The Financial Statement Areas worksheet is a valuable audit tool, as it accumulates all of the financial statement areas for an engagement in a central location where various properties can be associated. The Financial Statement Areas (FSA) Worksheet consist of three important components,
- Risk Assessment
- Risk Response
These components are updated in different stages during the engagement. To help respond to assessed risks, the template includes work programs that contain all the procedures necessary to complete the testing of a specific financial statement area. Each work program has a planning area used to respond to the assessed risk at both the financial statement level and assertion level. When filling up the audit response columns in the FSA, parts of the detailed audit responses will be filled out automatically in the related work program. In the FSA , you have the ability to,
- Select the audit response columns for each financial statement area to reflect in the detailed audit response for each work program if included (set in AO – General options).
- Insert the Risk Report above the worksheet to display risks that are relevant to all assertions.