What's new in Audit International v2023.1.0 (2.660)

This version of Audit International Cloud includes the changes and new requirements in ISA 220 (Revised), Quality Management for an Audit of Financial Statements and ISQM 2, Engagement Quality Reviews. The updates are intended to clarify the responsibilities of the auditor regarding quality management at the engagement level for an audit of financial statements and the related responsibilities of the engagement partner.

Here’s what’s new in Audit International Cloud v2023.1.0 (2.660).

Content updates

Partner and manager summary

To streamline review work, a new Partner and manager summary document has been added. It gathers key engagement information from across multiple phases of the engagement such as Planning, Risk Assessment and Response, Fieldwork and Completion.

The Partner and manager summary document provides an overview of the following information:

• Financial information.

• Overall engagement information.

• Sign-off status on specific documents.

• Risk and controls information.

• Proposed audit responses overviews per Work Program.

• Work Program custom conclusions.

• Issues raised and the corresponding status.

• Adjustments posted.

• Documents modified after sign-off.

New worksheets

To assist auditors with identifying risks and going concerns, the following optional worksheets have been added:

• A230 - Worksheet - Engagement Risk Factors.

• A415 - Worksheet - Inherent risk factors

• B225 - Worksheet - Understanding climate related issues on the entity.

• B230 - Worksheet - Understanding the revenue streams of the entity.

• B610 - Going Concern Considerations.

Workflow and usability improvements

To improve the overall workflow and usability of Audit International Cloud, the following changes have been made:

• B410. Worksheet - Minutes of governance meetings:

  • The content in the B415. Worksheet - Minutes of governance meetings document was merged into B410. Worksheet - Minutes of governance meetings.

  • You are now able to document all matters related to minutes of governance within the same document, which assists in both the documentation and review process.

• B600. Going concern identification:

  • The B600. Specific areas document has been renamed to B600. Going concern identification.

  • Procedures not related to going concern have been moved to either B200 Understanding the entity and its environment or C100 Audit response to assessed risks.

• 200.101 Equity:

  • The content in the 200.102 Equity (Partnership) document was merged into 200.101 Equity.

  • Auditors now have a single work program where the tailoring questions use visibility conditions and appear at the beginning of the document to ensure that only the applicable procedures display.

• D610. Reporting checklist:

  • The content in the D605. Optimiser - Reporting checklist document was merged into D610. Reporting checklist.

  • You can now rely on a single checklist where the tailoring questions rely on visibility conditions and appear at the beginning of the document to ensure that only applicable procedures display.

• The following letters have been removed:

  • A225L Letter to a successor accounting firm.

  • A310L Hiring an external audit expert.

  • A5.2-1L Inventory consigned to others confirmation.

  • A5.2-2L Inventory consigned to others confirmation - Sample response letter.

  • A6.1L Inventory held at outside locations inquire.

  • A5.1L Accounts receivable confirmation.

  • A5.3L Long-term debt confirmation.

List of updated documents

Document number	Document name	Changes
A200	Preliminary engagement activities	Document guidance. Major procedure changes. New procedures.
A200Q	Request - Engagement letter	Major procedure changes.
A205L	Terms of engagement - Engagement letter - Draft	Minor changes.
A210Q	Request - Letter to predecessor accountant	Document guidance. Major procedure changes.
A215L	Letter to a predecessor accounting firm - Draft	Minor changes.
A225L	Letter to a successor accounting firm	Removed.
A230	Worksheet - Engagement Risk Factors	New document.
A305	Worksheet - Selecting an auditor’s expert	Minor procedures changes.
A310L	Hiring an external audit expert	Removed.
A300	Overall audit strategy	Document guidance. Major procedure changes. New procedures.
A320	Worksheet - Understanding and evaluation of the internal audit function	Minor procedure guidance changes.
A325Q (previously A325)	Engagement expert - Query	Moved from external document to query.
A340Q	Audit planning letter – Those charged with governance - Query	New document.
A350L	Firm deliverables and client information letter - Draft	Updated guidance. Minor changes.
A355Q (previously A345Q)	Overall client information request	Document guidance. Changed document number.
A400	Team planning discussions	Document guidance. Major procedure changes. New procedures.
A405	Preparing the risk assessment procedures	Major procedure changes.
A415	Worksheet - Inherent risk factors	New document.
B200	Understanding the entity and its environment	Minor procedure guidance change.
B200Q	Understanding the entity and its environment - Query	Document guidance.
B225	Worksheet - Understanding climate related issues on the entity	New document.
B230	Worksheet - Understanding the revenue streams of the entity	New document.
B300	Underst. of the comp. of the entity's system of internal control	Minor procedures changes.
B300Q	Underst. of the comp. of the entity's system of internal control Query	New document.
B350	Controls report	New document.
B400	Assessment of RMM (including Fraud Risks)	New procedure.
B410	Worksheet - Minutes of governance meetings	New procedures.
B415	Worksheet - Minutes of governance meetings	Merged into B410.
B450 (prev. B700)	Risk report	Document renumbered.
B600	Going concern identification	Deleted procedures. Added new procedures.
B610	Going concern considerations	New document.
C100	Audit response to assessed risks	Major procedure changes.
C105Q	Request for records and documents	Document guidance. Major procedure changes.
C110	Responding to risk at the financial statement level	Major procedure changes.
C155	Documenting consultation	Document guidance. Minor procedure changes.
C205	Group audit - Acceptance and planning	Major procedure changes.
C220	Worksheet - EQR checklist - Group audits involving component auditors	Document guidance. Minor procedure changes.
1.101Q	Property, plant and equipment - Query	Document guidance. Major procedure changes.
5.101Q	Investment property - Query	Document guidance. Major procedure changes.
10.101Q	Intangibles and goodwill - Query	Document guidance. Major procedure changes.
20.101Q	Long-term Investments - Query	Document guidance. Major procedure changes.
35.101Q	Loans and advances receivable - Query	Document guidance. Major procedure changes.
40.101Q	Agricultural Assets - Query	Document guidance. Major procedure changes.
110.101Q	Inventory - Query	Document guidance. Major procedure changes.
110.125	Worksheet - Inventories - Substantive sampling - Tests of details	New procedures.
A5.2-1L	Inventory consigned to others confirmation	Removed.
A5.2-2L	Inventory consigned to others confirmation - Sample response letter	Removed.
A6.1L	Inventory held at outside locations inquiry	Removed.
120.101Q	Investments - Query	Document guidance. Major procedure changes.
130.101Q	Accounts receivable, trade and other - Query	Document guidance. Major procedure changes.
130.125	Worksheet - Receivables, current - Substantive sampling - Tests of details	New procedures.
A5.1L	Accounts receivable confirmation	Removed.
135.101Q	Prepaid expenses and other assets - Query	Document guidance. Major procedure changes.
140.101Q	Cash - Query	Document guidance. Major procedure changes.
200.101	Equity	Major procedure changes.
200.101Q	Equity - Query	Document guidance. Major procedure changes.
200.102	Equity (Partnership)	Merged into 200.101.
200.102Q	Equity (Partnership) - Query	Merged into 200.101Q.
300.101Q	Long-term debt - Query	Document guidance. Major procedure changes.
A5.3L	Long-term debt confirmation	Removed.
325.101Q	Income taxes - Query	Document guidance. Major procedure changes.
330.101Q	Loans and advances payable - Query	Document guidance. Major procedure changes.
335.101Q	Government Grants - Query	Document guidance. Major procedure changes.
340.101Q	Leases for Lessees - Query	Document guidance. Major procedure changes.
400.101Q	Notes payable and bank debt - Query	Document guidance. Major procedure changes.
425.101Q	Accounts payable and accrued liabilities - Query	Document guidance. Major procedure changes.
425.125	Worksheet - Payables - Substantive sampling - Tests of details	New procedures.
1500.101Q	Revenues - Query	Document guidance. Major procedure changes.
1500.125	Worksheet - Revenues - Substantive sampling - Tests of details	New procedures.
1600.101Q	Cost of sales - Query	Document guidance. Major procedure changes.
1600.103	Worksheet - Cost of sales - Substantive sampling - Tests of details	New procedures.
1600.105Q	Payroll and other expenses - Query	Document guidance. Major procedure changes.
1600.107	Worksheet - Payroll and other exp. - Substantive sampling - Tests of details	New procedures.
1700.101Q	Other income - Query	Document guidance. Major procedure changes.
1800.101Q	Other expenses - Query	Major procedure changes.
D305	Worksheet - Engagement quality control review checklist	Document guidance. Major procedure changes.
D350	Partner and manager summary	New document.
D360 (Prev. B310)	Key audit matters	Guidance updated. Document renumbered.
D500Q	Client deliverables queries	New document.
D505	Worksheet - Matters to be communicated to management and TCWG	Major procedure change.
D510	Communications to be made by the auditor with TCWG and management	Major procedure change.
D515L	Management letter - Draft	Minor changes.
D520L	Report for those charged with governance	Document guidance.
D530L	Communicating deficiencies in internal control letter - Draft	Minor changes.
D450Q	Request - Management representation letter	Document guidance. Major changes.
D600	Audit completion	Minor changes.
D605	Optimiser - Reporting checklist	Merged into D610.
D610	Reporting checklist	Major procedure changes.
D615	Documentation checklist	Major procedure changes.
D625	Checklist - Audit completion (Core)	Document guidance. Major procedure changes.
D630	Worksheet - Withdrawal	New document.

New queries layout

Audit International Cloud now includes a new query layout with an enhanced look and feel.

Control report

To streamline your risk and controls reporting, we’ve enhanced and renamed the Risks page to the Risk & controls page. The updated Risk & controls page includes a new controls report that you can access from the Controls tab. The report allows you to easily document controls by ensuring compliance and support for audit documentation requirements are met.