Introducing C-PEM
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description
Introducing C-PEM . Stuart Hartley FCA CA.IT [email protected]. Volume 1 Core concepts Audits, reviews and compilations Volume 2 Practical Guidance Includes 2 integrated case studies Part A Audits Part B Reviews Part CCompilations - PowerPoint PPT Presentation
Transcript of Introducing C-PEM
Volume 1 Core concepts ◦ Audits, reviews and compilations
Volume 2 Practical Guidance Includes 2 integrated case studies ◦ Part A Audits◦ Part B Reviews◦ Part C Compilations◦ Part D Practice Aids
(forms etc. on a CD)
Three Audit Phases
Plan the audit
Performrisk assessment
procedures
Evaluate the audit evidence obtained
Prepare theauditor’s reportRi
sk A
sses
smen
t
Risk
Res
pons
e
Repo
rtin
g
Implem ent responses
to assessed RMM
1. 2. 3
14 AuditSteps
Risk Assessment
1. Perform preliminary activities
2. Determine materiality
4-6. Perform s:RAP
Entity-Specific
Transactional
Pervasive
7. Conclude: Assessed risks
at F/S level
Assessed risks atassertion level
What are the in the F/S ?RMM1 2
Risks
Risks
Risks
Controls
Controls
Controls
3. Plan sRAP
10. Perform planned responses
11. Evaluate evidence obtained
Risk Response
8. Design appropriate audit responses:
9. Finalize audit plans
Did material misstatements occur?
Reporting
12. Communicate (findings, misstatements and significant control deficiencies)
13. Complete the audit file (file and F/ S reviews, final An Rev, subsequent events and approvals)
14. Form an opinion (appropriately word and date auditor’s report)
Evaluating/communicating findings, and forming an opinion
Assessed risksat F/S level2
Assessed risks atassertion level
Overall responses
Further audit procedures Communicate audit plan to
management/ TCWG
The C•PEM Case Studies
Case Study A?Cambridge Furniture Inc.
Case Study B? Kennedy & Co.
Completed Documentation Provided
Standard C•PEMForms
Structured Memos and CondensedC•PEM forms
C•PEM Volume 2
Business Furniture Production Furniture Parts
Sales $1.5 million $ 230,000
Staff 8 2 + owner
Design of C•PEM Forms
FAQ Responses
Purpose? Structure for documenting work performed.Assistance in complying with CAS requirements
Training required? Yes Forms are not a substitute for reading CASs
Ease of use? Forms have objectives, instructions and consider points to facilitate ease of use
Why data bases instead of checklists?
Enables quick and consistent assessments of risk
Enables re-use of forms (cost saving) by updating the data in subsequent years
How easy to review? The databases (such as risk registers) are structured to facilitate file review
What are C•PEM “worksheets ”?
Use ONLY when applicable
C-PEM Audit Documentation
Standard C•PEM Forms
Condensed C•PEM Forms
StructuredMemos to File
ObjectivesInstructionsCAS requirementsConsider pointsComprehensive
Objectives
SummarizedCAS requirements
Custom
FocusROI Services In house and web based Training
Quality Control Monitoring
Small group Coaching www.focusroi.com
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