With the most recent changes to the Mercia methodology, there are a number of key points that you will need to be aware of going into preparing your files on MyWorkpapers.
With the focus on going concern and estimates there are now new folders and programmes as below:
- QAE - Accounting estimates
- R - Going Concern
- S - Subsequent Events
PF1-8 and B30X
One of the major inclusions in the update is the B30X (X being A, B, C etc), described by Mercia as follows:
New planning checklist designed to ensure compliance with the requirements of ISA (UK) 540 (Revised December 2018). A copy of this should be completed for each identified key accounting estimate.
In the PF1-8 (Accounting Estimates) workpaper, an “Expected key accounting estimates” table has been added where the B30X workpaper is required for each Accounting Estimate.
In this case, you will need multiple versions of the B30X workpaper and the best way to include this will be to use the Copy Workpaper functionality in the file.
You will then need to rename each one accordingly and add the relevant references to the table in PF1-8 workpaper.
Accounting estimates Audit Programmes (QAE)
The B30X workpaper has a section where you are required to answer whether the key accounting estimate pose a significant risk of material misstatement. If your answer to this question is “Yes”, a QAE – Accounting Estimates Audit Programme is required which will again need to be copied in using the Copy Workpaper functionality and appropriately renamed. If the accounting estimates do not pose a significant risk, the QAE workpaper is not required.
The QAE audit programmes will then need to be added to Audit Plan (B33) manually using the Edit Mode button:
As the QAE sections will not have lead schedules, you will also need to add an open row into the sections:
This will then give you the necessary space to add any data regarding risks and assessment of the Accounting Estimate.
S and R programmes
As with the QAE programme above, in a lot of cases there will not be any lead schedules in the S and R sections. To get these to work on the Audit Plan you will need to add an open row against these programmes via Edit Mode which will give you the necessary space to add any data regarding risks and assessment of these programmes.
This is also the case with the existing N1 Trial Balance programme.
As at time of writing, the excel disclosure checklists have not yet been updated with the changes with this release. The word documents are however available.