SAS Nos. 104-111 for Non-Profits: Mastering the Risk Assessment Standards

Evaluating Unique Risks, Designing Effective Internal Controls, and Assuring Compliance

Recording of a 100-minute CPE webinar with Q&A


Conducted on Thursday, March 19, 2009

Program Materials

This seminar will provide a detailed examination of how SAS 104-111 reshapes auditing firms' examinations of non-profit organizations and will offer approaches to deal with the most frequently faced challenges in analyzing their special risks and controls.

Description

The AICPA Auditing Standards Board's Statements on Auditing Standards Nos. 104 through 111 pose special challenges for auditors and their non-profit clients. Auditors continue to wrestle with demands to attain a new understanding of non-profits' environments and internal controls.

Under SAS Nos. 104-111, they must examine the bigger picture in order to meaningfully assess risk of material misstatements on non-profits' financial statements. Generic audits and basic understandings of only internal controls will no longer pass muster.

Specific examples of how non-profit auditors are improving their grasp of the client's environment and recognizing the major risks faced, and helping develop documentation and controls policies, are vital to helping meet the intent as well as the letter of SAS Nos. 104-111.

Listen as our panel of veteran non-profit accounting specialists helps your audit staff understand how SAS Nos. 104-111 applies to examinations of non-profits, and gives real-world experiences.

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Outline

  1. Review Of Key Terms Of SAS 104-111 And Background History
    1. Evolution of emphasis on risk-based audits
      1. Principal objectives of SAS 104-111
        1. More comprehensive understanding of entity as whole
        2. Based on that understanding, auditor can comprehensively assess where risks lie
    2. Discussion of all key terms of SAS 104-111
      1. SAS 104
        1. Expanding on definition of reasonable assurance
      2. SAS 105
        1. Expanding auditor’s responsibility to gain understanding of internal controls
      3. SAS 106
        1. Emphasize duty to gain sufficient audit evidence
      4. SAS 107
        1. Incorporating assessment of risk into financial statement audit
      5. SAS 108
        1. States of planning, conducting the audit
      6. SAS 109
        1. Understanding the entity and its environment, including internal controls
        2. Evaluating entity, its industry, financial performance, other factors
        3. Five components of internal controls
      7. SAS 110
        1. Obtaining sufficient audit evidence through application of substantive audit procedures
      8. SAS 111
        1. Application of sampling procedures to controls tests
  2. SAS 104-111’s Special Impacts On Non-Profits
    1. Understanding non-profits environments and internal controls
    2. Risk of material misstatements specifically on non-profits’ financial statements
    3. Developing documentation and control policies
    4. Educating the audit committee
  3. Experiences In Transition to SAS 104-111
    1. Common surprises and bumps in road
    2. Certain auditor comments, insistence on documentation of certain controls
    3. Why certain longstanding client activities must be listed in management letter
    4. Citing activities that can’t be proved in management letter
    5. Related issuance of SAS 112 letters
      1. Due to more in-depth analysis of controls
    6. Auditors having to undertake certain activities during audits that clients will never see

Benefits

The panel will give you a more strategic understanding of the standards and of what you'll need to do with respect to:

  • Enhancing your understanding of the non-profit's business environment, special risks and internal controls.
  • Analyzing whether to request new information, documentation and adjustments to financial statements from non-profit clients.
  • Rigorously assessing risks of material misstatements in financial statements -- and adjusting audit procedures accordingly.
  • Documenting your own understanding of the client's internal control system.

Faculty

Chris Rouse
Chris Rouse

Principal
Windham Brannon

He has more than 30 years of experience and serves on the AICPA Technical Issues Committee. He also is a firmwide audit...  |  Read More

James Kraft
James Kraft
Partner
Lindquist von Husen & Joyce

He has been a firm partner since 1989 and worked in the accounting profession since 1977. He has specialized in...  |  Read More

Harvey Metro
Harvey Metro
Founding Partner
Metro Metro & Assoc.

He has worked with hundreds of non-profit clients at the firm. Before going into public accounting, he served as...  |  Read More

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On-Demand Seminar Audio

$147