The New Role for Council Member in the Audit Process

摘要

Beginning in FY 2007-08, auditors of California cities must comply with the requirements of the Statement on Auditing Standards No. 114, "The Auditor's Communication With Those Charged With Governance." Statements on Auditing Standards (SASs) are issued by the American Institute of Certified Public Accountants (AICPA) and apply to all industries in connection with a financial statement audit. SAS No. 114 is one of a series of statements intended to improve the auditing process as a result of perceived audit failures in connection with companies such as Enron. The statements are also an attempt to narrow the "expectation gap" between the CPAs' understanding of the services they provide and the public's expectation of those services.