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PEG - Content Updates (Audit)

The PEG Audit template has been updated to include the latest features from Audit 24.00.

Most of the changes and new requirements in CAS 315 are intended to help auditors consistently identify and assess risks of material misstatement (RMM). What has not changed is the audit risk model and the objective to identify and assess RMM at the financial statement and assertion levels, whether due to fraud or error, to help design your audit response.

Known issues

  • When creating a new control in an updated client file from the Control dialog, the option to select items under IT Layer and IT Process may not display. To resolve this issue:
    1. Open AO - General options in the client file. If the document appears blank, close and reopen it.
    2. Click the reload button for the Default profile, located at the bottom of the document.
    3. Click the reload button for the profile that the file should use.
  • Due to the removal of guidance text from Forms A.110, A.115, C.110 and CC.110, the forms open with an empty guidance section after the content update. You can disable the guidance section from Options | Display Document Guidance.
  • Due to the renumbering of Form 706 to Form 580, the form remains in the previous location (on updated client files in the Document Manager, under Revenues). You must move the form manually to the new location under the folder Risk Identification and Assessment.
  • During the update, Forms 550C and 420C may not be deleted from the file. The forms are condensed forms and should be manually deleted from the file.
  • Form MAP has been updated in the master template, but does not update during a client file update. To update the form, either import a new copy from the Document Library of the master template, or copy the updated form from your Knotia PEG subscription into the client file.

Form updates

The following describes the content updates to PEG forms, with an explanation of why changes were made.

New forms

Form Numbers Description
312 New form to address quality management requirements in revised CAS 220 focusing on the responsibilities of the engagement partner.
511, 511-1 New form designed to help the auditor obtain an understanding of the entity's IT environment and assess its impact on the design of further audit procedures.
530 Previous form has been deleted and replaced with a new form. The form now only contains the three pervasive components of the system of internal control (control environment, risk assessment process and monitoring process).
535, 535-1 New forms designed to obtain an understanding of, and document the entity’s information system and communication.
551 New form designed to address the revised CAS 315 requirements to identify the IT applications and other aspects of the entity's IT environment that are subject to risks arising from the use of IT and the general IT controls that address such risks.
Toolkit forms - 501, 511, 535, 540, A550, 551, 590, 655 New PEG forms.
001 Added the combined index.

Deleted forms

Form Numbers Description
405C, 410C, 430C, 455C, 436C, 436C-1, 505C, 513C, 510C, 510C NFP, 530C, 540C, 545C, 545C NFP, 550C NFP 550C, 555C, 560C, 605C, 001C, 420C, 513C, 520C, 522C

Condensed versions of audit forms for standard and NFP audits have not been updated for the revised CAS 315 and have been removed from PEG Audit.

405

Content of the form has been moved to Forms 408 and 410.

455

Content has now been incorporated into other PEG forms.

437

Content has now been incorporated into required Form 506.

530

Previous form has been deleted and replaced with a new form.

531

Since revised CAS 315 does not require an evaluation of entity-level controls, this form has been removed.

565

Content of the form has been moved to Forms 550 and 551.

570

Content of the form has been moved to Forms 550 and 551

618

Since revised CAS 315 does not require an evaluation of entity-level controls, this form has been removed.

000, 001 NFP

Combined forms with Form 001.

521

Form now combined with revised Form 520.

522

Since revised CAS 315 does not require an evaluation of entity-level controls, this form has been removed.

590-1 FSL, 590-2 AL, 590 PREVIOUS

Responses to financial statement level risks are now addressed on Form 520.

Forms with major revisions

Form Numbers Description
FSA

Updated guidance, updated RMM automation calculation for the revised CAS 315 requirements.

ONEFORM

Removed/added forms based on changes in PEG Audit, updated with the revised CAS 315 and CAS 220 documentation requirements.

506

Now a core form. Part A includes required inquiries, some of which were previously in Form 505. Part B outlines other procedures and possible lines of inquiry.

510 / 510 NFP

Added a new section to address the accounting policies and financial statement disclosures used by the entity. Some areas of understanding, such as estimates, IT, going concern, fraud and related parties have been removed to avoid duplication, as these areas of understanding have their own forms.

520E

Added the Inherent Risk Factor Description field, removed the What Can Go Wrong field, and updated the RMM calculation for the revised CAS 315 requirements.

Forms with moderate revisions

Form Numbers Description
400

Removed a procedure regarding condensed forms, removed condensed forms and form renumbering from existing forms.

408

Now a core form. Amalgamated content from Form 405 on new client acceptance with the audit work required on initial engagements.

410

Incorporated content from Form 405 and updated existing content for the requirements on client acceptance in CSQM 1.

436

Added additional responsibilities of the engagement partner, updated with the revised CAS 315 requirements.

500

Now a worksheet. Updated preliminary analytical procedures.

505

Now a worksheet and no longer contains any required inquiries of management/TCWG. This worksheet can be used to document inquiries with others responsible for matters such as sales, marketing, purchasing, IT and other key activities of the entity.

670

Moved the understanding of journal entries section to Form 535 so it can be done at the risk assessment phase. Updated the attributes to consider when selecting journal entries for testing.

1 (Overview)

Replaced document based on updated CPA Canada content.

Forms with minor revisions

Form Numbers Description
420, 430, 508, 515, 575, 606, 610, 625, 630, 635 Series, 645, 666, 680

Updated references within the forms.

A to ZZ, 705 to 735, SUP1, SUP2

Updated references within the forms.

706 (Renumbered to 580)

Renamed to Form 580. Updated references within the form.

310

Updated part 2, partner conclusion, with the requirements of revised CAS 220 and moved to its own form (Form 312).

501

Now a core form.

513

Updated with the requirements of revised CAS 315.

525

Updated and added new areas to document who was interviewed for the required inquiries.

550, 550-1, 550-1 NFP, 550-2, 550-2 NFP, 550-3, 550-4

Renumbered and adjusted Forms 540-560 to help the auditor obtain an understanding of the entity's control activities, evaluate their design and determine implementation.

605

Now a worksheet as an overall audit response can be documented on Form 520. Changed the focus of the form to concentrate more on fraud risk such as management override and planning unpredictable procedures.

681

Updated guidance and references within the form.

507-1, AL2.2

Updated the date at the bottom to 2022 to match with the update date from CPA Canada. Reference changes made by CPA Canada to these forms does not affect these forms.

Toolkit form 582

Updated references within the form.

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