What’s new - OnPoint PCR July 2024 Release (v1.3458.0)

The July 2024 release of OnPoint PCR features a more streamlined engagement experience for practitioners performing preparation, compilation and review engagements. Additionally, the GAAP presentation and disclosure checklists have been revised and the trial balance taxonomy has been updated to more closely align with the taxonomy included in the Dynamic Audit Solution (DAS).

The following information describes some of the significant highlights of this OnPoint PCR release:

1-100, Engagement set up

  • Updated the procedure for including leadsheets in the engagement file to only be visible for review engagements (leadsheets are now only available for review engagements to streamline preparation and compilation engagements).

  • Updated the procedure for viewing the presentation and disclosure checklists to only be visible if note disclosures are included with the financial statements.

1-115, Preparation - Engagement acceptance and conclusion

  • Removed the procedure for determining if the firm has the resources to complete the engagement, as it duplicates documentation included elsewhere.

  • Revised the partner or designee acknowledgement.

1-120, Compilation – Engagement acceptance and conclusion

  • Removed the procedure for determining if the firm has the resources to complete the engagement, as it duplicates documentation included elsewhere.

  • Revised the partner or designee acknowledgement.

1-125, Review – Engagement acceptance and conclusion

  • Moved the procedure for using the work of others to 2-400, Review – Overall analysis.

  • Removed the procedures for the firm’s and/or engagement team’s experience with the industry.

  • Removed the procedure for determining if the firm has the resources to complete the engagement, as it duplicates documentation included elsewhere.

  • Revised the partner or designee acknowledgement.

1-225, Review – Engagement letter – Draft

  • Revised the item under “Your Responsibilities” for the preparation and fair presentation of financial statements in accordance with a financial reporting framework other than US GAAP.

2-200, Understanding the entity

  • Condensed content to focus solely on the understanding required for a review engagement and to eliminate repetition of information documented in other parts of the engagement file.

  • Document now only applies to review engagements.

2-400, Review – Overall analysis

  • Added the procedure for using the work of others and removed it from 1-125, Review – Engagement acceptance and conclusion.

  • Reordered and revised the procedures to more closely follow the underlying authoritative literature and improve workflow.

3-125, Using the work of others

  • Added a procedure when referencing the work of other accountants in an accountant's review report.

Fieldwork

  • Removed the leadsheets for preparation and compilation engagements (documents A.115 through 4115).

  • Revised all ratios to be consistent with taxonomy changes.

4-200, Financial Statements set up

  • Revised the procedure for including a disclaimer in a preparation engagement when the “no assurance is provided” footer is not included on each page of the financial statements.

4-250, Financial Statements and Report

  • Revised the disclaimer paragraph for preparation engagements to address situations when the statement of cash flows and/or note disclosures required by the applicable financial reporting framework are omitted.

  • Revised the discussion of management’s responsibilities in the compilation and review reports when the financial statements are prepared in accordance with a financial reporting framework other than US GAAP to address management’s responsibility for determining that the applicable financial reporting framework is acceptable in the circumstances.

  • Expanded the compilation and review reports to provide for separate disclosures when there is a known departure from the applicable financial reporting framework, depending on whether the effects of the departure have been determined by management or are readily known to the accountant.

  • Added an other matter paragraph to the review report to allow for situations when the accountant considers it necessary to communicate certain matters to the users of the financial statements.

  • Added a paragraph to the review report to address situations when the accountant references the work of other accountants.

  • Revised the emphasis of matter paragraph in the review report.

  • Added a restricted use paragraph to the review report.

4-3XX, Presentation and disclosure checklists

  • Updated for recently issued Accounting Standards Updates (ASUs).

5-115, Preparation – Engagement completion

  • Added a procedure for obtaining an understanding of the financial reporting framework and significant accounting policies.

  • Revised the partner or designee conclusion.

5-120, Compilation – Engagement completion

  • Revised the procedures in the prior section titled, “Client Acceptance of Financial Statements and Journal Entries if Independent” and renamed the section to “Agreement on Engagement Terms”.

  • Moved the procedure for obtaining knowledge and understanding of the entity’s financial reporting framework from 2-200, Understanding the entity.

  • Added procedures to address AU-C 80.15 and .16 for compilation procedures.

  • Removed the going concern procedure and the procedure for the omission of substantially all disclosures as the topics are addressed in another document.

  • Added a procedure to document known departures from the financial reporting framework and to determine whether modification of the standard report is adequate to disclose the departure.

  • Revised the partner or designee conclusion.

  • Moved the engagement quality control review procedures to a new form, 5-400, EQCR Conclusion to improve workflow.

5-125, Review – Engagement completion

  • Streamlined the procedures for revisions to materiality.

  • Revised the partner or designee conclusion.

  • Moved the engagement quality control review procedures to a new form, 5-400, EQCR Conclusion to improve workflow.

5-220, Compilation – Reporting checklist

  • Revised the procedures for a departure from the applicable financial reporting framework.

5-225, Review – Reporting checklist

  • Added a procedure for restatement to correct a material misstatement in previously issued financial statements.

  • Added a procedure for subsequent events.

  • Added a procedure for issuing an updated report.

  • Revised the procedures for a qualified conclusion.

  • Revised the procedures for an adverse conclusion.