Presentation is loading. Please wait.

Presentation is loading. Please wait.

Compilation Engagement Business Integrity, Insight and Beyond.

Similar presentations


Presentation on theme: "Compilation Engagement Business Integrity, Insight and Beyond."— Presentation transcript:

1 Compilation Engagement Business Integrity, Insight and Beyond

2 Do you have a standard financial statement template for your firm? Do you have standardised working papers? (Compilation, review or audit) Are partners involved: - Before the engagement starts - At the end of the planning stage - At the end of the engagement During a typical engagement, how often does the partner discuss the issues with: - The engagement team - The person who prepares the financial statements - The client’s accountant - The client’s management Rate your knowledge of: - Auditing, review and compilation standards - IFRS and IFRS for SMEs - Companies Act Does your firm specialise in a specific industry, client type, etc? Do you normally perform the work a the client’s premises? Do you ever do work that you don’t charge for? Survey

3 Recap of Review Engagement and FAQ Practical look at the Compilation Engagement Agenda

4 FAQs on Review Can I still prepare the financial statements? Is that all? - (I don’t feel comfortable with so little evidence) Which standard do we use? What is a review going to cost? Who can do the review? Group statements if subsidiaries were not audited?

5 FAQ on Companies Act Calculation of PI Score Section 45 Assistance Section 90 Auditor appointment - Same firm? - Secretarial work? - If previously appointed? Changing the MOI for voluntary audits Deadline for preparing AFS Business Integrity, Insight and Beyond

6 What is a compilation? When? Who? Compilation Engagement

7 Case study Internal Bookkeeper up to Trial Balance Service revenue - R7,8m (2010: R7,3m) - Automatically invoiced 7 days before service delivery 20112010 Employees109 Third party debtR387 529R372 752 6 Directors 100% Trylon 40% OHS MD 60%

8 Private companies - Assurance Audit NoneAuditReviewAudit None Review Independently compiled Internally compiled Independently compiled Internally compiled Owner managedNot owner managed PI Score 350 100 0

9 Private companies – Who will do it ? Registered Auditor (RA) RARA or CA(SA)RA Not applicable RA or CA(SA) or CC accounting officer Independently compiled Internally compiled Independently compiled Internally compiled Owner managedNot owner managed PI Score 350 100 0

10 The Review Process Knowledge of the business EnquiryAP Areas that are likely to be misstated Focused enquiry Focused AP Areas that may be misstated Additional enquiries Additional procedures

11 Receivables processing Processing General ledger Closing entries Trial balance Importing, mapping Draft financial statements Compilation Accounting policies, notes, disclosures Financial statements Audit / Review Annual financial statements Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

12 Section 29(6) (6) Subject to section 214 (2), a person is guilty of an offence if the person is a party to the preparation, approval, dissemination or publication of – (a)any financial statements, including any annual financial statements contemplated in section 30, knowing that those statements – (i)Fail in material way to comply with the requirements of subsection (1); or (ii)Are materially false or misleading, as contemplated in subsection (2); or

13 Receivables processing Processing General ledger Closing entries Trial balance Importing, mapping Draft financial statements Compilation Accounting policies, notes, disclosures Financial statements Audit / Review Annual financial statements Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

14 When your name is on the front page you take riskYou can’t afford to miss anythingYou have to rely on others in the processCompliant AFS need reliable recordsEvidence of work performed (CYA)You asked for guidanceGive you the best solution Why a compilation template?

15 Comply with compilation standard - ISRS 4410 Risk management - Companies Act Integration - Between compiler and auditor / reviewer Process - Cover everything - It must work the way you work Compilation objectives

16 Receivables processing Processing General ledger Closing entries Trial balance Importing, mapping Draft financial statements Compilation Accounting policies, notes, disclosures Financial statements Audit / Review Annual financial statements Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

17 Compilation Audit / review Closing entries Processing Mapping Receivables processing Annual Financial Statements Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

18 Probe MMX Probe Compilations Processing General ledger Closing entries Trial balance Importing, mapping Draft financial statements Compilation Accounting policies, notes, disclosures Financial statements Audit / Review Annual financial statements Receivables processing Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

19 Making it work Standardise - Firm template - Compilation, review and audit working papers Partner involved - Pre-planning - Planning - Finalisation Communicate - Team - Compiler - Accountant - Client staff - TCWG Know the standards - ISA / ISRE / ISRS - IFRS / IFRS for SMEs - Companies Act Specialise Work at the client Charge everything

20 Make it work Firm template Compilation, review and audit working papers Standardise Pre-planning Planning Finalisation Partner involved Team Compiler Accountant Client staff TCWG Communicate

21 Make it work ISA / ISRE / ISRS IFRS / IFRS for SMEs Companies Act Know the standardsSpecialiseWork at the clientCharge everything

22 Group audits - ISA 600 IFRS for SMEs - Audit & Compilation Updates on What’s happening - Facebook & Twitter Next steps

23 ProBeta Accountancy Development (Pty) Ltd. info@probeta.co.za www.probeta.co.za ProBeta.Accountancy #ProBetaAcc Probe MMX #Probe User +27 (11) 886-1395 +27 (21) 910-2766

24 - Ross Hampton


Download ppt "Compilation Engagement Business Integrity, Insight and Beyond."

Similar presentations


Ads by Google