Statement on auditing standards, 060

              Statement on
Auditing Standards
Issued by the Auditing Standards Board
AICPA American Institute of
Certified Public Accountants
April 1988
60
Communication of
Internal Control Structure Related
Matters Noted in an Audit
1. This Statement provides guidance in identifying and reporting
conditions that relate to an entity's internal control structure observed
during an audit of financial statements. It is contemplated that the
communication would generally be to the audit committee or to indi­viduals
with a level of authority and responsibility equivalent to an
audit committee in organizations that do not have one, such as the
board of directors, the board of trustees, an owner in an owner- man­aged
enterprise, or others who may have engaged the auditor. For the
purpose of this Statement, the term audit committee is used to refer to
he appropriate recipient of the communication. This Statement also
provides guidance on establishing, between the auditor and client,
agreed- upon criteria for identifying and reporting additional matters
beyond those required by this Statement.
Reportable Conditions
2. During the course of an audit, the auditor may become aware of
matters relating to the internal control structure that may be of interest
Copyright © 1988 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036- 8775
1234567890 AudS 898