Sequence Inc. Fraud Files Blog

Announced by the AICPA (American Institute of CPAs):

ASB Issues SAS No. 114, The Auditor’s Communication with Those Charged with Governance

The Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) no. 114, The Auditor’s Communication With Those Charged With Governance, which replaces SAS no. 61, Communication With Audit Committees, as amended. The new SAS establishes standards and provides guidance to an auditor on matters to be communicated with those charged with governance. SAS No. 114 applies to audits of the financial statements of all nonissuers and establishes a requirement for the auditor to communicate with those charged with governance certain significant matters related to the audit, including the auditor’s responsibilities under GAAS, an overview of the planned scope and timing of the audit, and significant findings from the audit. The SAS is effective for periods beginning on or after December 15, 2006. It is summarized here.