AU 325: Communicating Internal Control Related Matters Identified in an Audit1

AU-C 265: Communicating Internal Control Related Matters Identified in an Audit

AU EFFECTIVE DATE AND APPLICABILITY

Original Pronouncements Statement on Auditing Standards (SAS) 112, superseded by SAS 115.
Effective Date Audits of financial statements for periods ending on or after December 15, 2009.
Applicability Audits of financial statements in accordance with generally accepted auditing standards (GAAS).

AU-C EFFECTIVE DATE

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.

The clarified SAS makes explicit requirements that were implicit in the extant standard and adds two new requirements.

AU-C Section 265 makes explicit the following requirements:

  • To determine whether, on the basis of the audit work performed, the auditor has identified one or more deficiencies in internal control.
  • To include specific matters in a written communication stating that no material weaknesses were identified during the audit that are similar to those in the written communication of significant deficiencies and material weaknesses.

AU-C 265 adds the following requirements:

  • The requirement to communicate, in writing or orally, only to management, other deficiencies in internal control identified during the audit that have not been communicated to management by other parties and that, in the auditor’s ...

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