New Nonprofit Auditing Requirements SAS145 with Johan Hammerstrom

New nonprofit auditing requirements SAS145 now include IT and cybersecurity compliance. Are you ready?In 2022 the AICPA Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 145,Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. The new standard became effective for audits of financial statements for periods ending on or after Dec. 15, 2023. For more on SAS 145 changes, read this article in the Journal of Accountancy.For the first time, SAS No. 145 now provides explicit definitions for the terms general information technology (IT) controls, IT environment, and information-processing controls. In addition, as IT utilization brings additional risk, the new guidance expressly defines risks arising from the use of IT.As audits proceed with the new guidelines, we expect a learning period for auditors, IT professionals, and nonprofit leaders. If you have questions about what the new requirements entail, you are not alone. Community IT has begun to field questions from our clients and their auditors about IT systems and cybersecurity controls. We will continue to share our insights and advice with our community as audits evolve to incorporate IT security.We're happy to see IT security requirements finally addressed in financial audits and look forward to helping nonprofit leaders and auditors better understand the interplay of well-managed IT with better financial security and protection from bad actors.Listen to CEO Johan Hammerstrom explain the changes to the guidelines in SAS145 that you will need to know whether you are in nonprofit IT, financial, or leadership roles, or an auditor looking for insights into the IT management side of the new requirements. Since the new nonprofit auditing requirements SAS145 impact everyone in nonprofits, please contact us if you have more questions we can help with. _______________________________Start a conversation :)Register to attend a webinar in real time, and find all past transcripts at https://communityit.com/webinars/email Carolyn at [email protected] LinkedIn on reddit/r/nonprofitITmanagementon the Community IT websiteThanks for listening.