What s New Overview Probe MMX Review Compliance New Risk Recording Interface... 4

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1 Probe MMX

2 Contents What s New... 4 Overview Probe MMX Review... 4 Compliance... 4 New Risk Recording Interface... 4 Probe MMX For Small Engagements (Review and Audit)... 4 Design Mode... 4 Firm Settings... 4 Known Issues... 5 Installation Process Is Different To Prior Years... 6 Question:... 6 Answer:... 6 Question:... 6 Answer:... 6 Best practice on how to roll this template update out to the firm... 7 Question:... 7 Answer: Preparing for the installation: Installation of the update/service pack: Updating the firm template that all staff will use: Before rolling out the changes to the firm, we suggest the following: The recommended roll out process is as follows:... 8 Upgrade Guide... 9 Converting Client Files to Latest Templates... 9 Converting Existing Probe Documents... 9 File New from Existing... 9 Features of the Two Methods New Client File Setup Create New File Client Profile Information Store (10.10) Probe Firm Settings Trial Balance Mapping Numbers Financial Statements (01.10) User Guide Probe MMX Review Page 2

3 How to activate Probe MMX Review Enable special features Pre-engagement Planning Engagement Evaluation Engagement Letter Discussions With Those Charged With Governance Gathering Information Overall Materiality Assessment Areas likely to be misstated Work Programs Work Programs Focused Enquiry Document Finalisation Subsequent Events Work Program Going Concern Conclusion Subordination Agreement Checklist Overall Analytical Review Evaluation of Misstatements Senior s Final Checklist Partner Sign-off Report To Management And Those Charged With Governance Letter of Representation Contact us Main Contact Details Help Desk Direct Extension Other Important Details Page 3

4 What s New Overview Probe MMX Review Probe MMX uses the latest CaseWare and Template Technology, creating a way to conduct Independent Reviews based on the latest International Standards on Review Engagements (ISRE 2400). Probe MMX is much more than a content template; it is an intelligent template with a specific review approach to provide the best results. Compliance Probe MMX complies with the latest clarified International Standards on Auditing (Clarity Standards), International Standards on Quality Control as well as the International Standards on Review Engagements. New Risk Recording Interface The new interface is more intuitive and easier to use, making engagements faster. It requires less training for new staff to get going. Probe MMX uses one screen where everything from the risk right through to the mitigating control and the test of control is recorded. Thus, there is now an even clearer audit trail from the identification of risks, the response and conclusion. This ensures that all risks have been addressed. Probe MMX For Small Engagements (Review and Audit) Probe MMX Small can now be used for smaller engagements. It is specifically designed to reduce documentation, be more efficient but still ensuring compliance. Design Mode When Probe MMX was launched design mode of all documents were locked, due to the fact that users asked for certain documents to be unlocked. This version now has the following documents unlocked for the users formatting convenience. These documents are: Minutes Letter of representation Engagement letter Bank confirmation Director s remuneration certificate Firm Settings The software has even more features which can be switched on or off, or settings changed which are firm preferences. Page 4

5 Known Issues Not yet updated for review engagements Refers to ISA Refers to ISA 720 and other audit terms Refers to ISA Risk record button s tool tip refers to risk Risk record button s tool tip refers to risk Risk record button s tool tip refers to risk Page 5

6 Installation Process Is Different To Prior Years Question: What has changed in the installation process? Answer: In the past the installation process did not update the CQS template and it was the client s choice whether to run the update on the CQS template or not. With the new installation process the CQS template is updated automatically. Question: What is the impact of this change? Answer: If you have customised the CQS template file, this update may replace some of these changes, and as such you should consider whether to continue with this installation. Backup A backup of this template is now automatically created before any update is performed. Client files Client files will not be updated now, you will be prompted when opening them, to update. Page 6

7 Best practice on how to roll this template update out to the firm Question: How should I roll out a template update to the firm? Answer: The following best practice is suggested when rolling a template update out to the firm: 1. Preparing for the installation: The objective of creating a test or dummy file is to do an overall evaluation of what has changed and how this will affect the current Probe MMX template set-up in existing and new client files. Use an existing client file/firm template (IFRS/SME/SAIPA client) and create a back-up; Create a PDF file of the Probe documents before installing the new update/service pack; 2. Installation of the update/service pack: Ensure that the champion has the latest CQS template installed [Important files obtained from the original CQS template are required for installation of the update/service pack]; and Install the update/service pack. 3. Updating the firm template that all staff will use: Open the firm template; Open the financial statements (Document 01.10) in the document manager; On opening the financial statements the Update Wizard will launch; The Update Wizard will allow various options; o Do not take any action; o Deciding not to run this update/service pack can be chosen by clicking on Do not ask me again and Do not take any action ; o Deciding to update this specific client file in future, can be done by clicking on the Options menu and selecting Check for updates. Run update/service pack o In deciding to run this update/service pack, ensure that the option: I have made a backup and want to continue, is checked. 4. Before rolling out the changes to the firm, we suggest the following: Create a PDF file of the Probe MMX Documents after the update has completed; The CaseWare champion needs to evaluate the impact of the update/service pack on the client file/firm template and identify areas where unique firm customisations were lost or where staff will need assistance and coaching; If these changes are aligned to firm standards the customised template can be rolled out to the firm. Please refer to C:\Program Files\CaseWare\Resources\FAQ\5003 FAQ - Packager-Using the CW Packager_Best Practice method; or If not, ignore the update and leave the firm template as is. Page 7

8 5. The recommended roll out process is as follows: There are two considerations here: o New client files: Install the repackaged template onto all the firms PC s so that all new client files are created from this latest version. o Existing client files: Install the repackaged template onto all the firms PC s. The user will be prompted to run the updates when an existing client file is opened. The champion should have instructed all staff, on whether they should apply these changes/updates or not. If the update is necessary, run the update, if not critical only run the update after year end close. Page 8

9 Upgrade Guide Converting Client Files to Latest Templates There are two options for converting client files to the latest version of the templates, namely a file update, or file new from existing. Converting Existing Probe Documents Existing client files can be converted to Probe MMX The conversion process will replace existing documents with the new Probe MMX documents. After conversion, prior year information will NOT be retained. To convert existing client files to the latest version of the template, follow the steps below: We recommend making a backup of the file before commencing with the conversion. Open the Financial Statements document (01.10) in the CaseWare file In order for the update to run, tick the selection box next to the update listing, as well as the confirmation that a backup of the CaseWare file was made. Click Finish to continue. Do not cancel the update if the message on screen reads Not responding. Please do not close the program or shut the machine down until the message stating that the update is complete appears on screen. On new client files, simply follow the update steps above. If you have completed the client file and would like to perform the update in the new year, first perform a year-end close on the file, and then update on the new file as per the steps above. File New from Existing If the latest content from the CQS/Firm template is required, without having to re-enter account information, the new file can be created from existing client data. To create a new file from existing data, based on the latest version of the template, follow the steps below: Open CaseWare Working Papers Select File New in the CaseWare menu. Select the option Create a new file from client data. Select the Existing file option and click Next. Browse for the existing file (this is defaulted to the Data folder). When the file is located, click on Next. Select the new template the file is to be based on and click Finish. Logging into the existing file as well as the new file is required. If the existing file has not been converted to CaseWare 2010, a screen will launch prompting the conversion to the latest version. Select Yes. The On file new wizard will appear. From this window the selection which data should be retained from the existing file, is made. Select the relevant options and click Continue. Page 9

10 Features of the Two Methods Update Method Converts the existing client file. No information and data is retained in the converted file. Takes longer than the file new from existing method. Documents in the Document Manager, e.g. custom documents, are retained, as well as customisation within the CaseWare file with regards to mapping. Cannot be applied to files that were based on a template older than File New from Existing Method Creates a brand new file. No information and data is retained in the new file. Faster than the update method. Customisation (in the Financial Statements and Document Manager), as well as custom documents, are lost in the new file. Can be applied to all CaseWare Working Papers files. Page 10

11 New Client File Setup Create New File Create a new file from the latest template (including Probe MMX). In CaseWare, select the option File New Create a new file. Type in the name of the new file in the New File Name field. Select the template to base your new file on in the Base New File On section. Click OK to create the new file. Client Profile Complete the client profile by going to Engagement Properties in CaseWare. Fill in all the available information in all tabs of the dialogue box. Information Store (10.10) Make sure the Information Store document (named 10.10), in the document manager, is completed before starting. Probe Firm Settings This document assists with the template changes at a firm level. Use the input cells to insert preferences for wording, rates, etc. Percentage used to determine overall materiality; Percentage used for clearly trivial amounts; Percentage used for significant items; Description of assertions; Editing authority levels for documents; Description of team members e.g. engagement partner, second partner, etc. This document can only be accessed by a partner or similar user level. Trial Balance Import all available trial balance information. To import information, go to File Import in CaseWare to select where you want to import information from. Ensure that the trial balance is in balance after importing. Check the profit figure in the CaseWare status bar to ensure that the correct amount is reflected once imported. Page 11

12 Mapping Numbers Ensure that all accounts have been mapped. To map accounts, select the option Accounts Assign Mapping Numbers in CaseWare. Financial Statements (01.10) Check your financial statements against the prior period, ensuring that comparatives agree, balance and that all relevant notes have been switched on. Ensure that the balance sheet balances. Page 12

13 User Guide Probe MMX Review How to activate Probe MMX Review Enable special features To activate Probe MMX Review Open the AFS Go to Options Enable special features You will then be prompted for a password The password is P631UH Open and select Review as the engagement type Pre-engagement Planning Engagement Evaluation The objective of this document is to ensure that firms accept clients who fit their client risk profile, and to ensure that the terms of the engagement have been agreed upon between the firm and the client. The document covers the following topics to assist in agreeing the terms of the engagement, and reaching a conclusion regarding client acceptance: Terms of the engagement Engagement continuance/acceptance Ethical requirements Engagement Letter The purpose of this letter is to assist the user to confirm the terms and conditions of the engagement with management and, where appropriate, those charged with governance Discussions With Those Charged With Governance The objective of this document is to assist the reviewer to document communications with management and, where appropriate, those charged with governance, as well as to prompt the reviewer to discuss pertinent information relevant to the review with those aforementioned. The document is designed for use in a single interview, thus multiple copies of this document must be made for each person the user is interviewing. The document can be tailored for the following interviewees: Member of management and those charged with governance; Member of management and other staff; Member of those charged with governance; Internal audit representative. Page 13

14 The document covers the following topics to be discussed with the interviewee: General Laws and regulations and related party transactions; Going concern Management's assessment of going concern; Subsequent events Management's procedures to identify subsequent events; Fraud Incentives and opportunities within the entity to commit fraud; Accounting, e.g. Significant accounting polices used and management s application in presenting the financial statements Gathering Information The objective of this document is to gain an understanding of the entity and its environment at an overall level. The document covers the following topics in order to obtain an overall understanding of the entity: Considerations; Transactions; Accounting; Overall Materiality Assessment This document assists the user in calculating materiality. In this document the user determines the overall materiality for the engagement. Percentages used for the benchmarks, e.g. the total assets minimum are 1.0% and can all be modified in Probe Firm Settings Areas likely to be misstated The objective of this document is to access areas in the financial statements that are likely to be misstated. The document compares prior and current year balances and forms part of the preliminary analytical review. Work Programs Work Programs The work programs provides the reviewer with standard required procedures, focused enquiries and analytical procedures which the reviewer has to perform on items that are Likely to be misstated. The document is divided into different sections: Required procedures o Exceptions The user states whether he has found any problems during his testing by selecting Yes / No from the dropdown box. o Prepared by This column contains the details of the user completing this document and date of completion. o Reference A reference to supporting documentation can be inserted here, if necessary. Extended analytical procedures o Exceptions The user states whether he has found any problems during his testing by selecting Yes / No from the dropdown box. o Prepared by This column contains the details of the user completing this document and the date of completion. o Reference A reference to supporting documentation can be inserted here, if necessary. Page 14

15 Additional procedures o Additional procedures are only selected if the user identifies that the section may be materially misstated and requires further procedures. o This part of the work program works the same as required procedures and extended analytical procedures. Conclusion The format of the conclusion is based on a questionnaire and should be answered either Yes / No which can be selected from the dropdown box. If the answer to the question is Yes, the step will be signed off, and if the answer to the question is No, further procedures will appear for the user to complete. o The reviewer can turn a work program on, even though he did not identify the item as Likely to be misstated. Page 15

16 90.40 Focused Enquiry Document The objective of this document is to assist the user to document communications with management and, where appropriate, those charged with governance, as well as to prompt the user to discuss pertinent information relevant to a section during the review with those aforementioned. The document is designed for use in a single discussion relating to a review section, thus multiple copies of this document must be made for each additional enquiry procedure the user will perform in each section. (i.e. each section will have a separate document.) This document should be copied and pasted into the section the user is reviewing. Finalisation Subsequent Events Work Program The objective of this document is to: Record subsequent events which the reviewer became aware of; Prompt the reviewer to discuss these events with management; Respond appropriately to facts that became known to the reviewer. The document is divided into different sections: Procedures perform after events have been identified: o Procedure A required procedure is provided to the reviewer. o Comment An input cell is provided where the user should describe the procedures performed. o Event The risk record button is used to raise identified subsequent events. Events identified: o Events identified Description input cell. o Financial statements treatment Insert a description of the financial statement treatment. o Conclusion Insert a conclusion regarding the event. o Reference Insert a reference to the work done on this event Going Concern Conclusion The objective of this document is to: Document events or conditions which may cast doubt on the entity s ability to continue as a going concern, which came to the reviewer s attention during the review. Provide the user with procedures to perform once an event or condition has been identified, which can cast doubt on the entity s ability to continue as a going concern. To determine the implication for the practitioner s report. This document covers the following topics: Events and conditions that may cast significant doubt on the going concern status. Procedures to address, amongst others, the events identified. Conclusion regarding the entity's ability to continue as a going concern Subordination Agreement Checklist The objective of this document is to ensure that the subordination agreement is complete and valid. This document is in a checklist format and is completed by identifying whether the specific line item is covered in the agreement and selecting the check box in the Prepared by column to sign-off the item Overall Analytical Review Page 16

17 The objective of this document is to perform an analytical review during the finalisation stage. The user inserts a reason for the change between the two years in the input cell Evaluation of Misstatements The objective of this document is to reassess overall materiality and evaluate misstatements found during the review. The document is divided into two sections: Materiality reassessment Reassessment of materiality. Evaluation of misstatement When evaluating misstatements the document categorises both corrected and uncorrected misstatements by lead schedule and by ratio category (available in Probe MMX Premium) Senior s Final Checklist The document is designed to assist the senior or team member on a similar level to ensure that the file is complete and ready for review, by the engagement partner. The format of the document is based on a questionnaire and should be answered with either Yes / No which can be selected from the dropdown box Partner Sign-off The objective of this document is for the engagement partner to sign-off on the engagement file, and the review Report To Management And Those Charged With Governance The objective of this document is to report issues found, during the review, to management and those charged with governance. The document is divided into different sections: Covering letter; Weakness report Letter of Representation The objective of this letter is to: Obtain written representations from management, that they believe they filled their responsibility for the preparation of the financial statements; for the completeness of the information provided to the practitioner and that all transactions have been recorded, and are reflected in the financial statements. Page 17

18 Contact us Main Contact Details CQS Reception: ProBeta Accountancy Development Reception: Help Desk Direct Extension CaseWare Working Papers: CaseWare Time: TaxWare: SecWare: CQS Support: ProBeta Support: CQS Web Support: ProBeta Web Support: Other Important Details Register at for easy access to frequently asked questions, upgrades, downloads and technical documentation. us at Feedback Ideas on service or products Product information Account or license information Any other queries Page 18