Financial Audit Update Thursday 3 March 2011 and Thursday 10 March 2011_part7 pptx

Other operational impacts • Key systems and financial records – Business continuity – Changes to control environment – Implementation of temporary manual processes – Impact on CFO statement on controls – Potential loss of records – Impact on your clients/customers This is trial version www.adultpdf.com Other operational impacts • Changes in operational aspects – Changes to key programs and priorities – Availability of funds for approved projects – Availability of key staff – Are existing policies adequate? – Will these impact on financial process and financial statement preparation? – Will these require further disclosure in the financial statements? This is trial version www.adultpdf.com Other possible areas impacted • Inventories • Investment properties • Agricultural assets • Investments in controlled entities • Commitments • Contingencies This is trial version www.adultpdf.com Financial statements and audit • Timing of audit visits may be impacted – Impact on audit clients – Impact on QAO and contract auditors • Likely to be revisions to audit strategies developed prior to the natural disasters • Impact on ability to prepare financial statements and have them audited within statutory timeframes This is trial version www.adultpdf.com Potential impact on audit opinions • Modifications may possibly arise from: – Inability to form an opinion on asset values reported in financial statements – Collection of charitable revenue (AGS 1054) – Loss of supporting documentation • Our aim will be to ensure: – There is an appropriate understanding of the basis for any modified opinions – Consistency of opinions issued This is trial version www.adultpdf.com Communication of issues and impacts • Need for regular and timely communication between QAO and our clients • QAO to liaise with central agencies • Look to provide consistent information internally and externally to QAO • Other information to be made available through – Auditor-General’s Reports to Parliament – Inform This is trial version www.adultpdf.com Accounting and Auditing Standards Update Patrick Flemming Manager – Audit Policy and Quality This is trial version www.adultpdf.com Overview • Special Purpose Financial Statements • Leases – Current year changes – Future developments • Financial Instruments • Reduced Disclosure Requirements • Revenue • Other Developments This is trial version www.adultpdf.com Special Purpose Financial Statements • Amendments to auditing standard ASA 800 • Changes to QAO engagement letters • Management required to: – Identify intended users – Identify standards & interpretations applied – Identify who approves significant accounting policies and where documented • Mandatory emphasis of matter on basis of accounting This is trial version www.adultpdf.com Leases • Changes to AASB 117 for 2010-11: – Default classification of land element in land & building lease is no longer an operating lease – Must reassess in 2011 – Retrospective application This is trial version www.adultpdf.com . version www.adultpdf.com Financial statements and audit • Timing of audit visits may be impacted – Impact on audit clients – Impact on QAO and contract auditors • Likely to be revisions to audit strategies. through – Auditor-General’s Reports to Parliament – Inform This is trial version www.adultpdf.com Accounting and Auditing Standards Update Patrick Flemming Manager – Audit Policy and Quality This. Impact on ability to prepare financial statements and have them audited within statutory timeframes This is trial version www.adultpdf.com Potential impact on audit opinions • Modifications