What's new in Audit International v2022.1.0

This version of Audit International Cloud includes the changes and new requirements in ISA 315 (Revised 2019) which are intended to clarify and assist auditors in identifying and assessing risks of material misstatement more consistently and robustly. As a result of these changes and new requirements, updates were made to Audit International Cloud.

Here is what’s new in Audit International v2022.1.0.

Content update

Audit plans and procedures work programs

The following changes were implemented to all Financial Area work programs in the Plans and Procedures folder, with document reference X.101:

• Document guidance:

  • Updated the document guidance to provide clearer guidance on determining audit procedures as well as instructions on how to complete the Work Program.

• Detailed audit response:

  • New group added including two subgroups:

    1. Audit Response Considerations: New procedures to assist designing the audit response.

    2. Audit Response Table: New table added to assist documenting the appropriate nature and extent of audit procedures to address each relevant assertion.

• Grouping changes:

  • Groups A. SUBSTANTIVE PROCEDURES - BASIC and B. SUBSTANTIVE PROCEDURES - EXTENDED were merged into SUBSTANTIVE PROCEDURES.

  • Group C. SUBSTANTIVE ANALYTICAL PROCEDURES was renamed to SUBSTANTIVE ANALYTICAL PROCEDURES.

  • New group TESTS OF CONTROLS and new procedures added.

• Entity appointed experts procedure:

  • Updated the procedure’s response set to Firm has SUFFICIENT expertise / Firm has INSUFFICIENT expertise / N/A to better align with the procedure’s requirements.

• Evaluation of entity appointed expert work procedure:

  • Updated the procedure Visibility Conditions to be dependent on the response to procedure “Entity appointed experts”. The procedure will now display if the response to procedure “Entity appointed experts” is set to Firm has INSUFFICIENT expertise.

• Accounting estimates:

  • Visibility Settings in the ACCOUNTING ESTIMATES Group are now driven by the selections in B200 Understanding the entity and its environment, procedure Key elements of the auditor’s understanding of the entity and its environment.

Response set changes

The Manual response set was replaced with Procedure Input Notes for all Financial Area work programs in the Plans and Procedures folder, as well as for all other checklists which had a combined Picklist and Manual response set. This change provides greater efficiency when responding to procedures and leveraging the automated signoff functionality.

Additionally, all checklists with a Done / Not Done / N/A response set, were replaced with a response set tailored to the procedure text to improve documentation when responding to procedures and reviewing procedures responses.

Substantive analytical procedures worksheets

Substantive analytical procedures worksheets were added to all Financial Areas in the Plans and Procedures folder.

The objective of these practice aids is to plan and perform a substantive analytical procedure.

Tests of controls worksheets

Tests of controls sampling worksheets were added in the Tests of Control folder under the Risk Response folder, for the following Business Cycles:

• C050 Worksheet - Sampling - Tests of controls - Revenues, receivables, receipts

• C055 Worksheet - Sampling - Tests of controls - Purchases, payables, payments

• C060 Worksheet - Sampling - Tests of controls - Payroll

• C065 Worksheet - Sampling - Tests of controls - Financial reporting

• C070 Worksheet - Sampling - Tests of controls - Investments

• C075 Worksheet - Sampling - Tests of controls - Inventory

• C080 Worksheet - Sampling - Tests of controls - Treasury

• C090 Worksheet - Tests of controls - Financial statement level controls

The objective of these practice aids is to provide guidance on the use of tests of controls in evaluating the operating effectiveness of controls.

Group audit content

The following group audit related documents have been updated to remove older group audit content:

• C205 Group audit - Acceptance and planning: (previously C170)

• C210 Group audit - Communication: (previously C180)

• C215 Group Audit - Evaluation and conclusion: (previously C190)

• C205 Worksheet - Consolidation completion: (removed)

• C220 Worksheet - EQR checklist - Group audits involving component auditors: (previously C210)

• C215 Worksheet - Group audit - Overall strategy: (removed)

• C220 Worksheet - Group audit - Group audit plan: (removed)

• C240 Worksheet - Group audit - Preparation of group audit instructions (removed)

List of updated documents

Document Number Cloud	Document Name	Changes
A100	Optimiser checklist - Initial Engagement Decisions	Minor procedure changes
A200	Preliminary engagement activities	Minor procedure changes
A300	Overall audit strategy	Major procedure changes
A315	Worksheet - Understanding and evaluation of a service organisation	Minor procedure changes
A320	Worksheet - Understanding and evaluation of the internal audit function	Major procedure changes
A400	Team planning discussions	Major procedure changes
A405	Preparing the risk assessment procedures	Major procedure changes
A410 (new form)	Worksheet - Fraud scenarios	New document format
A505	Materiality of qualitative disclosures	New document
B200	Understanding the entity and its environment	Major procedure changes
B205	Understanding the entity and its environment - Industry, regulatory, and other external factors	Major procedure changes
B210	B210 Understanding the entity and its environment - Nature of the entity	Major procedure changes
B215	Understanding the entity and its environment - Selection and application of accounting policies and financial reporting matters	Major procedure changes
B220 (removed)	Understanding the entity and its environment - Objectives, strategies, and related business risks	Removed (procedures combined into B210)
B220 (previously B225)	Understanding the entity and its environment - Measurement and review of the entity's financial performance	Minor procedure changes
B250	Worksheet - Understanding accounting estimates	Minor procedure changes
B260	Worksheet - Outcome of prior period accounting estimates	Minor procedure changes
B300	Understanding of the entity's controls	Major procedure changes
B305	Understanding the IT Environment	Minor procedure changes
B310	Understanding the IT environment - Listing	Minor procedure changes
B315	Entity level risks and controls (Core)	Major procedure changes
(New form)		Major procedure changes
B320	General IT Controls	Minor procedure changes
B325	B325 Worksheet - Control implementation - Business process controls	Minor procedure changes
B330 (new form)	Worksheet - Information flow - Business process	New document
B400	Assessment of RMM (including Fraud Risks)	Major procedure changes
B405	Identifying fraud risks	Major procedure changes
B410	Worksheet - Minutes of governance meetings	Minor procedure changes
B600	Specific areas	Major procedure changes
C100	Audit response to assessed risks	Major procedure changes
C110	Responding to risk at the financial statement level	Major procedure changes
C115	Worksheet - Going-concern evaluation	Major procedure changes
C135	Subsequent events (Core)	Minor procedure changes
C140	Worksheet - Related party transactions (Core)	Minor procedure changes
C150	Statement of cash flows - Audit procedures	Major procedure changes
1.101	Property, plant and equipment - Audit procedures	Minor procedure changes
5.101	Investment property - Audit procedures	Minor procedure changes
20.101	Long-term investments - Audit procedures	Minor procedure changes
35.101	Loans and advances receivable - Audit procedures	Minor procedure changes
40.101	Agricultural assets - Audit procedures	Major procedure changes
40.110 (new form)	Agricultural assets count checklist	New document
110.101	Inventory - Audit procedures	Major procedure changes
110.110	Inventory count checklist	Major procedure changes
120.101	Investments - Audit procedures	Minor procedure changes
130.110	Accounts receivable confirmation - Supplementary procedures	Major procedure changes
300.101	Long-term debt - Audit procedures	Major procedure changes
335.101	Government grants - Audit procedures	Major procedure changes
340.101	Leases for lessees - Audit procedures	Major procedure changes
425.110	Accounts payable confirmation - Supplementary procedures	Major procedure changes
1600.105	Payroll and other expenses - Audit procedures	Major procedure changes
1700.101	Other income	Major procedure changes
1800.101	Other expenses	Major procedure changes
D100	Evaluation of misstatements identified	Minor procedure changes
D300	Evaluation of Work Performed by others involved in the Audit	Major procedure changes
D305	Worksheet - Engagement quality control review checklist	Minor procedure changes
D500	Communications with Management/TCWG	Minor procedure changes
D505	Worksheet - Matters to be communicated to management and those charged with governance	Major procedure changes
D510	Communications to be made by the auditor with those charged with governance and management	Major procedure changes
D600	Audit completion	Major procedure changes
D610	Reporting checklist	Minor procedure changes
D615	Documentation checklist	Major procedure changes
D625	Checklist - Audit completion (Core)	Minor procedure changes

Risk Assessment

The following Risk Assessment functionalities were added to address the changes and new requirements in ISA 315 (Revised 2019):

Inherent Risk (IR):

• LMO: Likelihood of Misstatement Occurring:

  • Assessment scale: 3

    • Low (L)

    • Medium (M)

    • High (H)

• MPM: Magnitude of Potential Misstatement:

  • Assessment scale: 3

    • Low (L)

    • Medium (M)

    • High (H)

• Inherent Risk Automation:

  

Risk of Material Misstatement (RMM):

• Assessment scale:

  • Insignificant: I

  • Low: L

  • Medium: M

  • High: H

  • Significant: S

• RMM Automation:

  

Business Cycles

The following Business Cycles were added:

• Revenue, Receivables, Receipts

• Purchases, Payables, Payments

• Payroll

• Financial Reporting

• Investments

• Inventory

• Treasury

New Roles and Schemes

A new Partner role was created and assigned the Review workflow.

A new Partner review scheme was created with the following details:

• Preparer role:

  • Prepared by

• Reviewer role:

  • Reviewed By

  • Partner

The Partner review scheme was assigned to the following documents:

• C205 Group audit - Acceptance and planning

• C215 Group Audit - Evaluation and conclusion

• D625 Checklist - Audit completion

The Preliminary and final scheme was assigned to the following documents:

• A500 Materiality

• A505 Materiality of qualitative disclosures

• B500 Risk Assessment Report

• B700 Risk report