Enhanced Communication Project

SAS 112 Regulation

Learning Team B

University of Phoenix

SAS 112

Changes

I am writing to you concerning the new SAS 112 regulations put forth by the AICPA. These new regulations have been generating a lot of questions and I would like these questions addressed immediately. SAS 112 sets standards and guides the process of communicating issues related to an organization’s financial reporting that are discovered in an audit of their financial statements. (Landes, 2007) Enclosed within this packet is an internal memo for our employees, and external memo for our clients and a presentation created so as to communicate these changes and ensure that they are understood accurately.

Importance of Communication

It is very important for our organization to comply with the new standards issued and the only way to make sure we are in compliance is to clearly communicate these changes to those throughout the organization as well as our clients. Communicating these changes efficiently will ensure that our organization is in accordance with current accounting standards and that our reports are uniform throughout the organization. The groups affected by this change must be given all available resources to understand these changes so as to make a smooth transition.

Repercussion of Poor Communication

Without ensuring that our teams and groups that are affected by these changes comply with the new regulations, our organization may encounter problems such as fines for not adhering to the accounting standards, loss of competence, and loss of clients. Poor communication will result in important information not going in the right direction and to the proper authorities, therefore used incorrectly.

Memo

To: Key Clients

From: Learning Team B

CC:

Date: June 7, 2010

Re: SAS 112

This memo is to notify you of new auditing standards and how it will affect you as a client. As a valued client, it is our duty to inform you of any changes that occurs.

Understanding New Audit...