2018 Single Audits – Updated and Enhanced

When it comes to audit methodology for single audits, the best methodology available to you is Wolters Kluwer’s Knowledge-Based Audit (KBA) Methodology. As a result, use it and you will:

  • Implement AICPA risk-based standards
  • Conduct a more productive audit
  • Produce the highest-quality audit possible

In addition, Knowledge-Based Audit Titles utilize the KBA Methodology. For this reason, it also helps you perform more effective and efficient financial statement audits. With this in mind, here is a look at the updated 2018 Single Audits title. Begin your planning by reviewing these changes.

What’s New for 2018 Knowledge-Based Single Audits?

First, the 2018 Knowledge-Based Single Audits will be current through:

  • AICPA Statement on Auditing Standards (SAS) No. 133, Auditor Involvement with Exempt Offering Documents
  • Government Auditing Standards
  • AICPA Code of Professional Conduct (Code)
  • ET Section 1.295, Non-attest Services
  • 2018 OMB Compliance Supplement
  • 2018 Data Collection form and discussion of the Uniform Guidance
  • 2CFR200, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (the Uniform Guidance)
  • Provisions of the updated Committee of Sponsoring Organizations (COSO) 2013 update to Internal Control —Integrated Framework
  • Government Auditing Standards, December 2011 Revision (Yellow Book)

Multiple New Enhancements

Additionally, there are multiple new enhancements, including:

  • 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 sub-processes and activity-level control objectives throughout all the KBA-402 series workpapers
  • New comments table in AUD-100 Engagement-Level Tailoring Questions to document any information you want to capture related to tailoring
  • The type of finding, “Noncompliance” has been modified as, “Noncompliance or Abuse”
    • Current findings listed as “Noncompliance” will retain on roll-forward if set to keep
  • Enhanced instructions and procedures throughout the toolset to improve workflow
  • A new example planned response to Management Override of Controls in KBA-502, which flows to the AUD-800 series
    • This can be modified in the risk pane for the Financial Statement Level Risk of Management Override of Controls and should be modified by the user based on the specific audit
  • Updated AID-301S Single Audit Applicability and Major Program Determination Form for changes in clusters in the 2018 Compliance Supplement and modified headers and instructions to improve usability
  • Enhanced how compliance risks flow to KBA-102S
    • Compliance risks will no longer flow multiple times to KBA-102S instead they will flow once but will be linked to the multiple compliance areas if done so in the risk pane
    • This will help cut out the duplicate documentation required in KBA-102S

Tips to Improve Realizations & Client Service

Remember, increasing your realizations and improving your client service is critical to maximizing efficiencies. A healthy bottom line and improved client service are both important. With that in mind, 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!
  • Tailor your audit programs in direct response to the client’s risk. This will help you avoid over and under auditing, and give you 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.
  • Give yourself a head start by reducing your client’s PBC list by approximately twenty-five percent 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
      • A more informed view of your client at the beginning of each engagement

 

Wolters Kluwer’s Integrated Audit Approach

Indeed, those solutions are part of Wolters Kluwer’s Integrated Audit Approach. Additionally, CCH ProSystem fx Engagement and CCH Accounting Research Manager are the other two that complete the set. Moreover, the Knowledge-Based Audit Methodology is essential to why this approach delivers higher quality audits while improving productivity through process improvement. Ultimately, the approach keeps you prepared for changes to auditing, peer review, and regulatory standards. In other words, it helps you stay ahead of your competition.

Obviously, firms want to increase realizations and improve client service. Do you agree? Then there is no time like the present to educate yourself a little more regarding how Wolters Kluwer can help. Check out the various links in this blog, and then register to see these solutions with your own eyes!

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