Communicating Internal Control Related Matters Identified in an Audit

SAS 112 establishes standards and provides guidance on communicating matters related to an entity's internal control over financial reporting identified in an audit of financial statements. Grantees will find this information useful when preparing for the agency audit review in understanding the level and type of reporting that auditors are required to perform. SAS 112 supersedes SAS 60, Communication of Internal Control Related Matters Noted in an Audit.

The following is provided courtesy of the American Institute of Certified Public Accountants, Inc.


(SAS) 112, Communicating Internal Control Related Matters Identified in an Audit

Statement on Auditing Standards (SAS) 112, Communicating Internal Control Related Matters Identified in an Audit became effective for audits of periods ending on or after December 15, 2006.

SAS 112 establishes standards and provides guidance on communicating matters related to an entity's internal control over financial reporting identified in an audit of financial statements. SAS 112 supersedes SAS 60, Communication of Internal Control Related Matters Noted in an Audit. The following are some changes that have resulted from the issuance of SAS 112:

The term reportable condition is no longer used. The terms significant deficiency and material weakness are used to describe control deficiencies that must be communicated to management and those charged with governance.

Your communication to management and those charged with governance must be in writing.

Even if you communicated specific significant deficiencies and material weaknesses in previous years, as long as those deficiencies continue to exist, you must continue to communicate them.

The communication is best made by the report release date, but should be made no later than 60 days following the report release date.

Communicating Internal Control Related Matters Identified in an Audit. AICPA. 2006. English.

Last Reviewed: September 2008

Last Updated: November 13, 2014