SAS No. 112 will have an impact on the audits you perform for financial statements that ended on or after December 15, 2006. This toolkit will give you better insight into the implementation of SAS No. 112 and tools to assist you in educating and communicating the impact of SAS No. 112 with your clients.

While these tools and resources were developed to support you in the implementation and communication of SAS No. 112 in your firm and with your clients, they are not meant to replace the guidance and direction outlined in SAS No. 112 and in the Risk Alert on SAS No. 112.  Please refer to the SAS No. 112 and Risk Alert for the actual detailed guidelines and requirements for implementing SAS No. 112 in your audit practice.  

Toolkit Components

The tools included in the PCPS SAS No. 112 Toolkit are exclusively PCPS member benefits except the Frequently Asked Questions document, which is available to the general public.  The SAS No. 112 tools can be accessed at the SAS No. 112 Channel on the PCPS web site and include:

·       Frequently Asked Questions – The FAQs document is intended to address the most common practitioner questions related to applying SAS No. 112. In addition, it provides links to additional resources that may help you in understanding and applying SAS No. 112.   Click Here

·       SAS No. 112 Newsletter/Web site Template – This document is designed for practitioners to communicate the impact of SAS No. 112 to their clients via the member’s newsletter, Web site, or other marketing communications.  Click Here

·       SAS No. 112 Client Communication Letter – This template document is designed for practitioners to communicate the impact of SAS No. 112 directly to each client. There are two letters, with one written for use prior to the audit and the second written for use during the audit if the audit has already begun, to help communicate what SAS No. 112 will mean to the client organization.  Click Here

·       SAS No. 112 Talking Points Document – This document is meant to assist practitioners in addressing common questions clients may have related to SAS No. 112 and what the new standard means to their audit engagement.  You may choose to use it in preparing to have a conversation with your clients about SAS No. 112 before or during the audit, but prior to issuing any SAS No. 112 findings.  Click Here

·       SAS No. 112 Overview PowerPoint – This presentation provides an overview of SAS No. 112, the impact to a client’s audit, and definitions and examples of significant deficiencies and material weaknesses.  The presentation is designed for use by practitioners to educate their staff and clients about SAS No. 112 and can be tailored to address specific client issues.  Click Here

·       SAS No. 112 Client Letter Communicating Significant Deficiencies and/or Material Weaknesses – This template document is intended for you to use to communicate identified significant deficiencies or material weaknesses that is based on the sample communication outlined in the SAS No. 112. It can be tailored for your client’s specific issues that you identify during the audit and need to communicate to them in writing. Click Here

·       SAS No. 112 Web Forum – This previously recorded web forum, presented by Chuck Landes, CPA of the A&A standards group at the AICPA, explores the impact on the audits your firm performs for financial statements that ended on or after December 15, 2006. It provides you with insight into the implementation of SAS No. 112 and how to communicate the new standard and its impact to your clients as it relates to their audit engagement.

For questions on the use of these tools, or to share your ideas for enhancing their value in your efforts, please contact us at 1-800-CPAFIRM or email us at pcps@aicpa.org.