• Evaluating deficiencies for significance or materiality
• Aggregating deficiencies
• Assessing a client’s ability to prepare financial statements
• Writing clearly worded comments

SAS 112, Communicating Internal Control Related Matters Identified in an Audit, establishes standards for making internal control communications to your clients. This new standard makes significant changes to the communication requirements, including revising the underlying definitions and requiring you to communicate in writing all significant deficiencies or material weaknesses that you identify. Those changes are now effective!

PPC’s Guide to Internal Control Communications – Applying SAS No. 112 will help you eliminate the confusion and accurately:

• Evaluate, aggregate, and classify identified internal control deficiencies
• Prepare internal control communications

This new Guide will provide:

• Hundreds of illustrative communication examples covering the internal control deficiencies you are likely to encounter in your audit engagements
• Comments categorized by audit area to help you find just the right one
• An index of comments to help you identify potential internal control comments during your audit
• Guidance on classifying those deficiencies as control deficiencies, significant deficiencies, or material weaknesses
• Guidance on aggregating the deficiencies to see if they rise to the level of something you must communicate
• Practice aids to help with classification and aggregation
• Guidance on the form of the report, not just the comments that are included
• Help with specified issues, such as whether preparing financial statements for your clients always results in a reportable control deficiency