Bracing for SAS 112

Due to the AICPA’s statement on auditing standards No. 112, better known as SAS 112, accounting firms need to now identify and communicate audit clients’ “significant deficiencies” and “material weaknesses” in the same fashion for both public and private companies.

SAS 112 creates a new arena for accounting firms’ audit and attest practices as well as for their clients. Both sides need to thoroughly understand the requirements of SAS 112 to avoid any violations with their next audits, or those under way now.

Effective with audits of financial statements for periods ending on or after Dec. 15, 2006, SAS 112 instructs audit firms on communicating to client management about deficiencies and weaknesses identified during their audits and how to evaluate the severity of those deficiencies.

With more internal control deficiencies now considered severe and the PCAOB’s definitions of “significant deficiency” and “material weakness” now applicable to private companies, you need to attend our teleconference on February 22.

Our expert panel of speakers evaluate every key aspect of SAS 112 and identify the implications for accounting firms and their audit clients.

Our panel includes:

Charles Landes, Vice President of Professional Standards and Services, oversees technical activities of several audit-related panels. He’s a former member of the Auditing Standards Board and former chairman of the Private Companies Practice Section’s peer review committee. Before coming to the AICPA, he was partner-in-charge of accounting and auditing for the Barnes, Denning & Co. CPA firm in Cincinnati.

Connie Wright is managing director for the middle market practice at Accounting Management Solutions Inc., an accounting outsourcing firm based in Waltham, Mass. She works closely with clients to design and implement programs including SAS 112 readiness, Sarbanes-Oxley and M&A due diligence. Connie has more than 25 years of experience in professional services including several years at Deloitte & Touche’s audit practice.

Kim Tredinnick, quality assurance partner, Virchow Krause & Co., Madison, Wis. Kim has served as the firm’s director of accounting and auditing for 27 years.

Jim Smolinkski, quality assurance manager, Virchow Krause & Co., Madison, Wis. Jim has been with the firm for three years and has extensive work with insurance clients.

After listening to the teleconference on CD, you will be equipped to answer questions like these during audits:

• How to evaluate the “potential” magnitude of a control deficiency rather than the actual magnitude
• Whether a single or series of deficiencies rise to the level of “significant” or “material”
• Whether the company has instituted compensating or complementary controls
• What is deemed “material” to the financial statement from both a quantitative and qualitative perspective

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TELECONFERENCE CD
Purchase a CD-ROM of the full conference proceedings (available three weeks after the program).
CPE is not available for CD purchases.