Good Audit Documentation Mike Bishop

What can go wrong What can go wrong How we might fix it How we might fix it Brainstorm Brainstorm

Audit Process What can go wrong ? Planning Planning meeting minutes absent or brief Planning meeting minutes absent or brief Planning memo is ‘light’ and does not reflect quality of thought the team has put into it Planning memo is ‘light’ and does not reflect quality of thought the team has put into it Audit programmes do not reflect what we said we would do (both more and less) Audit programmes do not reflect what we said we would do (both more and less) Fieldwork Individual work papers suggest unresolved issues – which in fact have been subsequently cleared Individual work papers suggest unresolved issues – which in fact have been subsequently cleared ‘Dangerous’ comments ‘Dangerous’ comments Client prepared electronic schedules Client prepared electronic schedules Completion Documentation of going concern Documentation of going concern Judgmental issues resolved at closing meeting Judgmental issues resolved at closing meeting E mails (where relevant) not on file E mails (where relevant) not on file

What can go wrong ? Ideas Planning meeting minutes absent or brief Be clear on responsibility Be clear on responsibility Circulate to client Circulate to client Cross refer to Planning Memo Cross refer to Planning Memo Planning memo is ‘light’ and does not reflect quality of thought the team has put into it Make sure it is written by the person (s) best placed to do so – don’t over delegate Make sure it is written by the person (s) best placed to do so – don’t over delegate Sign off before work starts Sign off before work starts Audit programmes do not reflect what we said we would do (both more and less) Review before work starts on site – always a temptation for staff to ‘play safe’ Review before work starts on site – always a temptation for staff to ‘play safe’ Individual work papers suggest unresolved issues – which in fact have been subsequently cleared Destroy review points as a policy Destroy review points as a policy ‘Dangerous’ comments Brief team of sensitivities – especially when there is a possible transaction Brief team of sensitivities – especially when there is a possible transaction

What can go wrong ? Ideas Client prepared electronic schedules Mark clearly what is client and what constitutes evidence Mark clearly what is client and what constitutes evidence Careful of colours ! Careful of colours ! Documentation of going concern Likely to be partner or manager’s responsibility – so do it Likely to be partner or manager’s responsibility – so do it If subject to independent review – make sure explicitly required to be reviewed If subject to independent review – make sure explicitly required to be reviewed Judgmental issues resolved at closing meeting Get your Senior at the closing meeting Get your Senior at the closing meeting Ascribe responsibilities Ascribe responsibilities E mails (where relevant) not on file We struggle….so ideas welcome! We struggle….so ideas welcome!

Discussion Groups Are the areas which I have highlighted the main problem areas, or are there others? Are the areas which I have highlighted the main problem areas, or are there others? Does the team agree with the ideas for getting it right – or are there other better solutions? Does the team agree with the ideas for getting it right – or are there other better solutions? Are there any particular documentation issues associated with international assignments? Are there any particular documentation issues associated with international assignments?

Good Audit Documentation Mike Bishop