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The proposed SAS would provide guidance in connection with an engagement to report on whether an entity's system, taken as a whole, was sufficient to meet the objectives of internal accounting control. This would be a voluntary service and not mandated as part of an audit. The proposed SAS would also provide guidance on reports based solely on a study and evaluation of internal accounting control that was made as part of an audit of the entity's financial statements and on reports based on pre-established criteria of regulatory agencies. Distribution of these reports is to be restricted to an entity's management, specified regulatory agencies, or other specified third parties. The proposed SAS would supersede SAS No. 1, sections 640, "Reports on Internal Control," and 641, "Reports on Internal Control Based on Criteria Established by Governmental Agencies."
Auditing, Internal -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : Reporting on internal accounting control;Reporting on internal accounting control" (1979). Statements of Position. 415.