SAS 112 - Don't Get Stunned When the Audit Report Comes
Assessment and Reporting under SAS 112 and the Impact on Nonprofit Organizations
Wednesday, May 14, 2008
8:30 am - 3:00 pm
Martins Crosswinds
7400 Greenway Center Dr
Greenbelt, MD 20770
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CPE Credit Available
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There is much confusion over what SAS does and does not require, and, now and again the requirements change. Effective for audits for periods ending after December 15, 2006, SAS 112 is one such change and supersedes SAS 60 and "raises the bar" by mandating a structured approach for evaluating deficiencies in internal controls identified during an organization's audit. This new standard requires auditors of nonprofit companies to deliver within sixty days of the report release date, a written report to management and governance describing significant deficiencies and material weaknesses identified during the audit. SAS 112, combined with the requirements of the recently issued risk assessment standards, is increasing the quantity and type of control deficiencies that must be communicated back to organizations and requires significant judgment from the audit manager/partner in each 2006 audit and for every year thereafter.
Many nonprofit organizations have experienced their first audit under SAS 112 and have been "stunned" by the results. Even though an organization's policies have not changed, the accounting rules have. What was once acceptable, is now listed as a deficiency. An organization's audit/finance committee and the executive director need to understand that the increased reporting does not mean that the finance director has suddenly stopped doing his or her job.
This full-day course focuses on applying SAS 112's technical requirements by taking participants through the various steps in the new decision-making process using nonprofit-specific examples. The course applies to those that are involved in the auditing of nonprofit organizations as well as those who are responsible for the day-to-day financial activities of a nonprofit organization and those who are involved in the governance of nonprofit organizations.
Objectives:
Upon completion of this course, participants will be able to:
Identify situations in nonprofit organizations when a control deficiency exists.
Distinguish between the various types of control deficiencies.
Evaluate the "potential" magnitude of a control deficiency rather than the actual magnitude.
Determine whether a single or series of deficiencies rise to the level of "significant" or "material"
Determine how compensating controls can mitigate a control deficiency
For those doing the auditing, learn how and when to report control deficiencies.
For those working for or governing a nonprofit, learn when to expect a control deficiency and how to interpret the auditor's report.
Suggest improvement in the nonprofit's internal controls.
Major topics:
History of what lead to the adoption of SAS 112
Definitions of examples of various types of control deficiencies specific to nonprofit organizations.
What nonprofits can do to adopt new practices to avoid reportable control deficiencies?
Communication to the management and governance bodies of nonprofit organizations to ensure that reports are used to move the organization forward and not as a tool for punishment.
Who will benefit:
Independent auditors and managers, financial professionals working for nonprofit organization, persons involved in financial governance of nonprofit organizations.
Trainers:Harvey Metro; Metro, Metro & Associates, Pa
Anthony Cuozzo, CPA; Councilor, Buchanan & Mitchell, PC
James Larson, Gelman, Rosenberg
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