Auditing a Tier 3 PBE with a Statement of Service Performance (Part 4)

In part 3 we completed our planning (E4) and our evidential testing (G to V sections), specifically looking at risk assessment and how to carry out transaction sampling.

In this article we look at how we finalise our job and create reports.

Once we have completed our evidential testing area we enter Finalisation area of Control page (17.1 onwards):

  • Look at any adjustments made and discuss with client:
    • Adjust if agreed (using post) - this updates TB final column
    • if not to be adjusted add a comment explaining why not
    • create reports as required to add to letter of representation

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  • Assess whether any contingencies and commitments (W2)
  • Carry out review of Performance Report (W3-W16 as required):
    • note these are extensive checklists of all requirements – you don’t have to use them all if you are confident that financial statements are compliant
  • Ensure letter from solicitor received and follow up ant litigation or claims
  • Quality control review
  • Optional peer review (unlikely with Tier 3 PBE)
  • Final Analytical Review optional if there have been any significant adjustments – probably unlikely
  • Going Concern review (X8) 

Create Management Letter (Y1):

  • Will be based on items already raised

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Audit Summary Information (Z1):

Key Issues, significant and other important risks and the results of testing are summarised here:

  • this page should highlight all the important issues that the engagement partner needs to see
  • links allow partner to drill down if more detail needed


Representation Letter (Z2):

To be requested for every job:

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  • attach list of unadjusted errors - links back to Adjustments page
  • checklist of requirements to complete

Review of Subsequent Events (Z3):

  • includes specific disclosure requirements for Tier 3 jobs

Audit Report (Z4-Z11 series):

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  • options for modified reports available
  • make sure that all questions are addressed in consecutive order and not missed out so that report is complete
  • check that final report looks complete – if not open to see options using Customise/Edit and follow blue links back to where items are incomplete or wrong
  • may also customise or add steps in here as required
  • print to PDF once complete or copy to clipboard and paste to word processor if further work required such as change of font or addition of custom page numbers or headers/footers

Finalisation:

  • Final Partner Review (Z12), Finalisation Checklist (Z13) any third party checklists to attach, and Points Forward (Z14)
  • Job is complete and may be rolled over, which produces a PDF including all attachments, which may be stored in your file system as your complete paperless audit file
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