Client Memo

Memo To:Clients From:Elizabeth Ellinger, Corbin Matsumoto, Kristina Mercado, Katherine Meyer, and Lori Shaffer Date:7/22/12 Re:SAS 112- Statement of account Standards In May 2006, the AICPA Auditing Stands Board print the SAS-112. In former years there were changes made to the auditing standards that had an rear on the auditing summonss performed on monetary statements. This memo hope respectabley go away clarify the requests for the stark naked standards and how it will impinge on your business. The harm below are specify in SAS-112 and explain how they affect the auditing standards: A manoeuvre deprivation occurs when the design or procedure of a control does non allow management or employees, in the normal bunk of performing their assigned functions, to prevent, or bum around misstatements on a timely basis.

A significant need is a control shortage or a compounding of control shortages that adversely affects the entitys ability to initiate, authorize, record, process or report fiscal data reliably in consent with generally legitimate accounting principles such that there is much than a unlike likelihood that a misstatement of the entitys financial statements more than inconsequent will non be prevented or detected. A substantive weakness is a significant shortage or combination of significant deficits that results in more than an degage chance that a material misstatement of the financial statements will not be prevented or detected. If you have any question the AICPA has resources purchasable on their website to include FAQs documents, and summaries if you need more information. You whitethorn also hint our office for questions as well.If you want to get a full ! essay, order it on our website: OrderEssay.net

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