Newsletter 31 July 2019

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In this issue

  • New Feature: Customising pages on a job by job basis
  • Pricing updates: IFRS audits and PBE audits and checklists
  • Recent Q & A
  • Discussion: New audit standards for less complex entities?

 

New Feature: Customising pages on a job by job basis


After having been requested for a very long time, we are pleased to announce that we have now released the ability to customise individual pages. 

To do this:

  • Each page has a customise tab at the bottom right (by the sharing and print buttons)
  • Clicking opens the customise dialog for that page
  • Items may be hidden or edited, or additional items added - just for this client
  • The index shows that the page is customised, a reviewer may observe what has been changed and the customising may be reverted at any stage
  • Customising is limited to "standard" users and above (limited users, peer reviewers and clients viewing shared pages cannot access) 
  • Customisation is retained on rollover.

The most obvious applications are for items that are not applicable on shared pages to be hidden to reduce the amount that the client has to complete, or to add an additional step to a page for some specific question that applies to this client alone. For more details see here.
 

Pricing updates: IFRS audits and PBE audits and checklists


As we have mentioned before we have now completed IFRS and PBE checklists for Tier 1 and 2 entities. For firms that audit these kinds of clients this will mean:

  • Existing Tier 1 and 2 jobs for PBEs and FPEs have all been done within the same template - these may now be upgraded to the appropriate new job type, depending on whether they are for profit or public benefit.
  • These new templates include our new Financial Reporting checklists - either For Profit (IFRS incorporating Tier 1 and 2) or PBE (Incorporating Tier 1 and 2).
  • Almost all content will carry across to the new templates (we have taken the opportunity to change a couple of pages based on user feedback but this is mostly duplicated content anyway).
  • These jobs are now listed as "premium content" - which means that their pricing includes the extra costs of the checklists (about $2.00/month per job depending on your plan).
  • These checklists may also be accessed in stand-alone format for your compilation work at a cost of about $2.00 per job/month - these may be accessed from your existing subscription or you may wish to subscribe separately for your accounts preparation department.
  • This fine-tuning of pricing of our packages and templates will likely continue as we add more specialised content.
  • For more information see here (IFRS) and here (PBE). 

 

Recent Q & A:


Q. Can you tidy up what clients see in terms of errors? Can they be called "adjustments" rather than errors or misstatements?
A. The Standard refers to "misstatements", so we have retained that language. Now instead of "adjusted and unadjusted errors" we have changed the reports to "adjusted and unadjusted misstatements".

Q. On the bank reconciliation testing page there is no mention of checking for approval of bank reconciliations - can this be added?
A. Yes - we have added a question: "Have bank reconciliations been approved and is there evidence of this approval?"

Q. Analytical Review includes working capital ratio, can there be another option for creating a liquid ratio?
A. Yes - this has now been added.

Q. There is no page for testing statements of cash flow in the Tier 3 PBE jobs - why not?
A. This was an oversight - and has now been added into the W area as per other jobs.

Q. Can it be made clearer how much we intend to rely on internal controls?
A. Yes good idea - Added to end of Internal Controls page: "Summarise our findings in our assessment of internal controls, how much reliance we will be placing on these controls and how this will affect our level of testing of details."

Q. Our practice reviewer asked that a NOCLAR clause be added to the engagement letters - can this be added at a template level?
A. Yes - Added into responsibilities of governing body:
- For ensuring that {{client.name}}’s business activities are conducted in accordance with all applicable laws and regulations;
 - For identifying and addressing any non-compliance with applicable laws and regulations by {{client.name}}, by an individual charged with governance of the entity, by a member of management, or by other individuals working for or under the direction of {{client.name}}


Q. In the GL testing area (J section) can there be a question asking if the GL system has changed?
A. Yes - we have added and if "yes" is selected we say "Test closing trial balance in old system to opening trial balance in new system and follow up any differences". 

 

Discussion: New audit standards for less complex entities?


As mentioned a while back, there is a consultation process lead by the IAASB now under way concerning whether we need a separate set of standards for less complex entities.

A number of countries have tackled this in various ways but it has been rightly noted that these will carry far more weight of there is some kind of international consensus. 

What do you think?

  • Is there a clear line between entities that need the full weight of the ISAs and those that don't?
  • Could this line perhaps be whether they have sufficient controls to rely on?
  • What are the particular stumbling blocks that the current Standards present when trying to apply them to less complex entities?
  • What sorts of ways could the current standards be reconfigured to fit more with the flow of the "audit story"?
  • Is there scope for a rewrite of the existing standards around more of a theoretical framework that give more flow and practical guidance for the auditor than the current piecemeal and confusing standards (that's a leading question)?

As this is where the majority of our users spend most of their energy I would love to get your feedback to these questions with the idea of making a serious submission on this. It's an opportunity to not just grumble about irrelevant requirements but to come up with something better. 

Please contact me with your thoughts, or follow the link and make your own submission.

 

Best regards

Clive McKegg
CA BCom - Founder

Photograph at top - Likuri Island, Fiji

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