Audit Program Generator
From this screen, you generate a suite of audit programs, tailored for your particular client. Programs are provided as shown on the screen and include "other" assets and liabilities programs for unusual components. Not seen in the screen shot are programs for Journal entries, Contingencies, Subsequent events, Related parties, Going concern and Segment information. Also provided are an Engagement Quality Control Checklist and New Client Acceptance Considerations and an Initial Audit Engagement Checklist. Answering "No" to the question at the top of the form about whether this is an initial audit, hides the tabs for the last two checklists. The EQCR checklist is hidden if the first question is answered no.
Selecting "Yes" or "No" under the "applicable"column, hides tabs that are not relevant. For instance, Investments has been noted as "No" and the "B" tab on the spreadsheet is hidden.
Columns for reference to significant matters (which must be completed by entering "None" or a working paper reference) and the reviewer's and preparer's initials are provided. Names are selected from drop-down menus. The current date pops in when the box is initialled. (Names and initials are entered on the Configuration screen.)
Once all steps on an audit program are complete (you will note that the cash program indicates 9/9 steps completed), and the reference to significant matters and initials are entered the red "X" for that line is cleared. Once all red X's are cleared, the red X at the top of the page is cleared, and you know the forms have been properly completed.
Once the form is complete it can be printed, or printed as a PDF and saved electronically.
For use in the following year, the Configuration page has an "Erase all initials and dates" button. Press that, and the form is ready for use in the following year.
All the forms require Excel 2010 for proper functionality
Assesement of RMM - CRUX form
On the CRUX form, risk of material misstatement is assessed by component. For cash, RMM has been assessed as Low throughout, except for valuation which is negligible (presumably because there is no foreign currency.) The H/M/L assessments are translated to a numerical score and carried forward to the audit programs.
Space is provided to note risk factors, if felt useful to help with designing the programs. Notes can also be made about the intended audit approach. Control risk can also be assessed, though not mandatory, to provide guidance on the extend of control testing planned.
All programs are designed the same way, except for the checklist type programs at the end, Subsequent events for instance, where Auditing Standards specify the procedures to be done. These are lists of the procedures required by Auditing Standards. Balance sheet components have been combined with the related income statement component. Cash and interest, sales and receivable and so on. The RMM assessment from the CRUX form had been carried forward as a numerical score to the top and bottom of the program. All procedures have been assigned standard scores - which can be changed based on the professional judgement of the program preparer. If changed from the standard score, the cell is highlighted in blue, to let the reviewer know the score was changed.
Steps are selected from a standard list of procedures in the first column. If "No" is selected, the scores are deleted and the cells are turned blue. The program preparer is to tailor the program so that enough evidence, based on their judgement and the guidance from the suggested scores, is obtained.
For some steps, initialling the box is satisfactory documentation of completion of the step. These steps are cleared by the preparer selecting their initials from the drop-down list. (The yellow ! turns into a green check.) The date is automatically entered. If it is expected that a working paper is required to document completion of the step, a grey box is provided. Presumably a working paper reference will be entered, though if the step was simple, the grey box might provide enough room to document the step. In addition to initials, something must be entered into the grey box for the step to clear.
Once all steps are cleared, the red X disappears.
Not enough work done - still red
On this program, not enough testing has been planned for the existence assertion for cash. RMM has been assessed as L, so 18 points are needed. Only 8 points have been obtained. Even though all the steps are signed off, the red X remains and the "Total Evidence" boxes at both the top and the bottom of the form are red. The program needs to be re-designed and more testing done.
Audit Planning and Completion
The Audit Planning and Completion Documentation Aid is used annually to document other steps required by Auditing Standards, not included in the Audit programs. Sections include:
Materiality Assessment and Documentation, along with partner approval.
Documentation of Risk Assessment Procedures
Understanding the Entity and its Environment
Nature of the Entity
Selection and Application of Accounting Policies
Risk Factors, including Overall Risk Factors
Documentation of Fraud Risk Factors 240 A11
Planning Completion checklist
Audit Completion Checklist
Documentation of Practitioner Review
Understanding the Control Environment
Evaluation of Client Continuance
Evaluation of Independence Threats and Safeguards