Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards. What would you like to do?
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
- 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.
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
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.
- authors believe that both the detailed and supervisory review should be
- performed and evidenced prior to the date of the auditor's report.
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.