes to environmental protection. Therefore, it is important for us to support our government and give new ideas in order to help Malaysia