Probe MMX Compilation

Transcription

1 Probe MMX Compilation

2 What s New Overview Probe MMX Compilations Probe MMX uses the latest CaseWare and Template Technology, creating a way to conduct Compilation engagements using the latest International Standard on Related Services (ISRS 4410) requirements. Probe MMX is much more than a content template; it is an intelligent template with a specific approach to provide the best results. Compliance Probe MMX Compilations complies with the International Standard on Related Services (ISRS 4410). User Guide Probe MMX Compilations Pre-engagement Planning Compilation Engagement Evaluation The objective of this document is to ensure that firms accept clients who fit their client risk profile, and to ensure that the terms of the engagement have been agreed upon between the firm and the client. The document covers the following topics to assist in agreeing the terms of the engagement, and reaching a conclusion regarding client acceptance: Terms of the engagement Engagement continuance/acceptance Ethical requirements Engagement Letter The purpose of this letter is to assist the user to confirm the terms and conditions of the engagement with management and, where appropriate, those charged with governance Gathering Information The objective of this document is to gain an understanding of the entity and its environment, and to give the user an overall insight regarding the transactions that took place during the year for every line item on the financial statements. The document is divided into the following sections in order to obtain an overall understanding of the entity: Business and operations, e.g. "Describe the nature of the business and its operations" Each financial statement category e.g. Non-current assets. Compilation Work Programs Work Programs The work programs provides the compiler with standard required procedures which the compiler has to perform on each line item of the financial statement, there is a work program for each financial statement category, e.g. Noncurrent assets and then each work program is divided into the different line items of the financial statements, e.g. Property, plant and equipment. The document is divided into different sections: Procedures The procedures that the user followed during the compilation. Exceptions The user states whether he has found any problems during his testing by selecting Yes / No from the dropdown box. Prepared by This column contains the details of the user completing this document and date of completion. Reference A reference to supporting documentation can be inserted here, if necessary.

3 Finalisation Partner Sign-off The objective of this document is for the engagement partner to sign-off on the engagement file, and the compilation.

4 Probe MMX Audit and Review

5 What s new in Probe MMX version Design Mode When Probe MMX was launched design mode of all documents were locked, due to the fact that users asked for certain documents to be unlocked. This version now has the following documents unlocked for the users formatting convenience. These documents are: Minutes Letter of representation Engagement letter Bank confirmation Director s remuneration certificate Minutes Unlocked design mode for editing (all user editable documents are now indicated with a purple title bar). Reformatted. Added space for letterhead (top and bottom of document). Corrected an error whereby the date didn t display Partner sign-off Corrected an issue that occurred in small engagements that disabled the partner sign-off section Subsequent events work program Corrected an error in some versions whereby comments could not be inserted next to procedures to identify subsequent events. Added a right-click menu that enables the user to insert more lines Going concern work program Corrected an error that prevented this document from functioning in some versions Subordination agreements checklist Corrected a spelling mistake Overall analytical review Added gross profit percentage calculation. Added net profit before tax. Corrected the year end date in the display of return on equity. Will not be applicable for review engagements. Corrected a calculation.

6 02.40 Evaluation of misstatements Added a conclusion section (Premium only). Inserted totals for all columns (Premium only) Consideration of audit report Corrected spelling errors Senior s final checklist Added questions regarding audit documentation, interim audit work performed, fraud and laws and regulations. Added steps for review engagements Manager s final checklist EQCR Checklist Inserted blank rows to document risk areas Report to management and those charged with governance Fixed issue where date did not show. Inserted right-click menu to enable user to insert page breaks. Changed the heading of the Control environment table to also refer to other aspects of internal controls. Inserted a button to delete page breaks Letter of representation Inserted right-click menu to enable user to insert page breaks and a button to delete the page break. Inserted space for letterhead. Removed footer that printed on the first page. Corrected an error whereby the date of the letter didn t show. Changed the addressee to the auditor, not the client. Unlocked design mode for editing (all user editable documents are now indicated with a purple title bar).

7 10.20 Engagement evaluation Emphasized the pre-conditions for an audit. Procedure to update engagement letter now hides on initial audits. Corrected an error that prevented the activation of accounting estimates on 10.51, even if it was selected in this document. Corrected an error that caused the long description of the framework to be transferred incorrectly from this document to other documents. Corrected roll-forward settings to retain more information on rolling a file forward Engagement letter Removed footer from first page. Unlocked design mode for editing (all user editable documents are now indicated with a purple title bar). Inserted right-click menu to enable user to insert page breaks and a button to delete the page break. Inserted space for letterhead. Corrected formatting of numbered paragraphs Discussions with management and those charged with governance Added enquiries regarding related parties. Added a question regarding the period beyond management s assessment of going concern. Added considerations for review engagements. A new tab was added with Accounting considerations Time budget The audit budget document from the old Probe was brought back Gathering information Added a question about reliance on interim audit work. Where relevant transactions and balances need to be selected for Small entities, an explanation was added that non-selection implies that the particular area is considered to be low risk and no risk assessment at assertion level will be performed. The term relevant was replaced with detailed risk assessment required to avoid confusion with relevant controls in Added steps for review engagements Types and volumes of transactions Corrected an issue where the risk icon didn t print. Explained why controls over related party transactions are always relevant.

8 10.52 Preliminary analytical review Inserted a complete new document, did not exist before Overall materiality assessment Disabled performance materiality for review engagements. Add gross profit, net profit after tax and liabilities as benchmarks. Allow user to base trivial amounts on a range rather than a fixed amount (must be set up in Firm Settings). Inserted paragraphs to document reasoning for performance materiality and amounts that are clearly trivial. Moved the desired audit risk assessment to just above performance materiality assessment explanation. Changed the way extra lines are inserted. The prior year column now hides if it is the company s first year of operations. Corrected an error which caused an incorrect calculation of the maximum of the range in some instances when previous years figures are used Areas likely to be misstated Inserted a complete new document, did not exist before Risk analysis summary All Rights and Obligation columns are now shown as N/A in income statement only sections Inherent risk assessment at financial statement level Deleted a duplicated question. Changed the document so that the risk and the procedure are recorded on this document. Risks can now be deleted by right-clicking on the risk. Inserted a risk record button. Insert space to document the sources of information. Corrected an issue where the measurement and review of the entity's financial performance was only considered in the small version Consideration of laws and regulations Corrected an issue where the warning triangle did not appear even after a risk has been recorded. Corrected an issue where some acts may appear under two different areas of this worksheet, or not at all Control risk assessment Inserted a risk record button. Change the document so that audit procedures are recorded on this document. Risks can now be deleted by right-clicking on the risk. Inserted a risk record button. Insert space to document the sources of information.

9 11.40 Fraud risk assessment Change the document so that audit procedures are recorded on this document. Risks can now be deleted by right-clicking on the risk. Inserted a risk record button. Insert space to document the sources of information. Small wording changes Control activities design and implementation Fixed printing of headers to stay with next section. The user can insert page breaks. Change the section "System description" to keep together. Corrected a typing error Risk assessment at assertion level Removed Rights and Obligation assertion for income statement items. Correct two calculation errors. Reprogrammed this document so that risk, controls, procedure etc. are all addressed in this document. Added a risk record button to this document. Presumed risk of revenue recognition is now also added in investment income Controls over significant risks Changed paragraph numbers to follow consecutively. Removed spaces between tables. Reprogrammed so that everything is edited by right-click menu Manager planning checklist Audit plan and strategy Changed some programming that could cause database issues. Removed Rights and Obligation assertion for income statement items. Removed non-significant risk procedures as they don t require specific audit attention. Change document for changes explained above. Corrected a cell which had the override flag switched on. Improved freeze and printing of headers to print better. Changed column width to allow wider text. Corrected a printing issue.

10 12.30 Planning memorandum Work programs Enabled review functionality. Corrected a roll forward issue. User can select to print lead sheets on the work programs by selecting the option in Probe Firm Settings. Changes were made to the required procedures for estimates. Conclusions Remaining audit risk is no longer automatically inserted. It is still calculated and provided as a tooltip, the user can double-click to accept the estimate. Corrected the tooltip for subsequent events and going concern. Hide Rights and Obligation risks for income statement only sections. Changed some calculations. Inserted Reason cell to explain reason for risk assessment. The comment cell is automatically opened when materiality is revised by the user. The Estimated risk remaining cell was cleared by default. A tooltip still shows Probe s estimate based on user selections, but the assessment now has to be typed in to emphasize that professional judgment is necessary in this assessment. Arrows were added to assist with adjusting the risk assessment if necessary based on evidence obtained. Review engagements conclusion was inserted Property, plant and equipment work program Removed a duplicated step Trade and other receivables work program The name of the document was changed as above. Corrected an assertion Receivables confirmation summary Corrected an issue that prevented the update function from working. Corrected an issue that caused the reply to one answer to be copied to all items. Removed the reference to the receivables confirmation statistics that are no longer in Probe MMX Cash and cash equivalents work program Corrected an assertion Bank confirmation Inserted space for letterhead. Corrected incorrect calculations in some date cells that caused From and To dates to be the same. Now allows user to decide name of signatory or firm at the end of the letter. Unlocked design mode for editing (all user editable documents are now indicated with a purple title bar).

11 40.10 Capital and reserves work program Taxes and levies work program Trade and other payables work program The name of the document was changed as above. Corrected the risk table to hide for small entities. Corrected an issue where revised performance materiality was not pulled through correctly Directors remuneration certificate Unlocked design mode for editing (all user editable documents are now indicated with a purple title bar) Opening balances and comparatives work program Corrected an issue where headings didn t show on the Conclusion Tab Blank work program Inserted a complete new document, did not exist before Substantive testing worksheet Changed the number from to Corrected an error where some cells were numbered the same. Ensure that is refreshed when this document is opened. Fixed the drop down box which shows the lead schedule information. Widened some columns to accommodate bigger numbers. Corrected an issue where anomalous errors were included in extrapolation of sampling error Test of control worksheet Inserted a complete new document, did not exist before Focused Enquiry Document Inserted a complete new document, did not exist before

12 Probe firm settings Changed the risk descriptions. Add gross profit, net profit after tax and total liabilities as materiality benchmarks. Firms must choose in firm settings if they want to use the benchmarks. Allow firm to base trivial amounts on a range rather than a fixed amount. Allow performance materiality to be based on a range of figures. The tab where cycle descriptions can be selected and changed is now hidden because it is not used yet. The materiality table was replaced. Inserted a section where the firm can set minimum sample sizes. Added ability to switch date and time on or off in footers. User can select if lead schedule totals should show on work programs or not. User can select if trivial amounts and individually significant items should show on work programs or not. Moved the decision to show assertions on work programs from the document menu to Probe Firm Settings. A tab was added to view and update all document versions. General Renamed all audit programs to work programs All documents now move with the freeze pane when scrolled. Fixed an issue where the name of the client and the year end date cut off. Inserted Frequently Asked Questions, What s New and Getting Started links in the Help folder. All documents will now show an update reminder if Firm Settings are out of date. Added a button that allows the user to switch the update reminder off. It can be switched on again in the document menu. The Update menu was replaced with a more comprehensive Help menu.

13 Contact us Main Contact Details CaseWare Africa Reception: ProBeta Accountancy Development (Pty) Ltd Reception: Help Desk Direct Extension CaseWare Working Papers: CaseWare Africa Support: ProBeta Support: CaseWare Africa Web Support: ProBeta Web Support: Other Important Details. us at regarding: Feedback Ideas on service or products Product information Account or license information Any other queries