Discussion:SAS112 and compilations
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Accounting Questions --> SAS112 and compilations
AKaccountess (talk|edits) said: | 3 February 2007 |
| What kind of effect do you think SAS112 will have on compilations particularly in regards to the control deficiency of inadequate design of internal control over the preparation of the financial statements being prepared? | |
| February 3, 2007 | |
| I guess you're asking about any impact that might occur down the line since SAS 112 is an auditing standard and does not apply to compilations. Generally speaking, CPAs have had to take more responsibilities for things like fraud and communicating certain findings to clients. If you are wondering whether CPAs will eventually be required to notify clients about control deficiencies during a compilation, I would not be surprised if that happens. In my practice, I tend to be proactive, so I already inform my clients when I see procedures that can and should be improved.
| |
AKaccountess (talk|edits) said: | 3 February 2007 |
| It adds to my thought process. Yes we do audits and we realize this is an audit standard, and we too as part of any engagement are proactive on advice to clients when we become aware of an operating/control deficiency. Value added service. It adds weighted consideration to Ethics 101 on independance and whether or not management has the compentancy to take responsibility for reveiwing, approving and authorizing proposed adjustments and the final financial statements. I am wondering how other accountants are viewing all of this and how they believe it will impact actual implementations. We are not one of the big 6..4..3..2..??? firms or a large regional or even a large local firm, so there aren't alot of heads here in the offices to knock around issues..I appreciate your comments. | |
To join in on this discussion, you must first
log in.
