Icpas Audit Manual For Small Companies

Icpas Audit Manual For Small Companies

Discover everything Scribd has to offer, including books and audiobooks from major publishers. Start Free Trial Cancel anytime. Report this Document Download Now Save Save SG PCAS Guidance Notes For Later 100% (1) 100% found this document useful (1 vote) 696 views 74 pages SG PCAS Guidance Notes Uploaded by Dorian Gray Description: Full description Save Save SG PCAS Guidance Notes For Later 100% 100% found this document useful, Mark this document as useful 0% 0% found this document not useful, Mark this document as not useful Embed Share Print Download Now Jump to Page You are on page 1 of 74 Search inside document Browse Books Site Directory Site Language: English Change Language English Change Language. She was a former member of the Local Executive Committee of the Singapore ACCA Branch from FY 2007 to FY 2010 (as honorary secretary in FY 2010 and honorary treasurer in FY 2009) and a former committee member of the Public Accounting Practice Committee of the then ICPAS. Prior to starting her practice, D’ Ark Associates in May 2007, Helen was a Practice Review Manager with the local regulatory authority. Helen was previously involved as a seminar trainer for the Continuing Professional Education seminars organised by the ICPAS and ACCA specialising in the auditing standards and the local recommended audit manual for small and medium sized companies. Helen is currently a seminar trainer with AcClarity International Pte Ltd. Helen has worked in both the local audit firms and the international audit firms. She has managed and took charge of a portfolio of clients comprising listed companies, multinationals and local enterprises. In addition to managing a portfolio of clients, she had been involved in the Technical Department of one of the international accounting firm, supported the Technical helpdesk and also in the setting up of the Intranet of that Firm.

• icpas audit manual for small companies.

She was also involved in pioneering the implementation of the business process audit methodology and the development of the case studies for training and the drafting of the audit programme templates for the firm. Other than her extensive audit experience in both the international firms and local auditing firms, Helen has been involved on a diversified portfolio ranging from internal audit assignments, and fraud related investigative work. She is experienced in reviewing clients’ business risk management processes, internal control structure, identifying business and related risks. Some of her major assignments include: - Process reviews, risk identification and assessment, identification and analysis of key performance indicators including issuing appropriate recommendations to improving the processes and internal controls for a medium sized main board listed company; - Review processes, risks and controls for Singapore, Malaysia and Shanghai operations of a main board listed group including drafting the SOP for its Singapore operations; - Forensic accounting review for a large European multinational corporation where former senior management staff was suspected of perpetrating fraudulent transactions and misstating the financial statements relating to prior financial years; - Forensic accounting and investigative work on questionable transactions entered into by certain directors relating to the transfer of control of a subsidiary of a foreign listed group to a privately controlled entity via accounting irregularities and legal documentation; and - Fraud risk assessment for a US multinational planning to acquire a large local company in Shanghai. Suat Hoon has more than 15 years of audit experience in reputable medium-sized audit firms and is experienced in handling audit of varying degrees of complexity and industries such as retail, trading, shipping and construction.

She has helped to ensure clients’ compliance with the Singapore Financial Reporting Standards and the Singapore Companies Act as well as assisting clients with their tax matters. She has also helped clients in the preparation of consolidated accounts involving subsidiaries in Singapore, Malaysia, China, United States of America and Australia. Suat Hoon was an Accountant with a company listed in the Stock Exchange of Singapore. Her role has included the participation in the monthly accounts maintenance, liaising with bankers and auditors, ensuring compliance with the GST Regulations and the preparation of monthly cash flows statements. Suat Hoon is also experienced in the review of client’s internal control structures and identification of business and related risks. Prior to joining D’ Ark, Betsy has worked in the Ministry of Finance as an Accounts Officer. Her job scope extended beyond the administrative and procurement functions, including that of participation in the co-ordinating and a liaison with the vendors on the system enhancements and interfacing. Betsy has also been part of the finance team in the Casino Regulatory Authority assisting in the set-up of the accounting infrastructure and reporting enhancements. She has oversight on the operations and assisted in enforcing good practices and controls of the accounts receivable function. She has been involved in and performed audit works in Singapore, the Philippines, Jakarta, Kuala Lumpur and Hong Kong. Betsy has also participated in the internal controls review for certain subsidiaries of Singapore Companies listed in the Stock Exchange of Singapore.

In designing the audit plan, Singapore Standard on Auditing (SSA) 320 Audit materiality provides that an auditor establishes an acceptable materiality level so as to detect quantitatively material misstatements and to evaluate whether the financial statements are prepared, in all material respects, in accordance with applicable Financial reporting Standards (paragraphs 4 and 5). 2. This Practical Guidance aims to provide some practical considerations to auditors when establishing materiality during the planning phase of an audit. Specifically, it discusses the factors to consider in selecting an appropriate benchmark and gives examples of different benchmarks that could be used such as profit before tax, total revenue, gross profit and total expenses, total equity or net asset value. 7. In addition, the revised SSA 320 requires the auditor to determine materiality for the financial statements as a whole when establishing the overall audit strategy and determining the performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further audit procedures (paragraphs 10 and 11). Performance materiality is set to reduce to an appropriately low level, the probability that the aggregate of uncorrected and undetected misstatements in the financial statements exceeds materiality for the financial statements as a whole. Similarly, performance materiality relating to a materiality level determined for a particular class of transactions, account balance or disclosure is set to reduce to an appropriately low level, the probability that the aggregate of uncorrected and undetected misstatements in that particular class of transactions, account balance or disclosure exceeds the materiality level for that particular class of transactions, account balance or disclosure. The performance materiality will determine the nature, timing and extent of audit procedures to be performed. GuIdInG PrIncIPle3.

SSA 320 establishes that The auditor should consider materiality and its relationship with audit risk when conducting an audit (paragraph 2). 4. SSA 320 also states that Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.Thus, materiality provides a threshold or cut-off point rather than being a primary qualitative characteristic which information must have if it is to be useful (paragraph 3). 5. SSA 320, however, does not provide any guidance on the establishment of materiality but merely states that the assessment of what is material is a matter of professional judgement (paragraph 4) and materiality should be considered by the auditor when determining the nature, timing and extent of audit procedures and evaluating the effect of misstatements (paragraph 8). 6. The revised SSA 320 materiality in Planning and Performing an Audit, which is effective for audits of financial statements for periods beginning on or after 15th December 2009, provides some considerations specific to small entities as well as guidance on the use of benchmarks in determining materiality for financial statements as a whole. The materiality established should not be an arithmetic average of the materiality computed based on each parameter. In general, the level of materiality is relative to the size of the business. Although profit before taxation is usually used to compute materiality, there may be circumstances where it is not an appropriate parameter for example, when the company is at or near the break-even point or incurring losses. The auditor may then wish to consider the use of revenue since it would be indicative of the level of business and transactions. For asset based businesses, the auditor should consider using the asset base to compute materiality. 9.

When using profit before tax to compute materiality, the auditor should add back or deduct exceptional items not in the ordinary course of business if these are included in the determination of profit before tax.For a cost-plus company where its principal revenue is determined based on an agreed-upon percentage markup of expenses incurred on behalf of a related corporation, the total of such expenses incurred on behalf may be used as a parameter to compute materiality. The percentage to be applied to this parameter is a matter of professional judgement. 11. The auditor should also consider the materiality established in the prior year as well as the individual balances on the balance sheet and profit and loss account to have an indication of whether the materiality set for the current year is too high or too low. 12. The determination of materiality is a matter of professional judgement. Generally, the materiality established corresponds to the size of the business of the company. In all circumstances, the basis for setting materiality should be adequately documented in the working papers as required under paragraph 2 of SSA 230 Audit Documentation which states that the auditor should prepare, on a timely basis, audit documentation that provides a sufficient and appropriate record of the basis for the auditors report. 3ICPAS QuAlIty ASSurAnCe 2010 PrACtICAl GuIdAnCe Revision on materiality as the audit progresses 13. The auditor should evaluate whether the judgement about materiality remains appropriate as the audit progresses as stated in paragraph 4 of SSA 315 Understanding the entity and Its environment and Assessing the risks of material misstatement. During the course of the audit, the auditor should review the materiality established during the planning phase to determine if the preliminary materiality remains appropriate.

If the preliminary materiality set is too high, the auditor needs to consider if additional audit procedures are required to reduce the audit risk to an acceptable low level. IcPAS Quality Assurance identifies common areas of consideration and aims to offer value adding practice development publications and organise relevant events to support the Institute in its efforts to uphold the standard of the accounting profession. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business.Whilst every care has been taken in compiling this document, IcPAS makes no representations or warranty (expressed or implied) about the accuracy, suitability, reliability or completeness of the information for any purpose. IcPAS, its employees or agents accept no liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from IcPAS. Consolidated and Separate Interim Financial Notes to the separate financial statements - ENEL.Determine a materiality level for the overall financial statements. End of Chapter 3 3-13. Title: Chapter 1 Author: Financial Statements (Statement of Financial Position. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.If you wish to opt out, please close your SlideShare account. Learn more.

You can change your ad preferences anytime. Why not share! Now customize the name of a clipboard to store your clips. As dedicated industry leaders, the professionals of the Grassi Construction Practice can give you the tools to develop and implement your strategic vision, improve operational flow and efficiencies and make the nontraditional design a profitable building reality. In addition to traditional accounting, auditing and tax services, CICPAC members distinguish themselves by providing management and consulting services that meet the increasingly complex needs of construction companies. Our Construction Industry experience is unmatched. Our professionals are committed to the Industry and keeping abreast of industry trends and best practices. Evidence of this and our specialized qualifications is demonstrated by the following: Construction Partners, authored the Construction Industry chapter of the Corporate Controller's Manual Industry Participation and Investment: Grassi has made significant investments of time and resources in becoming leaders in the construction industry. We have partners who have served on boards and advisory panels of numerous industry trade organizations, including: The list was compiled based on survey data collected from hundreds of U.S. accounting firms serving businesses in the construction sector. The financial and operational implications of these changes are worthy of consideration. While many factors will influence this recovery, Construction Practice Leader Carl Oliveri explains the ones that stand out as especially critical to contractors' growth and success. The PPP Flexibility Act corrected some of these deficiencies and created more parity for PPP borrowers, especially those in metropolitan areas like New York City. Our Contruction and Healthcare Consulting professionals provide their insights into what contractors can do now to prepare to restart their operations and workforces later.

Construction Partners Michael Hochman and WIlliam Hughes explore the ways to mitigate the most common areas of contractor risk. One of those vehicles is the concept of phantom stock, a unique method to engage key personnel and to vest them in the long-term profitability and health of the construction company. Some say it is likely to continue in 2019 as companies continue to earn higher and higher revenues and maintain healthy and growing backlogs. Choosing the wrong ERP system can potentially hold a company back, however, the right system can substantially propel a company forward—especially in the areas of cash flow and profitability. This has been a hot topic the last few years and is likely to continue in 2019 as companies continue to earn higher and higher revenues and maintain healthy and growing backlogs. The Tax Cuts and Jobs Act (“TCJA”) was adopted at the end of 2017 with most of it effective January 1, 2018. The Financial Accounting Standards Board issued “ ASU Revenue From Contracts With Customers (Topic 606)”, which is effective for public business entities, beginning after December 15, 2017; and private companies for periods beginning after December 15, 2018. If construction contractors are not already implementing these new ways to build, they’ll be as obsolete as the dot matrix printer. Here are three tips that can have a large impact on insurance premiums. The law will apply to all employees who are covered by the state’s temporary disability insurance law, regardless of their employer’s size, and who have been employed for 26 or more consecutive weeks. The most important challenge to having these cohesive principles adopted by the majority seems to be lack of industry understanding of Lean. As part of Phase One in many states’ reopening plans, contractors are the first to implement COVID-19 safety measures and risk management strategies. Who’s to blame and what costs, if any, can potentially be recovered?

What have we learned from the industry’s rebound after past crises, and what lessons can be applied to our current situation? This virtual, interactive experience will feature NYC local leaders, regulators and safety experts discuss the latest developments in the OSHA 30-hour outreach training, workplace hazard prevention, safety policies and new infectious disease concerns. This means that private construction companies now have mere weeks to prepare for compliance. All the firms in MGNL are independent entities, owned and managed in each location. Their membership in, or association with, Moore Global Network Limited should not be construed as constituting or implying any partnership between them. The proposals extend the scope of the extant standard and the auditor’s responsibilities and include suggested auditor reporting responsibilities. If you are not registered, you will be prompted to create an account. IFAC respects your privacy and will not send you unsolicited email or spam. If you would like to subscribe to IFAC publications, you can change your subscription preferences or manage your user profile at any time. If you do not have an account, please register below. IFAC respects your privacy and will not send you unsolicited email or spam. You can subscribe to IFAC publications, change your subscription preferences, or manage your user profile at any time. Want to include IFAC's publications in your training materials or university course. Learn how we can help. These valuable works are the product of substantial time, effort and resources, which you acknowledge by accepting the following terms of use. You may not reproduce, store, transmit in any form or by any means, with the exception of non-commercial use (e.g., professional and personal reference and research work), translate, modify or create derivative works or adaptations based on such publications, or any part thereof, without the prior written permission of IFAC.