Article Archives >> Behind the Numbers >> March 16-31, 2007

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BEHIND the NUMBERS
SAS 112:  Internal Controls Take Center Stage
By Eric Fraint, President
Your Part-Time Controller, LLC

SAS 112 is a new auditing rule that may disproportionately impact small and medium sized nonprofit organizations.  This article will discuss what this new rule is, how it may impact your organization, and what you should do to prepare for it.

Statement on Auditing Standards 112, “Communicating Internal Control Related Matters Identified in an Audit,” or SAS 112 for short, is one of a series of auditing rules issued by the Auditing Standards Board, a part of the AICPA (American Institute of Certified Public Accounting).  This rule is effective for fiscal years ending on or after December 15, 2006.  If your organization has a year-end audit after this date, then your auditors are required to follow this rule.  SAS 112 applies to for-profits as well as nonprofits.

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Article Archives >> Behind the Numbers >> March 16-31, 2007




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