- Selecting Engagement Type
- Fundamental Principles of Professional Ethics and Auditor Independence
Selecting Engagement Type
Due to the standard nature of SMSFs we have provided a template workpaper that documents preliminary engagement activities undertaken. The auditor must select the Engagement Type and also ensure the conclusion for each procedure is accurate.
- Ensure the type of engagement has been selected in the Customiser to correctly reflect the preliminary engagement activities undertaken. Three options are available including New Client and Established Fund, New Client and New Fund and Existing Client and Fund. The Customiser defaults to a recurring engagement;
- The default conclusion can be changed for procedures to correctly reflect the preliminary engagement activities undertaken. Template conclusions are available to be selected and added to, and a blank conclusion is provided for the auditor to supply a different conclusion;
Fundamental Principles of Professional Ethics and Auditor Independence
Due to the standard nature of SMSFs, there are a number of common threats to the fundamental principles of professional ethics and independence which you may face, along with a standard list of common safeguards which you may implement to mitigate these threats.
Accordingly, MyWorkpaper's SMSF 5.0 product provides you with a list of common threats and safeguards to the fundamental principles of professional ethics and independence and allows you to quickly provide these as responses through our Response Library.
To complete both tables and use our Response Library, simply complete the following procedures:
- If a threat to any of the fundamental principles of professional ethics and independence categories exists, select Yes from the dropdown menu provided;
- Once selected, click on the Select Threat dropdown menu and select one of the standard threats from the Responses Library. Alternatively click Blank Threat to create your own;
Note: If required, you can edit the threat inserted by clicking on the text area and typing in your required edits.
- Once you have finalised the threat, click on the Select Safeguard dropdown menu and either select on of the standard safeguards from the Response Library or add in a blank threat;
Complete this for all identified threats and provide an overall conclusion on the workpaper.
Hint: You further save time on every audit by creating your own firm based template and providing standard responses for independence for use on all of your audits. To learn more about the Firm Templates functionality in MyWorkpapers click here or get in contact with one of our friendly team members.