Enhanced Formal Communication to Supervisor

MEMORANDUM

TO: Supervisor

FROM: Learning Team C

DATE: April 30, 2012

SUBJECT: Challenge of Communicating Accounting Changes Effectively with Different Groups

CC: Partners

American Institute for CPAs (AICPA) has implemented a new auditing standard. Our firm needs to communicate the changes from Standards on Auditing Statement (SAS) No. 115 to our various stakeholders, including internal auditors and key clients. As we enforce the new policy changes for the auditors, we may encounter some challenges. We can take some steps to ease these challenges.

We are implementing the following changes:

1. New definitions of significant deficiencies and material weaknesses.

2. Practitioners must communicate, in writing, significant deficiencies and material weaknesses identified during an audit.

Facing challenges. The best method to face these challenges is through the process of communication. Sense a communication need, define the situation, consider the possible communication strategies, select a course of action, and compose the message in the most effective way to face a challenge. Sensing a need for communication acknowledges that we should communicate the changes throughout the company. Defining the situation means you should explain the new policies clearly and effectively without interjecting opinions or conjecture in the communication. Considering the possible communication strategies helps find the proper method to relay the new changes, for example meetings, e-mail, and memos. Selecting a course of action is how we will implement the change. Composing the message is most important. The communication should be factual, concise, and clear.

These guidelines formulate a method to overcome any challenge that may occur. If you follow these steps any challenge should be easy to overcome.

Communicating changes. The new change in the auditors’ policy is important. We should communicate these policies carefully...