Latest Audit Developments - SAS 112

On Tuesday, September 25, 2007, Rick Aselage, Partner in RubinBrown's Assurance Services Department, spoke to nfpFMA members about the ways SAS 112 will affect our forthcoming audits.

SAS 112, "Communicating Internal Control Related Matters Identified in an Audit," focuses on the potential for, not the existence of, an actual misstatement. It breaks internal control deficiences down into three categories: Control deficiency, Significant deficiency, and Material weakness.

The impact of SAS 112 on our audits will be twofold:
1. We can expect that auditors will identify and report more internal control deficiencies.
2. We can expect more questions from auditors regarding internal controls and we will be responsible for addressing "how a control deficiency is not a significant deficiency or material weakness."