TO: Clients

FROM: Learning Team A

DATE: 8/2/2010

RE: SAS 115 (Statement of Accounting Standards)

This memo is to inform on the changes that are going to occur to the SAS. As of December 15, 2009 American Institute of Certified Public Accountants is changing the SAS 115, Communicating Internal Control Related Matters Identified in an Audit, and will replace it with SAS 112, which will be effective for organizations.

The primary purpose for AICPA revising the definition was that is the thought of the language was unclear in significant deficiency material weakness, and control deficiency.

What’s changing as a result of SAS No. 115?

SAS 115 includes much of what was outlined in SAS 112 as it provides guidance to enhance the auditor's ability to evaluate deficiencies in internal control identified during an audit, and then communicate those deficiencies that the auditor believes are significant deficiencies or material weaknesses to management and those charged with governance.

The changes between SAS 112 and 115 are simply wording, there is nothing your organization will need to implement or change based on this new standard. These changes should be aligned with the PCAOB Auditing Standard No. 5, with the most significant change being to the definition of significant deficiencies. With Additional guidance also has been updated.

With the new regulations, we ensure that we have established procedures and protocols to remain in compliance and in order to maintain its tax deferred status. We also ensure that we our in compliance in written plans, universal eligibility, contribution limit, nondiscrimination rules and distributions.


From SAS 112 to SAS 115—What’s the Difference? Retrieved from http://www.eidebailly.com/news/publications/archive/Non-Profit_Feb_10.pdf