Audit International 26.00 Content Updates

Caseware® International Inc. licenses certain content for Audit International under agreement with the Chartered Professional Accountants of Canada (CPA Canada). The content provides non-authoritative guidance on applying International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board. These forms are designed to assist practitioners in the implementation of the ISAs and are not intended as a substitute for the ISAs themselves.

Overview

This version of Audit International includes the changes and new requirements in ISA 600 (Revised), Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors), which are intended to strengthen the auditor’s responsibilities related to group audits. Additionally, documents listed in this summary have been enhanced to provide more user-friendly content to streamline the audit workflow, as a result of feedback provided by users and practice reviewers/regulators.

New forms

  • Form 420.600 - Group audit - component materiality

  • Form 421.600 - Component balances (new automatic document)

  • Form 422 - Worksheet - Selecting a component audit

  • Form 535 - Financial reporting

  • Form 590.600 - Engagement scoping - Components

  • Form 5200 - Letter to component auditor

  • Form 5201 - Instructions for a component auditor

  • Form 622 - Worksheet - Evaluating the work of a component auditor

  • Form 635 - Financial reporting - Audit procedures

  • Form 310-1 - Checklist - Partner acknowledgement

New automatic document

The new automatic document (Form 421.600) will not be added to the master template during the update process. This form will need to be created, as the patch process does not support the addition of automatic documents. This form has been added to assist in performing a preliminary engagement scoping to identify and list all classes of transaction, account balances, and disclosures.To add this form, follow these instructions after the update:

  1. On the Working Papers home screen, click Templates, then double-click Audit International.

  2. On the ribbon, click Documents to open the Document Manager. Locate Form 420.600.

  3. On the ribbon, click Home | Automatic Document. Customise the new automatic document as follows:

    • Number: 421.600

    • Name: Component balances (Core)

    • Document Type: Leadsheet/Grouping

    • Format: Group hierarchy summary

    • Balance type: Consolidated

    • Default settings for the following items: Balances: Active/Prior; Rounding: None; Period: Current Period; Grouping: L/S

  4. Click OK to add the document.

  5. Right click on the new automatic document and select Tags. Add CW2100, CWPLAN and CWPR05.

To add the form to existing updated client files, add it from the Document Library.

Changes to profiles

Profiles 11-13 (i.e. Previous OneForm +, Previous Core and Previous Tailor per engagement) have been removed. Any client files created using profiles 11-13 will not update during the update process. If you used any of these previous profiles in the prior year, we recommend that you create a new client file with the applicable modern profiles.

Changes to layout (dashboard)

We’ve renamed the Control Design section under the Planning and Risk Assessment widget to Understanding System of Internal Control. As this change is made in the layout, it will apply to any files using the layout after the update is applied to the master template.

We’ve renamed the Control Design folder on the Document Manager to Understanding System of Internal Control to match the changes to the layout. Note that the Document Manager is only changed in the master template during the update process and the folder name does not change for existing client files.

Known issues

In work programs and checklists, the icons for procedure conditions (grey eyes) and tags (blue eyes) may not be correct after the patch update. This is a known display issue and the functionality will be correct in the client files. In each work program or checklist, click on the red button beside the Home button to update the tooltip for procedure actions and conditions.

Content updates

Audit International includes the following content updates in addition to the What's New - Audit 26.00.

Engagement file setup

Form numbers

Description

400.

Recreated 2 procedures. (Note: We have deleted the procedure and readded it as “NEW” to remove the procedure conditions.)

Major changes to 6 procedures.

Minor changes to 6 procedures.

Deleted 2 procedures.

400-1.

Major changes to 4 procedures.

Minor changes to 2 procedures.

Deleted 1 procedure.

400-2.

Added 2 new procedures.

Major changes to 4 procedures.

Minor changes to 5 procedures.

Deleted 1 procedure.

Audit

Form numbers

Description

ONEFORM.

Replaced previous ISA 600 content with ISA 600 (Revised) documentation requirements.

ONEFORMX. DELETED

Deleted Form ONEFORMX. relating to the previous profiles.

Planning

Form numbers

Description

405.

Added 2 new procedures.

Major changes to 6 procedures.

Minor changes to 3 procedures.

Deleted 1 procedure.

Updated document guidance and conclusion.

415.

Added dynamic text of group and non-consolidated terms.

Added 1 new paragraph.

Modified 11 paragraphs.

Updated guidance.

420.600 NEW

New form to document component performance materiality, both preliminary and final, along with specific performance materiality.

421.600 NEW

New form added for component balances.

422. NEW

New form related to component auditors.

430.

Added 2 new procedures.

Minor changes to 2 procedures.

Updated document guidance.

436.

Added 2 new procedures.

Major changes to 2 procedures.

Minor changes to 2 procedures.

Updated document guidance.

438.

Added dynamic text of group and non-consolidated terms.

Added 1 new section.

Modified 13 paragraphs.

Updated guidance.

445. DELETED

Form has been deleted and replaced by new Form 590.600.

455.

Added 3 new procedures.

Major changes to 4 procedures.

Minor changes to 5 procedures.

Deleted 1 procedure.

Updated document guidance.

Risk assessment

Form numbers Description

FSA.

Added the Entities column and renamed to Components.

590.600 NEW

New form added to determine which component audit work will be performed.

Replaced Form 445 - Group audit planning.

510.

Updated the guidance.

Enhancements Entity ownership and Subsidiaries section.

Modified 7 existing and added 4 new matters to consider.

Modified 1 existing and added 13 new risk factors.

511.

Added 1 new procedure.

Major changes to 1 procedure.

Minor changes to 3 procedures.

Updated document guidance.

Added conclusion.

511-1.

Updated the guidance.

Added guidance to the Applications section.

Added a new table.

523.

Deleted the hidden content relating to condensed forms.

523-1.

Deleted the hidden content relating to condensed forms.

520E.1

Added the Entities column and renamed to Components.

520E.10 DELETED

Deleted the risk reports relating to the previous profiles.

520E.2

Added the Entities column and renamed to Components.

520E.102 DELETED

Deleted the risk reports relating to the previous profiles.

520E.3

Added the Entities column and renamed to Components.

520E.103 DELETED

Deleted the risk reports relating to the previous profiles.

520E.4

Added the Entities column and renamed to Components.

520E.104 DELETED

Deleted the risk reports relating to the previous profiles.

530.

Updated the document guidance.

Added section guidance for 3 risk areas.

Modified 2 example policies and procedures.

531.

Added 3 new procedures.

Major changes to 3 procedures.

Minor changes to 8 procedures.

Updated document guidance and conclusion.

535. NEW

New form to assist in the identification of risks in the financial statement preparation process, including consolidation process.

540.

 Added the Entities column and renamed to Components.

545.

 Added the Entities column and renamed to Components.

550.

 Added the Entities column and renamed to Components.

555.

 Added the Entities column and renamed to Components.

560.

 Added the Entities column and renamed to Components.

561.

 Added the Entities column and renamed to Components.

562.

 Added the Entities column and renamed to Components.

520E.5

 Added the Entities column and renamed to Components.

520E.105 DELETED

Deleted the risk reports relating to the previous profiles.

520E.6

Added the Entities column and renamed to Components.

520E.106 DELETED

Deleted the risk reports relating to the previous profiles.

520E.8

Added the Entities column and renamed to Components.

520E.

Added the Entities column and renamed to Components.

5200 NEW

New letter related to component auditors.

5201 NEW

New letter related to component auditors.

Risk response

Form numbers Description

622. NEW

New form related to component auditors.

635. NEW

New form to respond to the risks identified in understanding the financial reporting process, including the consolidation process.

650.

Major changes to 4 procedures.

Updated document guidance.

670.

Major changes to 1 procedure.

Minor changes to 1 procedure.

Updated document guidance.

Deleted the Objectives table and included the objectives area as part of guidance.

5101 DELETED

Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5102 DELETED

Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5103 DELETED

Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5000 DELETED

Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5001 DELETED

Removed as Engagement quality review responsibilities are now covered in Form 302 - Engagement quality.

5002 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5003 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5004 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5004 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5005 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5006 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5007 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5008 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5009 DELETED

 Deleted for new ISA 600 (Revised) content integrated into new and existing forms.

5010 DELETED

Deleted as Goodwill impairment is covered in Form 10.101 Intangibles and goodwill - Audit procedure.

5011 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5012 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5013 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5013 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5014 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5015 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5016 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

5017 DELETED

 Deleted as the new ISA 600 (Revised) content is now covered in Form 5201 - Instructions for a component auditor.

Completion documents

Form numbers Description

DOC

Added 5 new procedures.

Major changes to 1 procedure.

Minor changes to 13 procedures.

Deleted 8 procedures.

Updated document guidance.

304.

Major change to 1 procedure.

305.

Added 2 new procedures (including addition of a new section).

Major changes to 3 procedures.

Minor changes to 28 procedures.

520E.7

Added the Entities column and renamed to Components.

520E.107 DELETED

Deleted the risk reports relating to the previous profiles.

310.

Added 1 new procedure.

Major changes to 1 procedure.

Minor changes to 3 procedures.

Deleted conclusions.

310.-1 NEW

New form to include the Partner/Practitioner conclusions from Form 310.

New procedures include:

  • Expert competence and capabilities

  • Internal audit competence and capabilities

  • Component auditor competence and capabilities

  • Component auditor quality monitoring and remediation

360.

Added the Entities column and renamed to Components.

365.

Added dynamic text of group and non-consolidated terms.

Updated guidance.

366.

Added dynamic text of group and non-consolidated terms.

Updated guidance.

367.

Added dynamic text of group and non-consolidated terms.

Updated guidance.

Modified 2 paragraphs.

Added 4 new sections.

368.

Added dynamic text of group and non-consolidated terms.

Modified 1 paragraph.

Updated guidance.

350.

Added dynamic text of group and non-consolidated terms.

Modified 8 paragraphs.

Added 5 new paragraphs.

Added 2 new sections.

Updated guidance.

Caseware Audit System documents

Form numbers Description

Q

Minor change made to the name of the form. No additional changes have been made.

Original toolkit forms (replaced by Caseware automated tools)

Form numbers Description

590-600 NEW

Added a new toolkit form as an alternative to Form 590.600.