CCH Audit Automation v4.30 Release Notes Information Fee Protection Software Magazines Professional Development
Disclaimer CCH Software has made every effort to ensure the accuracy and completeness of this Upgrade Guide. However, CCH Software, its staff and agents will not be liable for any errors or omissions and use of the software is subject to the customer s licence with CCH Software. This Upgrade Guide should not be relied upon as a detailed specification of the system or the software. CCH Software may make changes to this Upgrade Guide from time to time. Copyright 2011 Wolters Kluwer (UK) Limited (trading as CCH Software) This Upgrade Guide may not be copied, altered, edited, disposed of or distributed without the prior consent of CCH Software. The content is confidential Trademark Rights Microsoft, Windows, Windows NT, Windows for Workgroups, Windows 98, 2000, XP, MS-DOS, Windows Vista, Windows 7, Windows Server, Microsoft SQL Server, and Microsoft Office, are either registered trademarks or trademarks of Microsoft Corporation. Novell and NetWare are trademarks of Novell Inc. Citrix MetaFrame is a registered trademark or trademarks of Citrix Systems, Inc., All rights reserved. CCH Software 145 London Road, Kingston upon Thames, Surrey KT2 6SR UNITED KINGDOM
Contents Contents of Release 1 Installation 2 Obtaining and installing the update from the Web 2 Downloading 2 Installing 2 Installation options 2 Software Enhancements 3 Restricting editing of an identified risk to person who raised it 3 Materiality 3 Linking of tests 4 Sub analysis in Preliminary Analytical Review 5 Default identified risks 6 Single user access when viewing the Trial Balance and Materiality 7 Attaching risks and controls to audit areas where assertions are not defined 7 Selection of multiple assertions 7 Reason for test 8 Basis of risk factor selection in sample stratification calculator 9 Automatic association of mandatory tests to assertions 9 Automatic removal of orphaned files on a balance forward 9 Emailing Audit Automation users 10 Export audit programmes and checklists to Word or Excel 13 Software Corrections 14 Read only flag incorrectly set 14 Toggle standard tests inactive 14 Materiality review not required 14 Unable to sign off if partner questions still outstanding 14 Trial balance shown as out of balance when suppress zero balances is selected 14 Master Pack Definition Enhancements 15 Sub analysis in Preliminary Analytical Review 15 Default identified risks 16 II
Contents of Release This document describes the functional enhancements and corrections included in version 4.3 of CCH Audit Automation. Please see the following sections for full details: Installation Software Enhancements Software Corrections Master Pack Definition Enhancements CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 1
Installation Obtaining and installing the update from the Web Downloading Load your Web Browser, and go to www.cch.co.uk/softwaresupport, click on Download Centre in the menu on the right and follow the steps outlined below. If you have not yet created a user account you will first need to do this via the option called Not yet registered. If you already have an account, log into the system with your user name and password. Click on the [+] to the left of Audit Automation and then on the one by Software downloads. Click on the link to Audit Automation Software Updates and then on the link under Latest versions to download Audit Automation software update 4.3. Select the option to save the file to disk and store it in a temporary directory on your hard drive, (assumed to be C:\TEMP in the following instructions). Installing Please make sure that no users have Audit Automation open before running the installation as on the first access of the master packs the data will be updated and this will fail if another user has the master pack open in the existing version of the software. 1. Click on [Start] and then on Run... 2. Enter C:\TEMP\CCH AA Update 4.3.EXE, or select the file using the [Browse] button, and click on [OK]. 3. Follow the instructions on the screen, see below for installation options. The above assumes that you downloaded the file to C:\TEMP, if you stored it elsewhere; enter the path you used in step 2 above. You will need the password sent to you with the update notification to install the update. Installation options The installation program will offer you our standard default directory called PROACC\PROauditV3 on Drive C. If you have installed Audit Automation elsewhere, you must change the directory to that which you used for the original installation. If you wish to make use of the automated software update facility, then you must change the directory to the central update folder on your network. Note: Please note that when using the automated update facility the system will update the local configuration file if a file called PROAUDIT.INI exists in the update folder. If this is not to happen please make sure that this file is not present. 2 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Software Enhancements Restricting editing of an identified risk to person who raised it Up to now, the system has restricted the editing or deletion of identified risks to the person who raised them, or someone of the same access level or above. This can cause an issue when on site if the risk needs to be updated by a user who has a lower access level, particularly after balancing forward where risks need updating for the following year. To overcome this we have added an option allowing practices to select if they would like the ability for risks to be editable by staff with lower levels than the user who created the risk. A new option has been added to the System options tab of the System settings dialog: If this option is ticked, the system will allow users with an access level of senior or above to edit or delete identified risks no matter who raised them. Note that this setting is stored in the Address.ini file so that you can use the automated client update routines to propagate the setting after it has been changed. Please contact support if you require further details on how to use this facility. Materiality In version 4.2, we introduced the concept of Performance and Sampling materiality. These are set as a percentage of base materiality and are fixed in the master pack. Although performance materiality could be overwritten on an area basis, and sampling materiality can be overwritten for a sample, there was no facility to change these figures on a global basis for the client. We have therefore enhanced the system to allow the auditor to edit the percentage used at the client level to calculate these figures. A new section has been added to the foot of the Materiality Override window allowing the user to change the percentages used. When you first access the client, these figures will default to the settings from the master pack. If you wish to apply different percentages for this client, click in the % to apply edit box and change the figure. On changing this, the system will recalculate the Calculated figure to show the revised figure. Where you have overridden a percentage used, the system will not allow you to save your changes without providing a Reason for override. Enter the reason in the field provided. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 3
Linking of tests When assessing risk and designing audit programmes in respect thereof, you are currently restricted to selecting test from the pool of tests for the audit area being assessed. For controls and identified risks, the facility did exist to allow you to select tests from different areas, however this had to be done from the Audit Area Risk Assessment window of the area from which the tests were to be selected, or using multiple calls from the Identified Risk or Key Control dialog. We have enhanced the software to allow you to link tests from multiple audit areas to an assessed risk and made it easier to link tests from multiple areas to an identified risk or control. The Pool of audit tests dialog has been updated to make the Audit area selectable using a drop down list. When this dialog is called, the audit area will default to the primary area, i.e. the area that is currently being assessed, or the area selected in the Financial statement area list of the risk or control. The dialog is used as before, selecting the tests that you wish to link to the risk or control and clicking [Add ticked] to add then to the designed programme. However, if you wish to select tests from a different audit area, you can now select the new area from the drop down list and the tests relating to that area will be displayed for selection. Tick the tests to be used, followed by [Add ticked] in the normal way. 4 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Note that you can only select tests from one audit area at a time. Hence, if you wish to select tests from more than one area, you must make multiple calls to the dialog. To enforce this, if you tick some test to add and then try and change audit area without selecting [Add ticked], the system will warn you and not allow the area to be changed. When viewing programmes from the current audit file in review mode, all tests linked to the risk, reliance or control will be shown no matter which audit area the test was drawn from. When viewed in completion mode, the combined audit programme will only show tests that are drawn from the pool of tests for the area being shown. Sub analysis in Preliminary Analytical Review We have added the ability for the master pack author to add sub analysis to audit areas in the preliminary analytical review. Any such sub areas will appear in all clients attached a master where they have been defined. When you access the PAR in the client s audit pack any sub analysis areas that have been defined at master pack level will appear with the icon by the sub area name. In this example, the master pack contained 3 sub areas analysing Debtors and Prepayments into its associate parts. When you first attach a client to a new master pack where sub areas have been defined, they will appear in the client even if you have previously defined your own sub areas in the client s data. This could result in duplication if you have previously defined a sub area that is now included in the master pack. If this occurs, you can remove the client level sub area, you will not be able to remove the master defined sub level. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 5
Although you cannot remove the master level sub areas, you can edit them. If you select a master sub area and click on [Edit], the system will display the edit dialog and you are free to change any of the data shown, in the same way that you can for client sub areas. Default identified risks A new feature has been added that allows the authors of master packs to define default identified risks that will apply to all clients that are created and linked to the master. When you create a new client these risks will automatically appear in the client and will be flagged as risks that should be carried forward on balance forward. Risks defined in master packs will not be added to existing clients. Once created, the risk can be edited to customise it for the client and audit procedures designed as required. The risk can also be deleted if it is not appropriate to the client. This can be done by any user with a level of senior or above irrespective of the new setting described in Restricting editing of an identified risk to person who raised it. 6 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Single user access when viewing the Trial Balance and Materiality Due to the locking of files, when you open the Trial Balance and Materiality dialogs, the system would only allow access to these dialogs if no other users were in the audit pack and blocked other users access if these were open. This caused frustration as access to these dialogs during completion is normally to review the data only. We have therefore changed the system so that it now allows access to both dialogs in read only mode even if you have other windows open and if other users are in the pack. In this mode you can review and print the information but not edit it. If you wish to edit any of the data shown on the screen, click on the [Edit] button that appears at the foot of the dialog and, provided you have no other windows open and are the only user in the pack, the system will remove the read only setting allowing you to edit the data shown. Attaching risks and controls to audit areas where assertions are not defined Some audit areas are defined in the master pack with no assertions associated with them, e.g. the final review section. This caused an issue when the user wanted to raise and identified risk or key control and associate it with that area. To overcome this, for areas where no assertions are defined, the system now lists all assertions when displaying the Area and associations affected by dialog. This will allow you to associate the risk or control with the area and with any assertion. Selection of multiple assertions Where there was a requirement to associate a risk or control to multiple assertions in an audit area, you had to call the Areas and assertions affected by. dialog multiple times, once for each assertion. We have changed this dialog so that the list of assertions is displayed as a checkbox list rather than a simple list, see above screen shot. To select assertions, tick one or more assertions in the list and then click on [OK]. All assertions will be added provided the area/associations are not already associated with the risk or control. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 7
Reason for test Audit tests from the pool can be included in the audit pack for a number of reasons, they could be mandatory tests or be activated by being linked to reliance, a risk or a control. Although you can see the reason for the inclusion of the test in Review Mode, when the audit file is displayed in completion mode this information was not displayed. We have therefore enhanced the display of the combined audit programme so that the reasons why the tests have been included are listed below the text of the tests. This takes the format: [Audit procedure for] Mandatory procedure Name_of_procedure_programme Key control 99: First_50_characters_of_txt +.. Identified risk 99: First_50_characters_of_text +. Control reliance for [Name_of_assertion] [Level_of_reliance] reliance [(Aduit_Area)] Non-sampling reliance for [Name_of_assertion] [Level_of_reliance] reliance [(Aduit_Area)] Residual for [Name_of_assertion] [Level_of_risk] risk [(Aduit_Area)] Note that the audit area will only be shown if it is not the audit area to which the test belongs. This additional information will only be displayed when the checkbox Show comments and notes is ticked. 8 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Basis of risk factor selection in sample stratification calculator When the system selects the risk factor for use in a sample calculation it reviews the risks that it is attached to and selects the highest level of risk found. This information has not been visible to the user so we have added a new option to the calculator to allow this data to be viewed. A new icon has been added to the left of the risk edit box in the calculator. When you click on this the system will display a popup window showing why the level of risk was selected. In the case shown, the test is linked to both Valuation and Existence and the higher level of risk, associated with Valuation has been used. Clicking the mouse button, or pressing a key, will close the window. Automatic association of mandatory tests to assertions When you first design a programme for Residual Risk in the Area Risk Assessment dialog, the system analyses the standard audit program to see if there are any standard tests that relate to the assertion on which a risk has been assessed. If any are found they are automatically linked as audit procedures relating to the assertion. This concept has now been extended to mandatory tests. From this release, when you open the Test for selection dialog for Reliance on test of controls, Reliance on non-sampling substantive tests or Residual risk, if there are not any tests currently planned the system will analyse the mandatory programmes and automatically include any relevant tests that are active for the audit. Automatic removal of orphaned files on a balance forward Due to an issue that was rectified some time ago, some physical files relating to the working papers that had been removed from the audit file remained in the Documents folder for the client. This takes up unnecessary CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 9
space and is compounded each year as further backups are taken. There is a routine in the support program to remove these orphaned files, however it has to be run on each client individually. To assist in the removal of these files, we have added the routine to the balance forward procedure so that over the course of a year all orphaned files will be removed. During the balance forward routine, after backing up the client, the system will check for orphaned files and, if any are found, display the following dialog: The assumption is that these files are not required and hence they will all be ticked by default but you can remove any of the ticks by clicking on the checkbox. Ensure that all files that you would like deleted have a tick against them, any that are not ticked will be retained. If you have removed any ticks, you can click on [Select all] to tick all items. Finally select [Remove selected files] to delete the files from the system and proceed with the balance forward. If you do not wish to remove any of the files, simply close the dialog. Warning: This action is irreversible, deleted files cannot be recovered, other than from your backup archive. Emailing Audit Automation users A new facility has been added to allow you to email notes and other items to Audit Automation users direct from the audit pack. Edit password and user details dialog A new filed has been added to this dialog to allow you to record email addresses of users: 10 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
You can either type the mail address or select it from the Exchange address book using the [Address book] button. System managers can enter and amend any users email address. Other users can edit their own email address. Staff details form It is also possible to enter the email address for staff allocated to the audit to cater for audit staff that are not recorded as users in Audit Automation. This field can be left blank for staff that are recorded users and the system will default to using that stored in the user file. If you enter an email address here for a member of staff that is recorded as a user, it will be used in preference to the email address in the user file. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 11
Creating an email A [Send] button has been added to the following dialogs. Note dialog Note action dialog Refer note dialog 12 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Clicking on [Send] from the above dialogs will result in an email being composed based on the information displayed for sending to all staff recorded in the staff file at the level to which the note is addressed. This will be displayed on the screen for you to edit before sending. If you are using Outlook, the Outlook send dialog will be used, if not then the internal email dialog will be used. View report window Clicking on the [Send] button will result in the report being saved as a PDF file, just as though [Save report] had been selected and an email being generated with the report attached. In this case the To field will be blank and you can enter the recipients as required. Export audit programmes and checklists to Word or Excel Buttons have been added to the Audit Programme Completion and Checklist Completion dialogs to allow you to export the contents currently displayed on screen to Word and Excel. Clicking on one of these buttons will open the relevant application and display the programme or checklist. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 13
Software Corrections Read only flag incorrectly set We had received a number of reports that the read only flag was being incorrectly set on working papers that had not yet been reviewed and that users had to remove this flag using Windows Explorer. We have identified 2 possible areas where this could happen: 1. Imported documents could be left in a read only state where the original file was read only as the system did not reset the read only flag after copying the document. 2. There could be a situation where the read only flag was not reset on all documents after a balance forward. We have addressed both of these in this release. Toggle standard tests inactive In the Customise programmes dialog, there is an option to toggle tests inactive. This option allows the planner to remove tests that are currently included in the audit file. Historically, the system has allowed the planner to toggle tests inactive even if the test had been linked to a risk or a control. If you did this the test still appeared for completion when you viewed the current file in review mode but it did not appear in the standard audit programme. To rectify this, the system now checks if the test has been linked and, if it has, it will not allow the planner to toggle it inactive. Materiality review not required In version 4.2 materiality had to be evidenced as reviewed even if no materiality base was defined in the master pack to which the client was attached, e.g. a non-audit pack. We have suppressed this so you are no longer prompted to carry out the review if no materiality base is present. Unable to sign off if partner questions still outstanding In certain circumstances the system was incorrectly including outstanding partner level questions when checking if lower user levels could sign off. This has been corrected. Trial balance shown as out of balance when suppress zero balances is selected If you have a situation where agreed audit journals are posted to an account that has a zero balance in the client s trial balance, the system suppresses this account in the trial balance grid when it is displayed without zero balances even if audit journals are included. This gives the impression that the TB is out of balance. We have addressed this by the system treating such accounts as non-zero whether or not audit journals are included in the display. 14 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
Master Pack Definition Enhancements Sub analysis in Preliminary Analytical Review The definition of sub areas is carried out via the Control data dialog for the audit area. A new button, called [Sub areas] has been added to this dialog. To add or edit sub areas, select the [Sub area] button and the following dialog will appear. From here you can add, edit or delete sub areas. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 15
Adding a sub area To add a sub area click on [Add] and the following dialog will appear. Enter the name of the sub area and the definition of how it will be calculated. The definition follows the same format as that for user added sub areas and can be a mixture of classifications, single accounts and account ranges. To include classifications simply enter the classification code, account numbers can either be entered singularly or as a range, e.g. 700:709. Any number of elements can be entered separated by +. The pick list to the right of the field allows you to select classification code and account numbers from a pick list. After entering the data, click on [OK]. Editing a sub area To edit a sub area, select an existing sub area form the list and click on [Edit]. The above dialog will be displayed populated with the existing data and you are free to edit either field before clicking on [OK] to save your changes. Deleting a sub area To remove a sub area, select it in the list and click on [Delete]. The system will ask you to confirm your instructions before removing the entry from the list. Default identified risks A new facility has been added to define identified risks at master pack level. Any risk defined will be added to new clients when they are created, they will not be added to existing clients associated with a new version of a master pack. To create or edit risks at master pack level, double click Default identified risks under Risk model from the Maser options list. 16 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011
The Identified risks dialog will be displayed. From this you can add, edit or remove identified risks. Adding a risk To add a risk, click on [Add] and the Identified risk dialog will be displayed. CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011 17
This dialog is completed in the same way as the dialog used to enter an identified risk at client level, but not all fields are mandatory when entering a risk at master level. Description of risk Profile and justification Significant risk Financial statement area/assertion Enter a generic description for the risk. This can be edited for the client once it has been created. Unlike risks created at client level, you can leave these fields blank. However, you can complete these fields if appropriate. Tick if appropriate. You must select at least one financial statement area/assertion combination. Click on [OK] to save the risk. Editing a risk To edit a risk, select the risk in the list and click on [Edit]. You are free to change any of the details shown before clicking on [OK] to save your changes. Any changes made will only affect new clients created after the change it will not affect risks recorded for existing clients. Deleting a risk To delete a risk, select the risk in the list and click on [Delete]. The system will ask you to confirm your instruction before removing the risk from the list. 18 CCH AUDIT AUTOMATION V4.30 - DECEMBER 2011