CCH Learning Center

SAS 112 on Internal Control, SAS 114 on Governance, and SAS 113, Technical Corrections

This course discusses three recently-released standards that are not a part of the Risk Assessment group of standards. It digests the two new SASs that affect auditors' communication with their clients and one SAS that provides largely "technical corrections" to the existing standards.

• SAS 112, Communicating Internal Control Related Matters Identified in an Audit, is one of the more controversial and misunderstood of the recent standards. Among the issues most discussed in the profession are what constitutes a significant deficiency or a material weakness, as well as how and when to report control related matters.
• SAS 113, Omnibus Statement on Auditing Standards- 2006, contains amendments that primarily revise certain terminology throughout existing auditing standards to conform it to newly adopted terms in recently-released standards. It also provides a link between the consideration of fraud and the auditor's risk assessment and the procedures to respond to the risk assessment, and it changes the convention for dating the representation letter.
• SAS 114, The Auditor's Communication With Those Charged With Governance, establishes standards and provides guidance on matters to be communicated with those charged with governance.