Conal Kennedy,  Head of Practice Consulting, ICAI January 2009 Procedures for Quality Audit 2009
Objectives of this presentation <ul><li>Present the PQAs </li></ul><ul><li>Paperless audit </li></ul>
The PQAs <ul><li>Quality Audits  </li></ul><ul><li>Planning </li></ul><ul><li>Fieldwork </li></ul><ul><li>Completion </li>...
What’s new in the PQAs <ul><li>Fully integrated with RAP  </li></ul><ul><li>Shorter planning section </li></ul><ul><li>Emp...
Objective of an audit <ul><li>To enable auditors to give  an opinion  on financial statements… </li></ul><ul><li>to provid...
An Audit <ul><li>Getting it right on a budget. </li></ul><ul><li>Protect your client and protect yourself </li></ul><ul><l...
Checklists <ul><li>Avoid checklist driven auditing </li></ul><ul><li>Checklist – endeavours to be comprehensive </li></ul>...
Planning – Key Questions <ul><li>What do we know about the client? </li></ul><ul><li>What are the numbers telling us? </li...
Planning  - Key Questions <ul><li>What is expected of the auditor? </li></ul><ul><li>Who is my client?  </li></ul><ul><li>...
 
Understanding your client <ul><li>Make a list of the top five of each of the following </li></ul><ul><li>Suppliers </li></...
PQAs and Risk <ul><li>Previous version of PQAs </li></ul><ul><li>Planning – series of standalone spreadsheets </li></ul>
PQAs and Risk <ul><li>Link between knowledge of client and risk </li></ul><ul><li>Link between the financial statements an...
 
PQAs on Excel <ul><li>Advantages of Excel </li></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>Can be linked to suppo...
PQAs on Excel <ul><li>Disadvantages of Excel </li></ul><ul><ul><li>Electronic signatures </li></ul></ul><ul><ul><li>Delete...
Fully paperless PQAs  <ul><li>Populate lead schedules from trial balance  </li></ul><ul><li>Version control </li></ul><ul>...
PQAs – other features <ul><li>Practical work programmes for each section  </li></ul><ul><li>Aide memoir to address disclos...
The Disclosures Aide Memoir <ul><li>An Aide Memoir, not a checklist  </li></ul><ul><li>Useable </li></ul><ul><li>Not compr...
 
Questions?  <ul><li>Thank you for your attention </li></ul>
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Conal Kennedy, Electronic Procedure For Quality Audit (PQA) & Relate Accounts Production

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Electronic Procedure For Quality Audit (PQA) & Relate Accounts Production

Ian Lucey, Director Relate Software and Conal Kennedy FCA, Head of Practice Consulting, ICAI will demonstrate the new pack for Practices
The ICAI and Relate Software are delighted to announce they have signed an agreement to jointly supply the PQA to members in practice. Relate Accounts Production will now enable you to integrate the ICAI PQAs when producing sets of accounts. The ICAI PQAs are fully compliant with up to date Company Law, Accounting and Auditing Standards.

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Conal Kennedy, Electronic Procedure For Quality Audit (PQA) & Relate Accounts Production

  1. 1. Conal Kennedy, Head of Practice Consulting, ICAI January 2009 Procedures for Quality Audit 2009
  2. 2. Objectives of this presentation <ul><li>Present the PQAs </li></ul><ul><li>Paperless audit </li></ul>
  3. 3. The PQAs <ul><li>Quality Audits </li></ul><ul><li>Planning </li></ul><ul><li>Fieldwork </li></ul><ul><li>Completion </li></ul>
  4. 4. What’s new in the PQAs <ul><li>Fully integrated with RAP </li></ul><ul><li>Shorter planning section </li></ul><ul><li>Emphasis on risk </li></ul><ul><li>Extended highlights memorandum </li></ul><ul><li>Optional add-ons </li></ul>
  5. 5. Objective of an audit <ul><li>To enable auditors to give an opinion on financial statements… </li></ul><ul><li>to provide reasonable assurance that the financial statements give a true and fair view and have been prepared in accordance with law and accounting standards. </li></ul>
  6. 6. An Audit <ul><li>Getting it right on a budget. </li></ul><ul><li>Protect your client and protect yourself </li></ul><ul><li>Focus your work </li></ul>
  7. 7. Checklists <ul><li>Avoid checklist driven auditing </li></ul><ul><li>Checklist – endeavours to be comprehensive </li></ul><ul><li>Equal prominence to all tests </li></ul><ul><li>Comfort zone auditing? </li></ul><ul><li>Risk based auditing </li></ul>
  8. 8. Planning – Key Questions <ul><li>What do we know about the client? </li></ul><ul><li>What are the numbers telling us? </li></ul><ul><li>How does this affect our audit? </li></ul><ul><li>Links </li></ul>
  9. 9. Planning - Key Questions <ul><li>What is expected of the auditor? </li></ul><ul><li>Who is my client? </li></ul><ul><li>What is my overall approach? </li></ul><ul><li>What work will I do? </li></ul><ul><li>How will I perform and record the audit work? </li></ul><ul><li>When will I do it? </li></ul><ul><li>What can I cut down? </li></ul><ul><li>What can I leave out? </li></ul>
  10. 11. Understanding your client <ul><li>Make a list of the top five of each of the following </li></ul><ul><li>Suppliers </li></ul><ul><li>Customers </li></ul><ul><li>Staff members </li></ul><ul><li>Products </li></ul><ul><li>Competitors </li></ul><ul><li>Is all this documented on file? </li></ul>
  11. 12. PQAs and Risk <ul><li>Previous version of PQAs </li></ul><ul><li>Planning – series of standalone spreadsheets </li></ul>
  12. 13. PQAs and Risk <ul><li>Link between knowledge of client and risk </li></ul><ul><li>Link between the financial statements and risk </li></ul><ul><li>Business risk and audit risk </li></ul><ul><li>You should list at least five risks </li></ul><ul><li>Why five? </li></ul><ul><li>Link between risks and audit work </li></ul><ul><li>What work can I cut down or leave out? </li></ul>
  13. 15. PQAs on Excel <ul><li>Advantages of Excel </li></ul><ul><ul><li>Flexible </li></ul></ul><ul><ul><li>Can be linked to supporting schedules </li></ul></ul>
  14. 16. PQAs on Excel <ul><li>Disadvantages of Excel </li></ul><ul><ul><li>Electronic signatures </li></ul></ul><ul><ul><li>Deleted tests can vanish </li></ul></ul><ul><ul><li>Roll forward issues </li></ul></ul><ul><ul><li>Not fully paperless </li></ul></ul><ul><ul><li>Not a good word processor </li></ul></ul><ul><ul><li>Third party documents to go on file </li></ul></ul>
  15. 17. Fully paperless PQAs <ul><li>Populate lead schedules from trial balance </li></ul><ul><li>Version control </li></ul><ul><li>Amend tests </li></ul><ul><li>Link supporting documentation to the file </li></ul><ul><li>Control over suppressed tests </li></ul>
  16. 18. PQAs – other features <ul><li>Practical work programmes for each section </li></ul><ul><li>Aide memoir to address disclosure omissions </li></ul><ul><li>Client work programme </li></ul><ul><li>Call over programme </li></ul><ul><li>Audit exemption questionnaire </li></ul><ul><li>Expanded Significant Matters Memorandum </li></ul><ul><li>Risks revisited in Significant Matters Memorandum </li></ul>
  17. 19. The Disclosures Aide Memoir <ul><li>An Aide Memoir, not a checklist </li></ul><ul><li>Useable </li></ul><ul><li>Not comprehensive </li></ul><ul><li>References to main disclosure checklists </li></ul>
  18. 21. Questions? <ul><li>Thank you for your attention </li></ul>

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