DAS procedure integration

Caseware Sherlock captures response data from various DAS procedures in the following documents:

  • EL-1 Engagement Setup

  • GP-3 Accounting standards update disclosure optimizer

  • GP-5 Audit strategy

  • GP-30 Planning communications with TCWG optimizer

  • UE-20 Fraud interviews

  • UE-25 Going concern understanding

Once captured, the response data will appear in the following format:

  • {"config":{},"value":"{\"<procedure>\":\"<response>\"}"}

Procedures

The following table describes the procedure response data that is captured by Sherlock.

Document Procedure
EL-1 Engagement Setup

  • Auditing standards

  • Entity's industry

  • Financial reporting framework

  • What type of insurance company?

  • What type of real estate entity?

  • What type of presentation will be shown on the Balance Sheet?

  • Used for central planning

  • Entity's legal structure

  • Entity an IDI under FDICIA (Total Assets≥$500M)

  • Entity an IDI under FDICIA (Total Assets≥$1B)

  • HUD Compliance documents -Government National Mortgage Association

  • HUD Compliance documents Federal Housing Administration (FHA)

  • Type of lender

  • What type of private investment fund is the entity?

  • Is the fund part of a Master-Feeder structure?

  • Is the fund registered with the Cayman Islands Monetary Authority?

  • Type of tax-exempt organization

  • Does the entity have for profit subsidiaries

  • Subject to HUD UFRS (24 CFR Part 5 Subpart H)

  • Use Group Project-Based Sampling per HUD Guide

  • Federal awards ≥$750K requiring single audit?

  • Federal awards ≥$1M requiring single audit?

  • Subject to Government Auditing Standards (Yellow Book)

  • Issue GAGAS Internal Control & Compliance Report

  • Verify peer review report provided or publicly available

  • Prior relevant audit findings identified

  • Will the engagement team be confirming receivables?

  • Evaluate and document corrective actions relevant to current audit objectives

  • Ceded or retroceded reinsurance program

  • Financial statement includes the financial information of more than one entity or business unit

  • Will this engagement file be used to perform procedures as a component auditor?

  • Select procedures per group auditor instructions

  • Cycles requiring understanding (UE-1/IC-1 applicable)

  • Is the entity a start-up?

  • Is the entity pre-revenue or post-revenue?

  • Is the audit required by law or regulation?

  • Auditor's understanding of the laws and regulations

  • Communicate key info to clients and oversight committees

  • Are comparative financial statements being presented?

  • Prior conditions raised going concern doubt

  • Are consolidated or combined financial statements being presented?

  • Does the entity have an internal audit function?

  • Will the internal audit function be used to provide or obtain audit evidence?

  • What type of member(s), partner(s), or investor(s) own equity shares in the entity?

  • Does the entity have multiple members with equity shares?

  • Does the entity have multiple partners with equity shares?

  • Audit under GAAS and other standards

  • Internal control over financial reporting

  • Will the audit report address other reporting responsibilities?

  • Identify reference to statutory accounting principles

  • Audit report to address other reporting responsibilities

  • KAMs required in audit report

  • Management provided ICFR effectiveness assessment

  • Management limited ICFR assessment (e.g., exclude certain entities)

  • Evaluate appropriateness of management's ICFR limitation

  • Communicate with those charged with governance and request the limitation be removed

  • As a result of the scope limitation, auditor will...

  • Due to management's refusal or scope limitation, auditor will...

  • Communicate inability to complete ICFR audit

  • Perform control testing at interim date

  • Document how remaining-period control evidence will be obtained

  • HUD audit: combined or separate compliance report

  • Will a separate schedule of investments be presented?

  • Will the schedule of investments be presented as condensed?

  • Entity has other comprehensive income

  • How is OCI presented in the financial statement?

  • How will net assets be presented in the financial statements?

  • Will a statement of functional expenses be presented in the financial statements?

  • Will a statement of cash flows be presented in the financial statements?

  • Content in FS-1 Financial statements and report that will be used

  • How does the entity refer to its statutory financial statements?

  • The name of financial position statement

  • The name of financial position statement (2)

  • The name of operations statement

  • The name of operations statement (2)

  • The name of other comprehensive income statement

  • The name of activities statement

  • The name of net assets

  • The name of equity statement

  • Modify or customize financial statement names

  • Is management preparing supplementary information?

  • Has the auditor been engaged to opine on supplementary information?

  • Use supplementary info schedules in FS-1

  • Modify or customize "Supplementary Information" name

  • Supplementary information name

  • Framework requires supplementary information (RSI)

  • Is there other information that accompanies the financial statements?

  • Nonattest services performed or considered

  • Other attest services performed or considered

  • Other attest services performed

  • AUP part of HUD audit for Multifamily/FHA lenders

  • Firm policies require engagement quality review

  • In what year did the company begin operations?

  • Who are the principal members of management?

  • Who are those charged with governance (details)?

  • Who does the entity work with?

  • What is the entity's web presence?
GP-3 Accounting standards update disclosure optimizer

  • Adoption of ASU 2023-02

  • When did the entity adopt ASU 2023-02?

  • When did the entity adopt ASU 2016-13?

  • When did the entity adopt ASU 2022-02?

  • Adoption of ASU 2025-05

  • When did the entity adopt ASU 2025-05?

  • When did the entity adopt ASU 2017-04?

  • Has the entity adopted ASU 2025-06?

  • When did the entity adopt ASU 2025-06?

  • Adoption of ASU 2023-08

  • When did the entity adopt ASU 2023-08?

  • Adoption of the amendment on rollforward information in ASU 2022-04

  • Adoption of ASU 2024-04

  • When did the entity adopt ASU 2024-04?

  • Adoption of ASU 2024-01

  • When did the entity adopt ASU 2024-01?

  • Adoption of ASU 2023-09

  • When did the entity adopt ASU 2023-09?

  • Adoption of ASU 2021-08

  • Adoption of ASU 2023-05

  • When did the entity adopt ASU 2023-05?

  • Adoption of ASU 2022-01

  • When did the entity adopt ASU 2022-01?

  • Adoption of ASU 2022-03

  • When did the entity adopt ASU 2022-03?

  • Adoption of ASU 2023-01

  • When did the entity adopt ASU 2023-01?

  • Adoption of ASU 2020-06

  • When did the entity adopt ASU 2020-06?

  • Adoption of ASU 2024-02

  • When did the entity adopt ASU 2024-02?

  • Adoption of ASU 2025-03

  • When did the entity adopt ASU 2025-03?

  • Adoption of ASU 2025-04

  • When did the entity adopt ASU 2025-04?

  • Has the entity adopted ASU 2025-07?

  • When did the entity adopt ASU 2025-07?
GP-5 Audit strategy

  • Identify the audit team members assigned and their roles

  • Confirmation of CPE compliance under Yellow Book

  • Identify technology and intellectual resources for the audit

  • Assign experienced team members to high-risk areas and ensure proper supervision

  • Determine the engagement budget, audit fees and estimated hours

  • Entity's reporting deadline

  • Plan to test operating effectiveness of entity-level and/or process level controls

  • Which cycle(s) does the engagement team plan to rely upon controls to reduce control risk?

  • Has management used a specialist in preparing the financial statements?

  • Use of management specialist's work as audit evidence

  • Cycles using management specialist's evidence

  • Does management use a specialist that is NOT related to an estimate?

  • Identify the cycles for which management is using a specialist that is not related to an estimate

  • Planned use of auditor's specialist for non-accounting expertise

  • Cycles using auditor's specialist for non-accounting expertise

  • Use of service organization for outsourced operations

  • Cycles using service organization

  • Use the work of other auditors in compliance engagement

  • Areas using other auditors' work in compliance engagement

  • Evaluate other auditor's competence and capacity in compliance engagement

  • Clarify responsibilities and expectations for other auditors, including scope, timing, and required communications regarding the compliance audit

  • Obtain written acknowledgment of other auditors' compliance with instructions and standards

  • Determine the work to be performed by the engagement team or other practitioners

  • Use of other practitioners' work

  • Change in engagement terms

  • Obtain an understanding of the other practitioners' ability to comply with relevant ethics requirements

  • Obtain an understanding of the other practitioners' professional competence

  • Communicate engagement scope, timing, and findings to other practitioners

  • If assuming responsibility for the work of other practitioners, be involved in their work

  • Evaluate adequacy of other practitioners' work for the engagement

  • Decide on referencing other practitioners' work in report

  • Obtain approval from the engaging party to use the assistance of a practitioner's external specialist on the engagement
GP-30 Planning communications with TCWG optimizer

  • Method of governance communication

  • DAS letter template or custom communications

  • Governance involvement in management

  • Who are those charged with governance?

  • Subgroup or committee for governance communications

  • Who is included in the subgroup(s) of those charged with governance?

  • Need to communicate with the full governing body

  • Document the name, title, and contact information for the key individuals

  • Communications to those charged with governance

  • Management's communication of all required audit matters to those charged with governance

  • Obtain and include management's communications in the audit documentation, and use annotations to reference the related workpaper location

  • Was the auditor a part of the discussion?

  • Adequacy of two-way communication with those charged with governance

  • Verbal communications with those charged with governance - planning

  • Written communications with those charged with governance - planning
UE-20 Fraud interviews

  • Fraud Risk Summary

  • Are all of those charged with governance also involved in managing the entity?

  • Fraud risk charged with governance summary

  • Fraud risk internal audit summary

  • Need for internal inquiries

  • Fraud risk discussion summary
UE-25 Going concern understanding

  • Management's going concern evaluation

  • Management identification of risks to meeting obligations within one year

  • Describe the conditions and/or events identified by management's evaluation

  • Auditor's evaluation of conditions affecting the entity's ability to meet obligations within one year

  • Describe the conditions and/or events identified by the auditor's evaluation

  • Liquidation basis of accounting is appropriate