Memo

Memo To:Clients From: report Firm CC:CPAs Date: [ 4/13/2011 ] Re:SAS 112- Statement of Accounting Standards In the past long time there defecate been few changes to the auditing standards that leave have an impression on the auditing procedures performed on your financial statements. The advanced standard of changes is draw in SAS 112. The new standard SAS 112 is effective now. This memo depart describe some of the requirements of the new standard and how it will rival your business. The term infra are defined in SAS 112 and explains how they light upon the auditing standards: * A perplex want exists when the design or operating theater of a avow does non allow management or employees, in the traffic pattern course of acting their assigned functions, to hold or observe misstatements on a timely basis. * A deficiency in design exists when a reassure incumbent to meet the ascendency objective is missing, or the control is non pro perly knowing so that even if it operates as designed, the control objective is not always met. * A deficiency in operation exists when a properly designed control does not operate as designed or the person performing the control does not possess the necessary authority or qualifications to perform the control effectively.

* A meaningful deficiency is a control deficiency or a combination of control deficiencies that adversely affects the entitys ability to initiate, authorize, record, process or traverse financial selective information reliably in accordance with broadly accepted business relati onship principles such that there is much t! han a contrary likelihood that a misstatement of the entitys financial statements that is more than inconsequential will not be prevented or detected. * A material flunk is a significant deficiency or combination of significant deficiencies that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected. ( Rebecca Otto, 2007)...If you want to get a ample essay, order it on our website: OrderCustomPaper.com

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