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Accounting Auditor from American Institutes of CPAs

You are a junior accountant at a small accounting firm. A partner of the firm has asked you to communicate the new Statement of Accounting Standards (SAS 115) regulation--rules auditors have to follow--to certain groups and to explain how this change would affect these groups. The partner has asked you to create and submit a package of materials
that includes the following components:

Research SAS 115 on accounting auditors from the American Institute of CPAs (AICPA) website.

Write a brief, 1 page internal memo for other accountants at the firm.

Solution Preview

In a move to improve communication, SAS No. 115 replaced the Statement on Auditing Standards (SAS) No. 112. The internal controls and control deficiencies are used to provide assurances for reliability of financial reporting, effectiveness and efficiency of operations, and compliance with laws and regulations.(Plessner, 2010) Control deficiencies exist when the design or operation of a control does not allow management or employees to detect, prevent, or correct misstatements in financial statements. Auditors are not required to ...

Solution Summary

Accounting auditor from American Institutes of CPAs is examined.