How will AICPA SAS No. 112 Impact Your Next Audit?
This new auditing standard relating to control deficiencies changes the rules on what must be reported as control deficiencies, significant deficiencies, or material weaknesses. The following are examples listed in the appendix to SAS 112.
- Inadequate design of internal control over the preparation of the financial statements being audited.
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- Employees or management who lack the qualifications and training to fulfill their assigned functions; for example, the corporate controller lacks the knowledge and skill to apply GAAP in recording the entity's financial transactions or preparing its financial statements
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- Inadequate design of information technology (IT) general and application controls
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- Inadequate documentation of the components of internal control
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- Inadequate design of monitoring controls that assess the design and operating effectiveness of the entity's internal control over time
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Call Kevin M. Massey, CPA today at 800-404-9758 extension 8110 to find out how NonProfit Technologies, Inc. can help you prepare for your next audit.