Progressive Involvement Record – Planning



Progressive Involvement Record (PIR)ApplicationType of audit and assurance workType of entitiesThese instructions apply to financial statements audits or other audit or related services performed by Audit Service Providers (ASPs).departmentsstatutory bodiesstate owned corporationscompaniesuniversitieslocal councils, county councils, joint organisations and council entities.InstructionsEngagement Controllers (ECs):must for each contracted audit, complete a Progressive Involvement Record (PIR) progressively throughout the auditshould send the PIR to the ASP to pre-populate with file references prior to reviewing the file/holding discussions with the ASPmust ‘sign-off’ the PIR at various stages of the audit within the audit file. If the EC is not the ‘signing officer’ (SO) they must ensure the SO also signs-off the PIR at various stages of the audit, such as the planning and execution/completion stages.Instructions for Audit Service Providers (ASPs):The ASP should pre-populate the PIR with the file references prior to the EC reviewing the file and/or holding discussions with the EC.ObjectiveThe template helps the EC and SO:demonstrate their involvement throughout the auditconfirm they have performed their responsibilities in accordance with Audit Office policies and procedures.DocumentationFile the PIR in the audit file.File all external correspondence (both issued and received) in HPCM. The section ‘Guidance – key documents’ provides guidance on the documents that should be saved in HPCM and the audit file.Progressive Involvement Record – PlanningAONSW Involvement RecordASP file referenceComments[record actual involvement and relevant references where necessary]Pre-engagement activitiesA signed contract is in place for this engagement between the Auditor-General and Audit Service Provider (ASP).Changes to key audit team members (Partner, Manager, Team Leader) have been notified to me and the ASP Partner has confirmed that the audit team members have the appropriate qualifications and experience.Need for an EQCR has been considered by both the ASP and the Engagement Controller (EC).The engagement team complies with independence and rotation requirements of the Audit Office and APES 110 ‘Code of Ethics for Professional Accountants (including Independence Standards)’.Planning meeting has been held with the auditee, ASP and Audit Office representative [inquiries made as to any fraud and/or risk of fraud].Annual Engagement Plan (AEP) has been issued within required timeframes.Acknowledgement of terms received (where applicable).I have gained an understanding of the auditee in order to be comfortable that the risk assessments and risk ratings are appropriate, including:the engagement risk assessmentPIE status.I have reviewed and approved:key aspects of the audit approach, including identifying and responding to significant risksrebuttal of any presumed significant risksaudit responses to financial statement level risks (including laws and regulations, potential or known litigation, going concern and related parties) and fraud risksinvolvement of IS specialists or expertsthe ASP's assessment of overall and performance materiality for the financial statements as a whole and for particular items.EC should record significant risks and other key factors to support this approval.I have documented evidence of my involvement, including documentation of briefings, at the planning stage of the audit..Document details and date(s):Progressive Involvement Record – Execution and completionAONSW Involvement RecordASP File ReferenceComments[record actual involvement and relevant references where necessary]Execution and completion (prior to issuing the auditor’s report)I have been briefed by the ASP partner at appropriate times during the audit.I have briefed the Signing Officer (where relevant).Document the stage of audit, dates, names of people involved and matters discussed.I have documented evidence of my involvement, including briefings, at the interim and final stages of the audit, prior to the signing of the auditor’s report.Document details and date(s).I have reviewed significant risks, key judgements, assumptions, estimates and other major sources of estimation uncertainty that have a significant risk of resulting in material misstatement or adjustment to the financial statements.Document references and date(s) of review.I have made such enquiries and documented my review of such workpapers as I consider necessary to be satisfied that the quality control procedures applied to the audit are in accordance with the requirements of the contract, including:Document details of review performed by describing herein. Include date(s).meeting relevant auditing standards and Audit Office policiesthe use of ASP staff with appropriate competence, qualifications and experienceobtaining sufficient appropriate audit evidence to support the conclusions reached and the issue of the auditor’s report.I have obtained and reviewed the referenced set of financial statements and relevant schedules prepared by the ASP including any recommended changes. I have discussed my findings/queries with the ASP and the auditee has been informed of all suggested changes.The financial statements comply with the reporting framework in all material respects. Sufficient appropriate work has been performed by the ASP to ensure the financial statements are in compliance with the reporting framework.The level of work involved would depend on the quality of financial statements, effectiveness of ASP process and the number of suggestions.I have obtained support for any prior period errors and/or changes to accounting policies that are to be treated retrospectively and followed appropriate Audit Office policies and procedures.I have made enquiries of the ASP regarding any issues from the prior year that are relevant to the current year financial statements, including:matters raised in debriefing meetingsthe carry forward effect of uncorrected errorssignificant repeat unresolved findingsmodifications to the current year or in the prior year’s auditor’s reportremoval of a modification in the previous year’s auditor’s report.I have been advised and consulted for any extensions of time the auditee has requested. This includes timing of:submitting financial statements and other working papers as outlined in the AEPrequests with the regulatory bodies i.e. NSW Treasury or the Office of Local Government (OLG).Where an EQCR (either at the ASP or within the Audit Office) is appointed, I am satisfied that the review processes have been completed satisfactorily before the issue of the auditor’s report.If an EQCR was appointed, explain the basis of satisfaction and give date(s).I confirm:no matters have come to my attention indicating non-compliance with relevant ethical requirements by Audit Office or ASP staff. The ethical requirements include those pertaining to integrity, objectivity, professional competence and due care, confidentiality and professional behaviourall Audit Office staff completed an annual Conflict of Interest and Professional Independence Declarationthe ASP partner has made appropriate representation as to the independence of the ASP’s engagement team.all actual or perceived threats to independence were considered and appropriate action was taken to manage them.I confirm the ASP has discussed the appropriateness of the content of all written communications to the auditee with the EC, including the Engagement Closing Report and Management Letters.I confirm the ASP, where necessary, has advised the Audit Office of all instances of non-compliance with statutory obligations.I confirm the ASP has briefed the EC at appropriate times during the audit on any protected disclosures and fraud matters the ASP became aware of during the course of the audit.I have reviewed the “ASP’s Representation Letter”, and, prior to the signing of the auditor’s report, I have satisfied myself that the ASP’s work provides sufficient appropriate audit evidence to support the release of the auditor’s report.Tailor the section below to suit the circumstances of the auditee.HPCM Document numbers(depending on timing may be separate of combined):? Confirmed – GPFS? Confirmed – SPFS? Confirmed – Permissible Income? Confirmed – Pensioner Concession? Confirmed – Roads to RecoveryWhere the auditor’s report will be modified, the ASP has drafted the report and our policies and procedures have been completed prior to signing the auditor’s report.Engagement Closing Report has been issued to the persons signing the auditee’s financial statements and those charged with governance.HPCM document number:Guidance – Key documentsThis section provides guidance on key documents for contracted-out audits and the most appropriate place to file them.DocumentsFile1Annual Engagement PlanHPCM2Acknowledgement of TermsHPCM3Interim Management LetterHPCM4Engagement Closing ReportHPCM5Audit and assurance reports and associated financial statements/schedules/acquittalsHPCM6Final Management LetterHPCM7Position papers from auditee and ASP and our responsesAudit file8Correspondence with MinistersHPCM9Emails with external partiesHPCM and/or audit file depending on the nature and context of correspondence10Formal reports or briefing papers for Audit, Risk and Improvement CommitteesHPCM11Other signed correspondenceHPCM12Representation Letter(s)HPCM13Clearance memo for Signing Officer to sign (where relevant)HPCM14Record of our review of financial statements and communication of any issuesAudit file15ASP Representation LetterHPCM16Progressive Involvement RecordAudit file ................
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