Enhanced Communications Memo

Enhanced Formal Communication

COM/530

Research SAS 112 on accounting auditors from the American Institute of CPAs (AICPA) website. Research SAS 115 on accounting auditors from the AICPA website. Write a brief, 1- to 2-page internal memo for other accountants at the firm. Write a 1- to 2-page memo to your supervisor in the conclusion to your report, 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? Click the Assignment Files tab to submit your assignment.

In conclusion of researching SAS 112 and SAS 115, the American Institute of Certified Public Accountant Board (AICPB) established these guidelines to define the definition of material weakness and significant deficiencies with standards to communicating matters regarding the internal controls of the organization (AICPA, 2014).

As stated in SAS 112, auditors are required to report their evaluation of any material weakness or significant deficiencies of internal control and the severity of those deficiencies (AICPA, 2014). SAS 115 reports the following changes in communication requirements, while auditors are still required to report to management and those that govern, such as board members, any material weakness or significant deficiencies of internal control and the severity of those deficiencies; auditors must disclaim in their statement that their consideration of internal control was not meant to detect all deficiencies, but to report on the severity of those found. The other change is within its illustrative report. The report now must list any material weaknesses first with specific examples the auditor used to make his or her conclusion on the weakness. Significant deficiencies are then listed with its own specific examples.

The communication of reporting material weakness or significant deficiencies of internal controls are meant for management...