Client Memo

In: Business and Management

Submitted By eahweekly
Words 521
Pages 3
SAS 115 Changes and Benefits

April 23, 2012

SAS 115 Changes and Benefits
TO: Valued Clients
DATE: April 23, 2012 SUBJECT: SAS 115 Changes and Benefits CC: Supervisor Dear Valued Client,
In a recent move toward improving company communications pertaining to internal control matters it has been brought to our attention in this effort to provide the best service for clients Statement on Auditing Standards (SAS) No. 112 has been removed and replaced with SAS 115, which is in effect for audits being performed on or after December 15, 2009.
Internal control is the method put into place by a company to be sure the integrity of financial and accounting information, meets operational, profitability targets, and transmit management policies throughout the organization (Investopedia).
Control deficiency is the result of the design or operation of the control not allowing management, employees to prevent, or correct financial misstatements (Ken Plessner CPA).
Material weakness occurs with the possibility of the material misstatement not being prevented, detected, and corrected on a timely basis (Ken Plessner CPA).
Significant deficiency requires attention by those in charge but is not as severe as material weakness (Ken Plessner CPA).
SAS 115 allows the practitioners to more effectively use their judgment when they become aware of and determine the severity of the deficiency found. If it is determined the deficiency is severe enough, they will report it in writing, to management, and administration (Ken Plessner CPA).
Benefits of the changes
As with SAS 112, SAS 115 promotes clients understanding of their organization’s internal control weaknesses, which can benefit them in several ways, including (Thomas J. Ryan): * Written communication clarifies identified deficiencies determined to be…...

Similar Documents

Client Memo to Monitor Company

...values. While all three initiatives have the same goal of promoting a more diverse workplace at Monitor, they approach it differently. The Advisor Network and the women’s seminar group are focused on personal development, and they strive to be a resource for Monitor employees. The Diversity Network and the Harassment Training are focused on institutional development; they were implemented to help the organization advance its diversity efforts. However, the Harassment Training can also be seen as personal development for those employees who may have suffered from gender-based insensitivity in the past. Another important factor in relation to the training is that sexual harassment was not just known to occur internally, but also externally by clients. Monitor Company consists of different types of organizational structures. One apparent type is an informal structure, where “formal roles and relationships are not the only basis of social interaction.” (Nohria, Nitin. Note on Organization Structure. Case Study. Boston. Harvard Business School, 1991. Web. 10 July 2012.) The relationships formed in the Advisor Network and the women seminars develop based on friendship, advice, and shared backgrounds and interests. These are important relations that help an organization’s effectiveness. Management must be mindful of the informal network and all employees should utilize it. There are both strengths and weaknesses in Monitor’s current initiatives. The current program has......

Words: 1094 - Pages: 5


...Memo To: Clients From: CC: Firm CPA’s Date: Re: SAS 112- Statement of Accounting Standards In May of 2006, the AICPA Auditing Stands Board published the SAS-112 in previous years there where changes made to the auditing standards that had an effect on the auditing procedures performed on financial statements. The new standards of changes are described in SAS-112. This memo will clarify the requirements of the new standards and how it will affect your business.   The terms below are defined in SAS-112 and explain how they affect the auditing standards: * A control deficiency exists when the design or procedure of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. * A deficiency in design exists when a control necessary to meet the control objective is missing, or the control is not properly designed so that even if it operates as designed, the control objective is not always met. * A deficiency in operation exists when a properly designed control does not operate as designed or the person performing the control does not possess the necessary authority or qualifications to perform the control effectively. * A significant deficiency is a control shortage or a combination of control shortages that adversely affects the entity’s ability to initiate, authorize, record, process or report financial data reliably in accordance with......

Words: 352 - Pages: 2

Client Memo

...M E M O R A N D U M To: Clients From: Team B, University of Phoenix Date: July 23, 2012 Re: Changes in Statement of Accounting Standards No. 115 (SAS No. 115) As key clients to Team B, we would like to take this opportunity to inform you of the current changes in the Statement of Accounting Standards. On October 2008, the AICPA Standards Board issued a new standard called Communicating Internal Control Related Matters Identified in an Audit (SAS No. 115). This policy was created to guide external auditors on how they should communicate with internal controls on deficiencies of their financial reporting of the financial statements. SAS No. 115 provides the following definitions of deficiencies in internal control, material weaknesses, and significant deficiencies: Deficiencies in Internal Control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect, and correct misstatements on a timely basis (AICPA, 2006-2012). Material Weaknesses. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected, and corrected on a timely basis (AICPA, 2006-2012). Significant Deficiencies. A significant deficiency is a deficiency, or a combination of...

Words: 310 - Pages: 2

Client Memo

...Client Memo To: Bob Supervisor From: CC: Joe Schmoe, Schmoe Trucking Date: 8/26/2013 Re: Leasing Options Schmoe Trucking has been presented with an opportunity that will require adding an additional 20 trailers to the ones they currently own. While there is an uncertainty to the length of the potential relationship, there is considerable potential for growth. As requested, I have spent the past few days examining the current FASB standards on leases to determine what the best course of action for Schmoe Trucking would be. There are a number of options when it comes to leasing, and it is vital that each option is examines in order to determine the proper course of action. There are a few things about leases that must be looked at before determining how to proceed. Leases are broken down into two categories; operating leases and capital leases. A capital lease is one that meets certain criteria and capital leases can be broken into subcategories; sales type leases and direct financing leases. We will be looking at the differences between sales type leases, operating leases, and direct financing leases in relation to the proposed acquisition of additional trailers. The first step is to determine if a lease is an operating lease or a capital lease. A capital lease will meet at least one of the following criteria. SAFS No. 13 outlines the capital lease criteria to be as follows; transfer of ownership of the leased item upon completion of the lease......

Words: 718 - Pages: 3


...My client is fairly familiar with using computers and can handle basic task. She also has some experience with using Access, but only for viewing data she receives from others. Microsoft Word is another program she is used to. She will need some basic lessons in how to use Access to add or edit data. One of her receptionists knows how to do this, so can teach her. I also recommend that she buys a manual or user guide for her and her staff to read to familiarise themselves with the software. She rated her ease at learning new skills as 7. My client can also save data as well as copy it (including to an external hard drive). The receptionists have a similar skill level to Mrs. Johnson, but rated their ease of learning as 8 and 9. They also said that they are able to handle common errors and problems. Two of the vets have some basic computer skills, but only one of them knows how to use Access. The other will need to learn from either my client or the receptionists. They both know how to use Word. The other two vets have nominal computer skills, so will need more extensive lessons on how to use the system. I would recommend that they go on a training course before the new system comes in place. My client is legitimately accustomed through by revenues of computers and can button basic task. He also partakes some experience with expending Excel, but only for broadcasting data she take delivery of from others. Microsoft Word is a not the same plug-in she is used to. She will......

Words: 485 - Pages: 2


...1) Client A: For Client A I would use the exploratory research as my research design. Exploratory Research entails a very informal research method, in order to gain more background information about the problem. In this case it is said “In these situations we know immediately the problem is that we don’t know what the problem is. There are many possible causes for this slippage.” After gaining their little knowledge of information they have on the cause of the market share to slip 15%, it is clear that this case would be an exploratory research. Also I would use a hypothesis in order to speculate the decline in market share in the past 12 months. Client B: For Client B I would use the Descriptive research design. Descriptive research mostly describes the answers to questions of who, what, where, when, and how. In this case Client B gives us enough information to work from. I would use the cross-sectional study. The cross-sectional study, measures in more of a large population and sample sizes. This study can be beneficial by narrowing down the time period associated with each campaign in each region, and the product category as well. Client C: For Client C I would use the Casual Research method. With Casual research, it mostly focuses on determining what will cause a change in consumer satisfaction, gain in market share, or increases in sales. In this case Client C is trying to determine what factors of their package design (size, shape, color, texture, etc.)to......

Words: 323 - Pages: 2


...Memo 1 Re: The medium is the message Dear madam, I understand that the datacenter is undergoing an upgrade to modern configuration that support VOIP(voice over internet protocol) which is impossible with the 10-base-T LAN cables hubs, which is considered to be an outdated technology. Data centers are focused on the LAN technologies, with the goal of redundancy and then to create a more scalable fabric within the data center. In this memo two network cabling option will be presented and one is going to be recommended. Recommendation: As per my search for the best cabling options for the upgraded data center and meeting future requirements is augmented category 6(cat 6A). Cat 6A cable belong to copper cabling category and is designed and improved for the data transmission of 10gb/sec at 500mhz. Considering current horizontal cabling which is a 10mbps star wired using hubs and backbone is 100mbps capable and uses switches at the core. Cat 6A will coming out to be the appropriate solution as category 6 with the extendedstar topology, components are specified to be interoperable between different vendor products and most importantly is compatible with backward technologies. Cat 6a establishes a set of specifications to help the evolution of the upcoming generation of applications and considered to be future proof. For the backbone cabling fiber optics is a best solution keeping the data security, efficiency and performance in mind. This combination of...

Words: 689 - Pages: 3

Response to Client

...Response to Client II Boyd Ferris ACC 541 October 20, 2014 Leslie Crews Response to Client II Memorandum TO: Greg Monroe FROM: Boyd Ferris DATE: October 20, 2014 SUBJECT: Issues regarding leases and lease structure Your client is being sued. You have asked the client’s lawyer about the possibility of losing the lawsuit. The client, meanwhile, has asked you to describe what would happen to his or her financial statements. The client has also informed you that by losing the lawsuit, he or she anticipates losing the mortgage and has started talking to a mortgage lender. The client wants to know if part of the debt is forgiven, or if the mortgage is rewritten, or if the mortgage will be rewritten if he or she files Chapter 11. The lawsuit also involves a patent held by the company. The company had acquired a hedge contract against the impairment of the patent. Aside from the recovery of the hedge, the client wants to know how the impairment of the patent will be reflected on the financial statements in the event of losing a lawsuit. Conduct research in FASB individually to answer your client’s questions. Write a 700- to 1,050-word memo as a team that is brief but fully explores the issues. Include the following in your memo: * Report requirements for contingencies and describe what would happen to the financial statements if the client loses the lawsuit. * Describe whether the client’s debt is forgiven if the mortgage is rewritten, or......

Words: 622 - Pages: 3


...| Landslide Limousines | Memo To: | Bradley Stonefield | From: | Jennifer Maldonado | cc: | Traci Goldman | Date: | October 24, 2014 | Re: | Compliance Laws | | | Employment Laws Austin Texas Our client Landslide Limousines is opening a limousine transportation service in the city of Austin in the state of Texas, as per your request I am including relevant employment laws that need to be kept in mind in order to have a safe and law abiding company. As a small business with 25 employees it is important that Landslide truly acquaint itself with employment-at-will law, many employers especially small companies believe that they have the right to fire any employee “at will”, Landslide should become familiar with the Doctrine of Employment at Will, “...US employers have the right to discharge an employee at will at will for any reason be good or bad…” (, 2014). However there are notable expectations: the Civil Rights Act, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment, The Family and Medical Leave Act (FMLA) all these acts supersede employment-at-will (HR Employment Compliance, 2014). In order for Landslide to avoid employees calling the Equal Employment Opportunity Commission (EEOC) with grievances, Landslide should implement a probationary period where all actions are documented for the first 90 days of employment. Understanding employment-at-will, will give our client the proper know how, when it......

Words: 341 - Pages: 2


...Memo #1 To: Business Relationship Manager, XYZ Inc. From: 670-21-4428 Date: 02/14/2015 Problem: XYZ Inc. is in a situation wherein it is unable to meet a given Project X deadline with its available resources and budget constraints. Causes: The following were identified as potential causes for the problem stated above: * Lack of formal scope definition process has resulted in vagueness and open ended conclusions about the actual requirements among the associates which has resulted in man-hour wastage further hampering the project budget. * The initial estimates of the project’s cost and schedule were found to be erroneous. * Insufficient historical information of a similar project has resulted in giving out incorrect man-hours required for successful completion of the project within the given deadline. * Critical project decisions including constant client interactions were handled by associates who lacked the subject matter expertise resulting in commotion among team members. * Distinct segregation of the roles and responsibilities of all the associates working in the project were not performed which has finally resulted in a confusion and a project deadline crunch. * Proper metrics to track periodic project progress were not in place. * Failure to prioritize the critical project tasks has affected the implementation progress. Recommendations: The following are some of the possible recommendations which could help revive XYZ Inc.......

Words: 286 - Pages: 2


...Memo To: The 2009 Client Files From: Susie Senior Re: December 2009 Reduction in Force/ Restructuring Background On December 14, 2009, the Company notified US and French employees that the Company would be reducing its workforce. For the US employees, this was communicated formally (writing) on company-wide and individual basis and those individual employees affected were terminated and revoked security access on December 14. For the French employees, this was communicated formally (writing) on a company-wide basis and informally (verbally) on an individual basis. Per French law, the Company was not allowed to fully terminate the employees on the date of notification. Instead, the Company submitted to the union employment committee the names of the employees it intended to terminate (those who were verbally notified on December 14). The union then had 30 days to notify the Company whether or not they agreed with the Company’s selections (based on experience, tenure, family status, health conditions, time to retirement, etc.) Should the union determine that an employee was not properly selected, they would notify the Company, and if the Company chose to continue to select that employee, it would open the matter to a separate settlement risk. The union came back on January 11 notifying the Company they agreed with all but one employee. The Company determined they would keep the employee in question on the list, and has reserved an additional settlement amount...

Words: 1365 - Pages: 6


...The first part of establishing a client-server network in the Home Hospice Care building would be establishing where the Access Points would be in the building for the WLAN, because the Windows 2008 server machine that is running Medical Manager is already set-up for the most part. Here is a diagram of the floor plan with the location of where the APs will be set-up. Each AP will be set-up with an omnidirectional antenna, with antenna gain features to ensure that signal is properly spread to all areas of the hospice through walls and other obstacles. I believe a wireless local area network is the best option. Next, the servers for the file managers and three-in-one printer, copier, and fax machine must be set-up. These servers will also be running on Windows 2008 standard. The file machine needs to be its own dedicated box, so that there is no extra delay for managers and employees when files need to be read, wrote, and managed. A print server set-up with one three-in-one machine would be the easiest to set-up and cost-effective as well. This would be beneficial to all employees and easy to set-up on each workstation. Windows 7 Professional edition would be the best idea for each workstation here at the company. Each workstation needs to have its own license purchased, but the benefits of having extended RAM capabilities is critical to the doctors/nurses here. Also, I think 6 notebook workstations would be a good standard for the doctors/nurses. They......

Words: 330 - Pages: 2


...Memo DATE: November 18, 2015 TO: All Downtown Merchants and their Employees FROM: Jack Jones, VDEF Executive Director SUBJECT: On-street parking complaints I am sending this memorandum out in response to above average numbers of complaints regarding on-street parking by employees of the downtown. As you are all aware, paring for clients and customers within the downtown area is at a premium. I would like to encourage and remind you all to free up the 2-hour on-street spaces by parking in the off-street lots. This is only a minor inconvenience when you look at the space you’ve opened up thus making your business that much more accessible to paying customers. Parking lots are available on South Railway, at the Esplanade, terminal Transit Parkade or other City-owned lots including Cottonwood, Chokecherry and Linden. As an added incentive, the City has recently lowered their parking rates. Lot Rates: * Cottonwood, Chokecherry and Linden rates are $45/month, with some available for $495/year * Transit Terminal Parkade ranges from $40 to $60/month ($440 to $660/year). They will also soon be installing metered parking for $1/hour or $5/day. * Esplanade rates are $47/month ($520/year) on the surface lot of $57/month ($630/year) for the covered parkade. * As you can see for yourself, a monthly pass is much cheaper than the alternative of accumulating parking tickets. ...

Words: 413 - Pages: 2


...Mombasa, Inc Memo To: CEO From: Tex Matters CC: Board of directors Date: 4/23/2012 Re: our ethical dilemma Thank you for allowing the opportunity to work on this important issue. It is not only important for us to do business, but it is important for us to do it the right way. We have an obligation not only to ourselves, but to our shareholders, customers, family and most importantly our country. We represent our country wherever our business takes us. As requested, we have studied the strength and weakness of every decision we can make with regards to this very important issue. Our analysis studied every important element. We gathered all important information. We asked all important questions. Based on our intensive study we have come up with the following possible alternatives: 1. We should hold our order and remanufacture it, then send it. 2. We should send the order as is to prevent loss to our bottom line. 3. We should inform our client of the issue, and offer to send the order at a discounted price. All the alternatives we concluded were legitimate in their own right. Any decision we make will have a justification. The most important element in our decision making process will be to evaluate whether or not each decision falls within our values. Our values are our rocks. We cling onto them in hard times. They always lead us. When we step out of our comfort zone, it affects our decision making. We impair our ability to make the right decision and......

Words: 2112 - Pages: 9

Memo to Clients

...Memorandum To: All Clients From: Jennifer Lopez – Junior Accountant Date: September 03, 2012 Subject: SAS 115 - Statement on Accounting Standards CC: Learning Team B As your accounting firm, we will continue to provide you with professional, accurate, financial information. As your auditor of choice, know that we follow the rules and guidelines set forth under the Statement of Accounting Standards (SAS) to ensure your financial auditing needs are met. We appreciate your continued business and will forever strive to ensure our relationship is strong. Whether or not you have an accounting background, our reports are designed to thorough and easy to understand. Recently the SAS has added a rule, SAS 115, which requires that auditors practice and states that our communication with you is our priority, and we must disclose certain information. This amendment is important as its intention is to reduce communication and expectation issues. Please note that there are now four categories for the expanded disclosure (Turner, Mock, Coram, & Gray, 2010): 1. The actual Audit; 2. The quality of the financial statements; 3. The quality of the financial reporting system; and 4. The sustainability of your business. Each of the categories above will provide detailed information including our level of assurance, research, and reasons for the audit. Additionally, we will openly and constructively communicate our accounting practices, express in writing the......

Words: 333 - Pages: 2

HD Star Wars (1977) | LeBron James | YTS Subtitles