Defining the Settings for the Financial Statement Areas Worksheet
The FSA Worksheet provides an input area where the engagement team can document other considerations that may impact significant accounts, financial disclosures and sensitive areas. As the Firm Author, you can determine whether this column displays or not. You can also specify the name of the column.
- In the AO - General options document, click Financial Statement Areas Worksheet.
Fill in the applicable fields and options:
Fields / Options What to do...
Row - Entity level and IT general weaknesses and controls
Type a new entity level row title in the Terminology text field.
Risk assessment at entity level
Select the Risk assessment at entity level to automate RMM on a entity level.
- If the Inherent and Control risk columns are included, the proposed RMM value of the Entity level and IT general weaknesses and controls row is based on the Defined RMM Scoring dialog
If the Inherent and Controls columns are included, the proposed RMM value of the Entity level and IT general weaknesses and controls row is the highest RMM score assigned to an entity level risk
Materiality Warning Indicators
Note: The Include Audit Response in FSA option needs to be enabled for indicators to display.
Select the Show warning indicators when Final materiality and Overall materiality are different check box if the warning indicators are to be displayed, or clear this check box if they are to be hidden. The default is to display the indicators.
For more information, see Assessing Materiality in the FSA.
Select the Include column checkbox to provide an input area where the engagement team can document other considerations that may impact significant accounts, financial disclosures and sensitive areas.
Click the Terminology field and type the name of the column if you want to change the name.
Select the default risk type or modify the risk terminology by selecting Other from the drop-down menu.
Choose the appropriate scoring using the drop-down menus.
Note: Additional options in the drop-down menu will not display if Automate the assessment of Inherent Risk/Control Risk/RMM is enabled.
Select to include the risk type in the FSA.
Note: To have the assessed risk populate in the work programs rather than populating the RMM in the FSA, ensure that the Include checkbox for Risk 4 - RMM is cleared.
Automate Risks Assessment
Select to automatically suggest a risk assessment level for assertions to populate in the Financial Statement Areas report. The suggestions will be based off the risk and controls in the engagement
Automate the assessment of Inherent Risk
Select to populate inherent risk from the Risk Dialog to the FSA. It accumulates the sum of all the assertions for each risk assigned to a specific FSA area and takes the highest value per FSA and assertion.
Automate the assessment of Control Risk
Select to populate control risk based on the auditor's conclusion from the control matrix.
For more information, see About the Control Matrix
Automate the assessment of RMM and Audit Responses
Select to populate the RMM based on the scoring defined in the Define Scoring dialog. Click () to open the Define Scoring dialog.
For more information on the Define Scoring dialog, see Defining scoring system.
Audit response columns can also be automated based on RMM, inherent and control risk scoring. Select from the following letters:
A. Substantive procedures - basic
B. Substantive procedures - extended (sampling, fraud, significant risks, etc.)
C. Substantive analytical procedures (proof in total, etc.)
D. Tests of controls (operating effectiveness)
Note: If inherent and control risks are not automated, then the automatic assessment of RMM will be populated from the Risk dialog. It accumulates the sum of all the assertions for each risk assigned to a specific FSA area and takes the highest per FSA and assertion.
Audit Response Columns
Select the default terminology name by select other and typing a new value.
Audit response type
Select an applicable audit response type from the drop-down.
Select or clear to include the response type to the FSA. Click the icon to select the corresponding groupings/subgroupings. The selections determine which procedure groupings should be included or excluded, depending on the responses given in the FSA.
Note: If there are no procedures that match the response type in the client file, a warning will display.
- Select the Check when completed check box.
You have now specified the settings for the Financial Statement Areas Worksheet.
This online help system applies to all Caseware Audit, Review and Compilation products. Not all features are available in all products.