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Compilation Engagement

Compilation Engagement. Agenda. Recap of Review Engagement and FAQ Practical look at the Compilation Engagement. FAQs on Review . Can I still prepare the financial statements? Is that all? (I don’t feel comfortable with so little evidence) Which standard do we use?

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Compilation Engagement

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  1. Compilation Engagement Business Integrity, Insight and Beyond

  2. Agenda • Recap of Review Engagement and FAQ • Practical look at the Compilation Engagement

  3. FAQs on Review • Can I still prepare the financial statements? • Is that all? • (I don’t feel comfortable with so little evidence) • Which standard do we use? • What is a review going to cost? • Who can do the review? • Group statements if subsidiaries were not audited?

  4. FAQ on Companies Act • Calculation of PI Score • Section 45 Assistance • Section 90 Auditor appointment • Same firm? • Secretarial work? • If previously appointed? • Changing the MOI for voluntary audits • Deadline for preparing AFS Business Integrity, Insight and Beyond

  5. Compilation Engagement • What is a compilation? • When? • Who?

  6. MD • 60% Case study • Internal Bookkeeper up to Trial Balance • Service revenue • R7,8m (2010: R7,3m) • Automatically invoiced 7 days before service delivery

  7. Private companies - Assurance PI Score 350 100 0

  8. Private companies – Who will do it ? PI Score 350 100 0

  9. The Review Process

  10. Receivables processing Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable? Section 29(6)

  11. Section 29(6) • (6) Subject to section 214 (2), a person is guilty of an offence if the person is a party to the preparation, approval, dissemination or publication of – • any financial statements, including any annual financial statements contemplated in section 30, knowing that those statements – • Fail in material way to comply with the requirements of subsection (1); or • Are materially false or misleading, as contemplated in subsection (2); or

  12. Receivables processing Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

  13. Why a compilation template?

  14. Compilation objectives • Comply with compilation standard • ISRS 4410 • Risk management • Companies Act • Integration • Between compiler and auditor / reviewer • Process • Cover everything • It must work the way you work

  15. Receivables processing Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

  16. Receivables processing Mapping Are invoices captured? Are debtors recoverable? Compilation Are related parties identified? Should any invoices be accrued / deferred? Is mapping correct? Annual Financial Statements

  17. Receivables processing Probe Compilations Probe MMX Are invoices captured? Should any invoices be accrued / deferred? Is mapping correct? Are related parties identified? Are debtors recoverable?

  18. Make it work

  19. Make it work

  20. Next steps • Group audits • ISA 600 • IFRS for SMEs • Audit & Compilation • Updates on What’s happening • Facebook & Twitter

  21. Thank you ProBeta Accountancy Development (Pty) Ltd. info@probeta.co.za www.probeta.co.za ProBeta.Accountancy #ProBetaAcc Probe MMX #Probe User +27 (11) 886-1395 +27 (21) 910-2766

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