809

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Author:
Anonymous
ID:
57663
Filename:
809
Updated:
2011-01-01 18:03:10
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Review Workpapers
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Description:
809
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  1. Review of Workpapers

    809.1 The review of workpapers
    near the conclusion of the engagement generally consists of a detailed
    review of the audit work of staff assistants and a higher level
    supervisory review. The supervisory review is usually conducted after
    financial statements and the auditor's report have been drafted and
    • is the final check on whether the audit work supports the overall conclusions on the financial statements. SQCS No. 7, A Firm's System of Quality Control (QC 10.59-.61),
    • indicates that a firm should establish policies and procedures that
    • address supervision and review responsibilities. SAS No. 103, Audit Documentation, requires that the workpapers indicate who reviewed the workpapers and the date of the review (AU 339.18). The “Supervision, Review, and Approval Form” at HOA-CX-14 provides space for identifying the reviewers and dates of the reviews.
  2. Tax Department Review

    809.2 As discussed in Chapter 5,
    tax considerations often are significant to CIRAs. In addition to the
    detailed and supervisory review by audit personnel, CPA firms with
    separate tax departments typically have the firm tax personnel review
    tax aspects of the audit workpapers and financial statements, for
    example
    • those relating to whether the CIRA elects to be taxed under IRC Section 277 or IRC Section 528. See Chapter 5.
    • The auditor should be sure to discuss with tax department personnel any
    • knowledge they may have of matters that may affect the financial
    • statements. The “Supervision, Review, and Approval Form” at HOA-CX-14 includes an optional step relating to tax department review.
  3. Timing of Review of Workpapers

    809.3 SAS No. 103 (AU 339),
    requires that the date of the auditor's report should be no earlier
    than the date that sufficient appropriate evidence has been obtained to
    support the opinion on the financial statements. Among other items, sufficient appropriate audit evidence includes evidence that:
    • a. The audit documentation has been reviewed.
    • b. The financial statements, including disclosures, have been prepared.
    • c. Management has taken responsibility for the financial statements.

    • The authors believe that both the detailed and supervisory review should
    • be performed and evidenced prior to the date of the auditor's report.
  4. Review Checklists

    809.4 Most firms use some form of
    checklist to serve as a reminder of important engagement completion
    matters and to document completion of a review of the workpapers. The
    authors recommend use of such a checklist on a CIRA audit.
    • 809.5 An example of a review checklist entitled “Supervision, Review, and Approval Form” is presented at HOA-CX-14.
    • As previously mentioned, the checklist has sections for documenting the
    • detailed review and the partner review, and it includes an optional
    • step relating to tax department review.

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