Michael Moreland & Kathryn Beseau Partners Moreland & Associates, Inc.

Slides:

Advertisements

Similar presentations

Implementing SAS 112 Thomas H. McTavish, C.P.A. Auditor General State of Michigan.

Advertisements

Pursuing Effective Governance in Canada’s National Sport Community June 2011.

Presented by YOUR NAME THE DATE

G L O B A L S E R V I C E / I N D U S T R Y A U D I T / T A X / A D V I S O R Y / L I N E O F B U S I N E S S SAS 112 Presentation California State University.

©2012 CliftonLarsonAllen LLP Educating Governance on the Audit Jackie Eckman, CPA Partner CliftonLarsonAllen LLP

Office of the Auditor General of Canada CANADA’S ADOPTION OF INTERNATIONAL STANDARDS ON AUDITING 20 FACTS PREPARERS of FINANCIAL STATEMENTS SHOULD KNOW.

Internal Control.

Breach of a Requirement of the Code Marisa Orbea New York 19 June 2012.

R E G I O N A L A U D I T T R A I N I N G A U D I T ISA changes 2010.

Audit Documentation PCAOB Auditing Standard no.3.

Understanding the Client and General Planning

SAS 112 Update Chapter 9 Presented by Chris Ray, Partner KPMG LLP KPMG LLP.

Auditing A Risk-Based Approach To Conducting A Quality Audit

18- 1 © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 18 Integrated Audits of Internal Control (For Public Companies Under Sarbanes-Oxley.

Section 404 Audits of Internal Control and Control Risk

Purpose of the Standards

Nature of an Integrated Audit

ISA 220 – Quality Control for Audits of Historical Financial Information

Audit Committees in Local Government FinPro Professional Development Seminar Linda MacRae Local Solutions Pty Ltd 25 October

Statement on Auditing Standards (SAS) 112 Communicating Internal Control Related Matters Identified in an Audit.

Learning Objectives LO1 Describe the association framework. LO2 Determine whether a PA is associated with financial statements. LO3 Describe the three.

Learning Objectives LO1 Describe the role of professional judgment in achieving the overall objectives of the independent auditor in conducting an audit.

1 Welcome AUDIT COMMITTEE, AICPA MATRIX. Fiduciary Responsibility and Stewardship Fiscal Accountability Legal Responsibility Regulatory Requirements Delegated.

Reports on Audited Financial Statements

Auditing Internal Control over Financial Reporting

Fall 2003 Auditing Update for Auditing and Assurance Services: An Integrated Approach.

Do You Need An Audit Committee, Finance Committee, or a Joint Municipal/Education Committee?

Audit objectives, Planning The Audit

Auditing Internal Control over Financial Reporting

New Auditing Standards Laurie Ball, CPA Swenson Advisors, LLP (Murrieta) Audit Director Accounting Day May 12, 2008.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Chapter 5 Internal Control over Financial Reporting

Considering Internal Control

Internal Control in a Financial Statement Audit

1 Application of SAS 112 in a Single Audit GAQC Member Conference Call January 15, 2008 Presented by Mandy Nelson, CPA George Rippey, CPA.

Auditing Sept. 24, Audit Standards Page 38.

NO FRAUD LEFT BEHIND The Effect of New Risk Assessment Auditing Standards on Schools Runyon Kersteen Ouellette.

1 The Impact of SAS 112 on Governmental Financial Statement Audits GAQC Member Conference Call January 4, 2007 Presented by Chuck Landes, CPA.

Evaluation of Internal Control System

Chapter 7 Auditing Internal Control over Financial Reporting McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Practice Management Quality Control

Communication with those charged with Governance

S21: Reporting. Audit Reporting » The main objective is to ensure clear and informative reporting to the users of financial statements. » Audit Reports.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 6-1 Chapter 6 CHAPTER 6 INTERNAL CONTROL IN A FINANCIAL STATEMENT AUDIT.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 6-1 Chapter Six Internal Control in a Financial Statement Audit.

BROUGHT TO YOU BY:-. AMENDMENTS IN AUDITING SA s SA 265 -COMMUNICATING DEFICIENCIES IN INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT.

McGraw-Hill/Irwin © The McGraw-Hill Companies 2010 Auditing Internal Control over Financial Reporting Chapter Seven.

OVERVIEW THE AUDIT PROCESS Overview of the Audit Process.

Internal Control Chapter 7. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Summary of Internal Control Definition.

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Section 404 Audits of Internal Control and Control Risk Chapter.

1 Overview of PCAOB Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements.

An Overview THE AUDIT PROCESS. MAJOR PHASES IN AN AUDIT Client acceptance and retention Establish terms of the engagement Plan the audit Consider internal.

18-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

ICAJ/PAB - Improving Compliance with International Standards on Auditing Planning an audit of financial statements 19 July 2014.

©©2012 Pearson Education, Auditing 14/e, Arens/Elder/Beasley Considering Internal Control Chapter 10.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter

Improving Compliance with ISAs Presenters: Al Johnson & Pat Hayle.

AUDIT STAFF TRAINING WORKSHOP 13 TH – 14 TH NOVEMBER 2014, HILTON HOTEL NAIROBI AUDIT PLANNING 1.

 Planning an audit of cost statements, records and other related documents is considered necessary to ensure achievement of audit objectives with available.

©2005 Prentice Hall Business Publishing, Auditing and Assurance Services 10/e, Arens/Elder/Beasley Internal Control and Control Risk Chapter 10.

Auditors’ Dilemma – reporting requirements on Internal Financial Controls under the Companies Act 2013 and Clause 49 of the Listing agreement V. Venkataramanan.

Internal Control Chapter 7. McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Summary of Internal Control Definition.

Webinar on the Exposure Draft of CAS Continuing Education Policy

Chapter Two The CPA Profession

Reports on Audited Financial Statements

Internal and Governmental Financial Auditing and Operational Auditing

Chapter Two The CPA Profession

AU-C Section 240 Consideration of fraud in a financial statement

Presentation transcript:

Michael Moreland & Kathryn Beseau Partners Moreland & Associates, Inc. SAS 114 THE AUDITORS COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE Michael Moreland & Kathryn Beseau Partners Moreland & Associates, Inc.

STATEMENTS ON AUDITING STANDARDS (SAS’S) Issued by the AICPA Apply to all industries Deal with the way an audit is conducted, not accounting issues

EFFECTIVE DATE AND APPLICABILITY Effective for periods beginning on or after December 15, 2006 Applicable to communications in relation to an audit of financial statements

DEFINITION Those with the Power of Governance means the persons with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes overseeing the financial reporting process.

ANOTHER DEFINITION Management means the persons responsible for achieving the objectives of the entity and who have the authority to establish policies and make decisions by which objectives are to be pursued. Management is responsible for the financial statements, including designing, implementing, and maintaining effective internal control over financial reporting.

IDENTIFYING THOSE CHARGED WITH GOVERNANCE When those charged with governance is a collective responsibility, a subgroup, such as an audit committee or even an individual, may be charged with specific tasks to assist the governing body in meeting its responsibilities. When those charged with governance are not clearly identifiable, agreement must be reached.

COMMUNICATING WITH SUBGROUPS Consider the responsibilities of the subgroup and the governing body The nature of the matters to be communicated Whether there is also a need to communicate the information to the governing body

PURPOSE OF COMMUNICATION Communicate the responsibilities of the auditor in relation to the financial statement audit (an overview of the scope and timing of the audit) Obtain information relevant to the audit Provide timely observations arising from the audit that are relevant to their responsibility in overseeing the financial reporting process Communicate in writing, significant findings

COMMUNICATING AUDITOR RESPONSIBILITIES Matters communicated may include: How the auditor proposes to address significant risks due to fraud or error The auditor’s approach relating to internal control The concept of materiality The extent of reliance on an internal audit effort

QUALIFICATIONS OF THOSE CHARGED WITH GOVERNANCE Requirements to be on the City Council: Residency Age Receive the most votes (not the ability to oversee the financial reporting process)

INEFFECTIVE OVERSIGHT Ineffective oversight is an indicator of a control deficiency that should be regarded as at least a significant deficiency and a strong indicator of a material weakness in internal control.

LACK OF TWO-WAY COMMUCICATIONS If the auditor believes the two-way communication is inadequate, he should consider: Modifying the auditor’s opinion of the basis of a scope limitation Obtaining legal advice about the consequences of different courses of action Withdrawing from the engagement

HELP IS ON THE WAY An article in the November issue of Western City Magazine Part of January’s New Mayors and Council Members Academy program offered by the League of California Cities CCMA has recommended that finance directors learn about this requirement before their City Council members

IS MORE NEEDED? The League program was for 45 minutes. This was not enough time. Most Mayors and City Council members will not be interested. A separate stand-alone program should be offered by the League for those who have interest. What are your thoughts?