You are a junior accountant at a small accounting firm. A partner of the firm has asked you to communicate the new SAS 112 (Statement of Accounting Standards [Rules auditors have to follow]) regulation to certain groups and how this change would affect them. He has asked you to create and submit a package of materials that includes the following components:
Write a memo to your supervisor describing the challenges of communicating accounting changes effectively with different groups that would be affected by that change. What problems may occur from poor communication?
Look at the following link for information on the impact of SAS 112 for accounting auditors: http://gaqc.aicpa.org/Resources/Impact+of+SAS+112+on+Governmental+Financial+Audits+Conference+Call.htm© BrainMass Inc. brainmass.com June 3, 2020, 9:46 pm ad1c9bdddf
The SAS 112 has superceded SAS 60 and now it has become important to communicate these changes to different person in the company. These changes should be communicated to all accounting and finance staff. In addition, these changes need to be communicated to cashiers, stock keepers, internal auditors and top management. The main points that are to be communicated include the change in terms from reportable condition to significant deficiency and material weakness. In addition, the communication of the auditors to the management and those responsible for governance must be in writing. Further, those specific deficiencies and material weaknesses that remain must be communicated once again. Finally, this communication should be made by the date the report is to be released.
There are significant challenges in communicating these changes to the relevant groups. The SAS 112 requires that the communication be made in writing. In case of writing, it is ...
This solution gives you a detailed discussion of 578 words on SAS 112 and implementing accounting changes in general.