2018 Commercial Entities Title – Updated & Enhanced

Check Out 2018 Knowledge -Based Audit of Commercial Entities

Are You Ready for 2018 Commercial Entities Audits? Available in August 2018, the Knowledge-Based Audit of Commercial Entities title is for CCH ProSystem fx Knowledge Coach. It is time to get up to speed on the changes, and get ready to increase your realizations and improve your client service.

Changes Based on the Latest Literature, Standards, and Guidance

Check out the changes based on the latest literature, standards, and guidance.

  • AICPA Statement on Auditing Standards (SAS) No. 133, Auditor Involvement with Exempt Offering Documents, including the addition of AUD-915 Audit or Interim Review Program: Auditor Involvement with Exempt Offering Documents
  • Audit recommendations from AICPA’s Audit and Accounting Guide: Revenue Recognition, including several new revenue related steps in AUD-803 Audit Program: Accounts Receivable and Revenue
  • Tips for the new proposed statements on auditing standards and new finalized FASB standards, including Omnibus Statement Auditing Standards, 2018
  • To assist users whose clients have adopted the new Revenue Recognition Standards, included is a new RES-027 Controls Related to FASB ASC 606, Revenue from Contracts with Customer – Five Step Model
  • Also included for auditors performing engagements under AU-C 805 is a new AUD-910 Audit Program: Specific Element, Account or Item of a Financial Statement in Accordance with AU-C 805

Knowledge Coach Changes

Beginning with the 2018 Commercial Entities title, you will also see these changes in the Knowledge Coach version. Our goal is compliance, improved workflow, and an enhanced auditing experience for our users.

  • Links to TeamMate Analytics throughout the AUD-800 series programs, to assist the auditor with analytical procedures that are beneficial in the audit process
  • Enhanced instructions and procedures throughout the toolset to improve workflow
  • Reorganization of multiple areas within the Audit Programs to increase efficiency and improve workflow
  • New columns in the workpapers documenting internal controls (KBA-400s) to improve workflow and address questions customers have raised in the past
  • Enhancements to the activity-level control forms with updated subprocesses and activity-level control objectives throughout all the KBA-403 series workpapers
  • Changes to the benchmark/rule of thumb percentage table in KBA-301 Worksheet for Determination of Materiality, Performance Materiality, and Thresholds for Trivial Amounts, so users will be able to document a separate benchmark and rule of thumb percentage not used in the KBA methodology.
  • New comments table in AUD-100 Engagement-Level Tailoring Questions to document any information you want to capture related to tailoring

Begin Using KBA Commercial 2018 Before Upgrading

Additionally, we are releasing an application update alongside 2018 Commercial. Doing this allows installing 2018 Commercial, and later, titles on Engagement v2017. Therefore, Knowledge Coach users can use the 2018 KBA Commercial title before the firm updates to ProSystem fx Engagement v2018.1.1.

Early Adopter Program Available

For the second year, we are making our full production release available to 100 customers later in June 2018 through our Early Adopter Program. To participate in the Early Adopter Program, email kim.conaway@wolterskluwer.com directly.

Tips to Improve Realizations & Client Service

Regarding increasing your realizations and improving your client service, it is critical to find ways to maximize efficiencies. Doing so ensures a healthy bottom line and improved client service. Consider these tips:

  • When you roll-forward your prior year engagements, make sure you get the latest content updates. Also, make sure you keep your responses, where it makes sense. Then, you simply review for changes.
    • CCH ProSystem fx Knowledge Coach allows updating to the latest content at any time, while keeping your answers and customizations. Take advantage of the saved time and start your planning!
  • Give yourself a head start by reducing your client’s “PBC” list by approximately 25% through technology.
    • CCH Audit Accelerator requests all the data you need from your client’s general ledger, accounts payable and accounts receivable sub-ledger. It then transforms that data into the most commonly used workpapers, including access to the detailed transactions. Then, with TeamMate Analytics, you run analytics to see the anomalies or risky transactions more quickly for planning a higher quality audit. What you gain is more answers at your fingertips and, ultimately, a more informed view of your client at the beginning of each engagement.
  • Tailor your audit programs in direct response to the client’s risk. This helps avoid over and under auditing. Plus, you get the ‘best bang for your buck’ with your audit procedures.
    • By design, Knowledge Coach easily ties risks to audit procedures. The result is a higher quality and more efficient audit and, thus, a happier client.

Are you interested in increased realizations and improved client service? Then check out the Integrated Audit Approach today.

AUTHOR

Kurt Pitts

Kurt Pitts is a Senior Business Analyst at Wolters Kluwer Tax and Accounting North America. Kurt participates in design and development of CCH® ProSystem fx® Knowledge Coach. Kurt also works with internal teams, editorial and customers to provide new features and industry titles for CCH® ProSystem fx® Knowledge Coach. Prior to joining Wolters Kluwer in 2014, Kurt was a CPA with a top Southeast Regional Accounting Firm and has a Bachelor’s Degree in Accounting from Georgia Southwestern State University.

All stories by: Kurt Pitts