What's New - Audit System

What's New - Audit System

Audit System 25.00 - October 2023

The Audit System October 2023 (version 25.00) is a minor update. For information on specific workpapers review Audit System document and procedure updates. Any engagement file that has not yet been updated to Audit 24.00 should now follow the Create New File and Import Data (update method 2) process.


Audit System 24.00 - October 2022

The Audit System October 2022 (version 24.00) update includes changes to the risk dialogs and their ratings. This change has been made to align with the ASA 315 changes (ISA (NZ) 315 for New Zealand engagements). The template also includes changes to ASA 220 and ASA 502.

 

ASA 315 Update

  1. Risk Dialog changes

  • “What can go wrong” field removed.

  • “Financial Report Level (FRL) renamed from “Entity Level (EL)”

  • “Inherent Risk Factors” field added.

  • “Inherent Risk Factors Categories” field added.

  • “Inherent Risk Factors Description” field added.

  • “Likelihood of Misstatement” 

    • Renamed from “Likelihood to occur” 

    • Results changed from 1, 2, 3, 4, 5 to High / Low

  • “Magnitude of Misstatement” 

    • Renamed from “Monetary impact” 

    • Results changed from 1, 2, 3, 4, 5 to High / Low

  • “Inherent Risk” results changed from:

    •  High / Medium / Low to Significant / Higher / Lower

  • “Control Risk” results changed from:

    •  High / Medium / Low to High / Low

  • “Risk of Material Misstatement” 

    • Renamed from “Residual Risk” 

    • Results changes: High / Medium / Low to Significant / Higher / Lower

  1. ASA 2020-1 / ASA 2021-1 (also applied NZ equivalent)

  • All relevant Procedure and other workpapers have all been updated to reflect these changes. This will be automatically applied with the engagement Audit 24.00 update. Please refer here for more information.

  1. Understanding the entity worksheets

  • 2-100 Understanding the Entity (Nature and Environment). This workpaper has been completely re-designed to comply with the new 315 standard. You are advised to export previous versions 2-100 to RTF (Rich Text formats) to preserve that information in your ongoing engagement file. Please refer here for more information.

  • 2-105 Understanding the Entity (System of Internal Controls - Financial Report Level). This workpaper has also been re-designed to comply with the new 315 standard. You are advised to export previous versions 2-100 to RTF (Rich Text formats) to preserve that information in your ongoing engagement file. Please refer here for more information.

  • 2-18X Key Business Process (master). A new worksheet designed to document your understanding of the key business processes, including key information systems used. This then relates to the 2-190 worksheet. Please refer here for more information. 

  • 2-190 IT Applications Worksheet, formerly 2-110, has been re-designed to comply with the new 315 standard. The information feeding into 2-190 is driven by the IT Applications identified within 2-18X. Please refer here for more information.

  • 2-400 Overall Audit Strategy. Minor changes to guidance and link to 6-100 (or 6-100NZ for New Zealand engagements)

  • 2-420 Audit Team Discussions. Minor changes to guidance and link to 6-100 (or 6-100NZ for New Zealand engagements) 

  1. Changes to Assertions

  • Combined assertions have changed from C E A V to C E AV P. Please refer here for more information.

  • All Phase B Risk Response Programs (B.10 - X.10) have been updated with the new assertions. 

  1. FSA Worksheet

  • Now defaults to the All tab upon opening with all column widths adjusted to fit new risk ratings.

  • New Assertions now linked to the FSA.

  • New Feature which hides / shows Audit Response columns based on Risk of Material Misstatement results. Please refer here for more information.

  1. RRPT Risk Report

  • Several New views

  • New view CWANZ - 315 Oct 22 to assist with updating to Audit 24.00. Please refer here for more information.

  • Colour shading formatting for Inherent Risk and Risk of Material Misstatement will no longer occur. These will be represented with white background. 

  1. Sampling Worksheets

  • Updated column width for new “Inherent” risk rating: Significant 

  • SAMP New Substantive Sample Sizes Worksheet updated firm settings area

  • “Substantive Analytical Procedures”, formerly “Other Substantive Tests” 

  1. IRAM Worksheets

  • Updated column width for new “Inherent” risk assertion rating: Significant 

  • New colour scheme to match risk reports and 3-210. 

  1. 3-210 - Risk Assessment Summary

  • New worksheet that consolidated summary of important information contained within the RRPT and FSA in one place. 

  • Can be filtered to see Significant only risks and FSA assertions. Please refer here for more information.

  1. Control Dialog changes

  • Turned off Maturity Level

ASA 220 Update

  1. New and Updated Programs

  • 3-220 QM Program - Engagement Partner Responsibilities (Planning) new

  • 3-230 QM Program - Engagement Quality Review (Planning) new

  • 5-310 QM Program - Engagement Partner Responsibilities

  • 5-320 QM Program - Engagement Quality Review 

  1. Terminology Changes throughout the template

  • “Quality Management” formerly Quality Control

  • “QM” formerly QC

  • “Engagement Quality Review” formerly Engagement Quality Control Review 

  • “EQR” formerly EQCR

 

NZ AS 1 - The Audit of Service Performance Information

  1. New NZ AS 1 worksheets

  • 1-304 Letter Including Service Performance Information (NZAS 1 Appendix 4)

  • 2-210 Statement of Service Performance - Materiality (NZ AS 1)

  • Y.01 Leadsheet - Statement of Service Performance

  • Y.10NZ Risk Response Program - Statement of Service Performance

  • 4-160 Statement of Service Performance - Misstatement Schedule

  • 4-755 Audit Report Service Performance Information (NZ AS 1 Appendix 6,7)

  • 5-100 Management Representation (NZ AS 1 Appendix 5)

 

ONE FORM

  1. Updated content 

  • 315 / 220 Content: OneForm updated for ASA / ISA (NZ) 315. However engagement partners are reminded that compliance of a OneForm engagement is the responsibility of the Engagement Partner. You are advised to export previous versions ONE to RTF (Rich Text formats) to preserve that information in your ongoing engagement file. Please refer here for more information.

  • NZ AS 1 for New Zealand entities only: A New Zealand only standard which deals with the auditor's responsibilities with respect to service performance information when an auditor is engaged to audit the general purpose financial report. Please refer here for more information.

  1. Improved Functionality

  • Inclusion of Risk / Controls / Reportable Item tables: Hidden by default, you can now activate either a Risk, Controls or Reportable Items table within OneForm via the Settings.

 

 MICRO Audit

  1. Updated content
    315 / 220 Content: Minor content correction to the MIC workpaper of Micro Audit profile. However engagement partners are reminded that compliance of a Micro Audit engagement is the responsibility of the Engagement Partner.

  2. Changes to Assertions
    New Assertion assignment for Micro Risk Response Programs: Z.A10, Z.L10, Z.R10 and Z.O10.

Other changes to Audit System

  1. NFSAGRP Worksheet - Financial Statement Area (Group Balances)
    The NFSAGRP document is used for determining component FSAs of a group audit (ASA 600). Due to the Changes to Assertions this workpaper has also been updated to incorporate the new assertions. Please refer here for more information.

  2. DARTs Detailed Audit Response Tables
    The DARTs which are located in the Risk Response Programs of Phase B have been amended to align with the changes to 315. These will be automatically updated during the Audit 24.00 update.

  3. Audit Process Map
    The Audit Process Map has been slightly amended to incorporate new workpapers and minor changes. Please refer here for more information. 

  1. HYP Hyperlinks control
    New URLs to the AUASB and XRB websites have been updated. The HYP document is automatically updated during the Audit 24.00 update. Please refer here for more information.



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