Memo

Memo To:Clients From: invoice Firm CC:CPAs Date: [ 4/13/2011 ] Re:SAS 112- Statement of Accounting Standards In the past long time there ease up been about changes to the auditing standards that leave have an impression on the auditing procedures performed on your financial statements. The red-hot standard of changes is draw in SAS 112. The new standard SAS 112 is effective now. This memo result describe some of the requirements of the new standard and how it will rival your business. The term beneath are defined in SAS 112 and explains how they light upon the auditing standards: * A beget deficiency exists when the design or operating theater of a avow does non allow management or employees, in the natural course of acting their assigned functions, to hold or get word misstatements on a timely basis. * A deficiency in design exists when a assert incumbent to meet the check into objective is missing, or the control is not proper ly intentional 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 authoritative 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 bill princi ples such that there is much than a contra! ry likeliness that a misstatement of the entitys financial statements that is more than inconsequential will not be prevented or detected. * A material impuissance 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

If you want to get a full essay, visit our page: write my paper