SAS No. 115 SAS No. 115 in particular guides auditors on the way that they should deal with the internal control deficiencies in the case of performing their work. In particular, the auditors remain guided on what they should do in the case that they discover deficiencies in the internal control of an entity especially at the time when they are auditing the financial statements. The section is applicable in the case where the auditor issues a statement to the point of disclaiming or expressing a disclaimed opinion. As part of the guidance, the auditors are given a benchmark in the way that they should identify the deficiency in internal control, the significance of the deficiency in auditing and finally the materials dealing with the material weaknesses. The auditors are guided on the way that they should proceed to identify the severity of the deficiencies in the internal control that they identify while auditing the financial positions. (Communicating Internal Control, Section .8) As part of the evaluation of the deficiency, the standard asserts that the auditors should establish whether the defect can be termed as a significant or material weakness when it is taken individually or in combination. As a guiding element, the standard asserts that in the determination of the severity of the deficiency, the auditors should consider the magnitude that will result if there is a potential misstatement from the deficiencies. (Communicating Internal Control, Section .8) Auditors are also guided on the factors that they should identify as they seek to determine the severity of the deficiencies.
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These lead the auditors in the direction that they should focus their energy and also be keen to identify so that they should identify the deficiencies in the internal control. These include the financial statements amounts and the volume of activities that are exposed to the deficiencies. The standard also guides the auditors on the ways that they should perform the standard tests and procedures that can help them determine the effectiveness of the internal controls in carrying out the operations. (Communicating Internal Control, Section .14) The auditors are amply guided on the way that they should communicate. Communication has been espoused as the most important role that the auditor must perform in case that a deficiency in the internal control is identified. (Communicating Internal Control, Section .17) The auditor has a role to communicate to those that are charged with the duty of managing the organization on any deficiency on the part of the internal controls immediately they identify such a deficiency Adequacy of Standards Standards provided in SAS. No 115 for the auditors to follow while evaluating or dealing with the deficiencies in the internal control are adequate based on some reasons. The standards are procedural and logically flowing from the definition of the deficiencies all the way to the duties that the auditors must undertake. The auditors have a point of reference in the way that they should deal with the deficiency in the internal controls. It is a fact that many organizations have instituted internal controls that are aimed at ensuring that the financial statements reflect a true and fair view of the performance of an organization. While this has always been an anterior motive, it is clear that these internal controls whether by design or default have deficiencies that limit their
These lead the auditors in the direction that they should focus their energy and also be keen to identify so that they should identify the deficiencies in the internal control. These include the financial statements amounts and the volume of activities that are exposed to the deficiencies. The standard also guides the auditors on the ways that they should perform the standard tests and procedures that can help them determine the effectiveness of the internal controls in carrying out the operations. (Communicating Internal Control, Section .14) The auditors are amply guided on the way that they should communicate. Communication has been espoused as the most important role that the auditor must perform in case that a deficiency in the internal control is identified. (Communicating Internal Control, Section .17) The auditor has a role to communicate to those that are charged with the duty of managing the organization on any deficiency on the part of the internal controls immediately they identify such a deficiency Adequacy of Standards Standards provided in SAS. No 115 for the auditors to follow while evaluating or dealing with the deficiencies in the internal control are adequate based on some reasons. The standards are procedural and logically flowing from the definition of the deficiencies all the way to the duties that the auditors must undertake. The auditors have a point of reference in the way that they should deal with the deficiency in the internal controls. It is a fact that many organizations have instituted internal controls that are aimed at ensuring that the financial statements reflect a true and fair view of the performance of an organization. While this has always been an anterior motive, it is clear that these internal controls whether by design or default have deficiencies that limit their