REPORT WRITING & INDEPENDENT REVIEW 1 PRESENTED BY FAITH NGWENYA TECHNICAL & STANDARDS SERVICES EXECUTIVE REPORT WRITING - CPD 2017
Professional Accountant 2 REPORT WRITING - CPD 2017
QUALITY CONTROL ISQC 1 3 ISQC 1 Monitoring Engagement performance Leadership Human responsibilities Resources . Ethical Acceptance and requirements continuance REPORT WRITING - CPD 2017
ISQC 1 RISK AND COMPLIANCE 4 Policies and procedures not documented Leadership responsibility - Independence declaration No on -going review of Independence & from staff not obtained policies and procedures Monitoring ethical - Register of identified No cold file reviews (audit) requirements threats & safeguards not maintained Non-compliance with ISQC1 - No integrity checks plus -Lack of supervision and client identification control Engagement Client acceptance - Procedures not -Methodology (audit) not performance & continuance documented effective - - Engagement letters not issued Human Resources - References not obtained for new staff REPORT WRITING - CPD 2017 -Fit and proper declarations not obtained - Insufficient training on ISA/IFRS and record keeping -Staff appraisals not done or informal
5 Leadership responsibility Organisation structure Setting tone Enforcement from the of policies top Leadership responsibility Establish Communicate policies & with staff procedures Document policies & procedures REPORT WRITING - CPD 2017
SETTING TONE AT THE TOP 6 Associate with right clients Clear Commitment standards & to continuous robust improvement processes Tone at the top Performance Recruitment of effective & of skilled & efficient competent reviews staff Commitment to technical excellence & quality REPORT WRITING - CPD 2017
ETHICAL REQUIREMENTS 7 Code of Conduct Ethical dilemma Independence procedures REPORT WRITING - CPD 2017
INDEPENDENCE 8 Independence of Decision making Independence of record Compilation keeping and compilation Independent review Independent of business entity Audit REPORT WRITING - CPD 2017
INDEPENDENCE 9 Regulations & Services agreed Execution of Appointment standards upon performance Independence Acceptance & Engagement Engagement Compliance of continuance letter & planning performance performance REPORT WRITING - CPD 2017
INDEPENDENCE AND ETHICS 10 01 02 Obtain Evaluate information Obtain information on potential threat to Evaluate any threats to independence & ethics independence & ethics 04 03 Document Action Take appropriate action to mitigate Document & report on the risks to ethics & independence conclusions . REPORT WRITING - CPD 2017
ACCEPTANCE AND CONTINUANCE 11 Integrity of the client Acceptance and continuance Can comply with ethical Practice is competent requirements and & has sufficient time, resources & REPORT WRITING - CPD 2017 competence
HUMAN RESOURCES 12 Recruitment and Appointment Professional Performance evaluation, development compensation & promotions Ability/Aptitude Values Competence Motivation Quality of work REPORT WRITING - CPD 2017
ASSIGNMENT AND ENGAGEMENT TEAM 13 Identity and role of engagement partner communicated Engagement partner has appropriate capabailities, competence, authority & time Responsibilities of engagement partner clearly defined & communicated REPORT WRITING - CPD 2017
ENGAGEMENT PERFORMANCE 14 Professional Regulatory Performance Standards requirements obligations REPORT WRITING - CPD 2017
ENGAGEMENT PERFORMANCE 15 Performance Activity Performance Criteria Engagement letter Service/agreed upon deliverables Resource allocation Competence-engagement fit Planning engagement Responsibility & accountability duties Monitoring Quality assurance – supervision & review strategies & reports Work flow planning Integrated work plan documented and sign off Reporting File & report review processes Performance obligations Document discussions & communications REPORT WRITING - CPD 2017
CONSULTATION OR SECONDMENTS 16 • Appropriate consultation has taken place on difficult issues • Sufficient resources available to enable appropriate consultation • Nature and scope of consultations documented • Conclusions reached from consultations are documented & implemented REPORT WRITING - CPD 2017
CONSULTATION OR SECONDMENTS 17 Strategy Objective Supervision Risk identification & provide guidance Monitoring Continuous quality assurance review to prevent risks Review Ensure compliance & correction of risks Documentation Proof of evidence REPORT WRITING - CPD 2017
MONITORING 18 Establish a monitoring process designed to provide it with reasonable assurance that policies & procedures relating to the system of quality control/assurance are relevant, adequate & operating efficiently. Internal assessment External assessment Professional assessment Functionality & Relevance & Inspection & compliance benchmarking compliance REPORT WRITING - CPD 2017
Compilation Engagement [ISRS 4410] 19 Prepared by: Rashied Small, Hashim Salie, Shafiek Dollie & Yaeesh Yasseen REPORT WRITING - CPD 2017
Public Interest Score 20 Public Interest Score: The public interest score is a mechanism introduced by the Companies Act that determines: (i) the type of engagement that must be performed, (ii) accounting framework that must be adopted, and (iii) corporate governance issues that should be complied with REPORT WRITING - CPD 2017
PUBLIC INTEREST SCORE COMPONENTS 21 REPORT WRITING - CPD 2017
PUBLIC INTEREST SCORE - CRITERIA 22 A number of points that equal the average number of employees during the financial year. One point for every R 1 million (or portion thereof) in third-party liabilities at the financial year end. One point for every R 1 million (or portion thereof) in turnover during the financial year One point for every individual who, at the end of the financial year, is known to directly or indirectly have a beneficial interest. REPORT WRITING - CPD 2017
1. Is the company a public company or a state-owned company? Yes Audit 2. Is company a private company and controls fiduciary assets OM < >R5m? 100 No No Greater/= Aud/IR than 350 PIS Less than 100 PIS Duties of Acc Off Less than 350 PIS Application of PIS to Non- and Private Companies and Owner greater/equal to CCs Managed than 100 PIS Acc Officer Non CA/CA Is entity Owner Yes CC Managed Ext Int No EXT Audit/N Greater/= o IR No CA than 350 PIS Less than 350 PIS and greater/equal to INT Independe than 100 PIS Audit Yes nt Review
PUBLIC INTEREST SCORE - APPLICATION 24 Public Interest Score Financial Reporting Standard Audit PIS ≥ 350 IFRS / IFRS for SMEs YES IFRS / IFRS for SMEs YES PIS ≥ 100 and < 350 and AFS were internally compiled IFRS / IFRS for SMEs NO PIS ≥ 100 and < 350 and AFS independently compiled IFRS / IFRS for SMEs NO PIS < 100 and AFS independently compiled PIS < 100 and AFS internally NO The Financial Reporting Standard as compiled determined by the company for as long as no Financial Reporting Standard is prescribed REPORT WRITING - CPD 2017
PUBLIC INTEREST SCORE - PRACTITIONERS 25 REPORT WRITING - CPD 2017
COMPILATION – ISRS 4410 26 Assurance: A compilation does not involve and audit or review, no assurance about the financial statements is provided Compilation provide “implied assurance” about the fair presentation and relevance of the financial statements (requirement of accounting standards) and the procedures prescribed in terms of ISRS 4410 REPORT WRITING - CPD 2017
LEGISLATION 27 • S 29 and s30 • Qualitative requires the characteristics and compilation presentation of financial information Companies Accounting Act Standards ISQC 1 ISRS 4410 • Responsibilities of • Competence the compiler and required to the procedures to perform the follow compilation REPORT WRITING - CPD 2017
Compilation Engagement 28 Compilation is defined as an engagement in which the professional applies his accounting and financial competence to assist management to prepare financial statements in accordance with the appropriate accounting framework based on information provided by management. REPORT WRITING - CPD 2017
When should a compilation be performed 29 Assist management in making judgement in compiling financial statements Compilation Management requires reports for decision making For planning purpose – support financial and tax planning Supporting documentation – valuation or sale of a business or interest in a business Purposes of other engagements – base for review or audit engagement REPORT WRITING - CPD 2017
Compiler’s Responsibilities 30 Financial statement risks Verification of Independence information Compiler REPORT WRITING - CPD 2017
Recommend
More recommend
