Auditor / Accountant

Audit – external and internal

The New Zealand written software called Audit Assistant (AA), which is hosted in the Cloud, is used. It is auditing standards written, with the software constantly updated for revisions to the standards and is very comprehensive.

Using AA working through the suite of programmes

• Deciding on the appropriate template for the particular client regarding:
• o   Size
• o   Tier level
• o   For profit
• o   Not for profit
• Audit Planning including:
• o   Preparing / updating the engagement letter for the client
• o   Sending to the client governance questionnaires
• o   Establishing deadlines with the client regarding:
• §  Work commencement
• §  Receipt of draft financial statements
• §  Work completion
• §  Principal review
• §  Audit report sign-off
• §  AGM
• o   Uploading the trial balance
• o   Uploading supporting workpapers
• o   Establishing materiality levels of:
• §  Overall materiality
• §  Performance materiality
• §  Trivial
• Internal Controls assessment including
• o   Sending to the client various questionnaires
• Preliminary analytical review
• Fraud considerations including:
• o   Sending questionnaires to management and governance
• Strategy / Plan
• o   Establishing the risk analysis, audit strategy and plan
• Testing
• o   Establishing whether to use substantive testing using statistical analysis via AA, or internal controls testing, or both
• o   Carrying out testing for
• §  Income
• §  Expenditure
• §  Journal and general ledger
• §  Fixed and other non-current assets
• §  Accounts receivable and other current assets
• §  Bank
• §  Accounts payable and other current liabilities
• §  Equity
• Finalisation and reporting including:
• o   Sending audit adjustments to the client
• o   Reviewing the financial statements
• o   Working through detailed checklists for each financial statement
• Final analytical review including
• o   Reviewing going concern
• Management letter
• o   Discussing with the Principal as to whether a management letter is required
• o   If so, drafting the letter
• Reports including:
• o   Customising the standard AA representation letter
• o   Customising the standard AA audit report.
• Accounting and income tax
• Preparing a paper-based file for the new year
• Using MYOB Accountants Office
• o   Backing up the last year’s file
• o   Rolling the original last year’s file to the next year
• o   Importing cash transactions (coded by another staff person) from MYOB Business
• o   Entering year end accruals for debtors, creditors, fixed assets
• o   Updating statutory changes including shares issued, shareholders, directors, registered office
• o   Updating the notes to the financial statements
• o   Checking the links within the financial report
• o   Printing the financial report and entering workpaper references on the balance sheet
• o   Preparing Director annual resolutions
• o   Preparing shareholder resolutions
• Agreeing balance date bank balances to the bank statement
• Updating worksheets in Excel for
• o   Revenue
• o   Expenses
• o   Debtors
• o   Creditors
• o   GST - reconciling GST to the GST return at balance date
• o   IR10 – entering profit or loss and balance sheet numbers to the formulated worksheet
• Updating the Interests Register in Word
• Preparing the income tax return in MYOB Live
• Printing the financial report and tax return for the Principal’s review.