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Column
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Input Required
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Outcome
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Materiality reassessment
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No input is required in this column. Lists the five pre-populated materiality assessment bases: (a) Revenue, (b) Net profit before tax, (c) Shareholders' equity, (d) Total assets, and (e) Total liabilities, followed by the calculated overall materiality range (overall materiality may be set between the minimum and maximum amounts), the overall materiality set during the planning stage and the performance materiality set during the planning stage.
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No impact on the engagement file. Identifies the line items of the materiality reassessment.
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Min and Max
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No input is required in these columns. Displays the minimum and maximum percentage parameters applicable to each materiality base.
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No impact on the engagement file. Determines the range within which overall materiality may be set once a materiality base is selected.
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Current year (e.g. 2023)
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Displays the current year value for each materiality base and the overall materiality and performance materiality amounts set during the planning stage. Select the applicable materiality base by clicking the tick box next to the relevant base in this column. Only one base should be selected.
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The overall materiality range and the overall final materiality are calculated based on the selected base and its minimum and maximum percentage parameters. The planning-stage amounts are presented for comparison during the reassessment.
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Conclusion regarding materiality reassessment
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Overall final materiality is therefore set as
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No input is required in this column. Displays the calculated overall final materiality based on the selected materiality base and the percentage parameters.
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Sets the final materiality amount for the engagement. The engagement team must confirm that the final materiality is appropriate.
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Reason(s)
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Enter the reason for the final materiality amount selected by the engagement team.
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No impact on the engagement file. Documents the engagement team's rationale for the final materiality assessment.
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Conclusion regarding misstatements
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Conclusion
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Where no misstatements have been recorded in the engagement file, a default statement ('No misstatements, neither corrected nor uncorrected, were found') is displayed. Where misstatements have been recorded, enter the values for each category of misstatement (corrected and uncorrected – factual, projected and judgemental) from the schedule of misstatements (02.43) and document the engagement team's overall conclusion.
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No impact on the engagement file. Records the engagement team's conclusion on the corrected and uncorrected misstatements identified during the audit.
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Evaluation of misstatements (SoCF)
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Line item
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No input is required in this column. Lists the statement of cash flows line items grouped under Cash flows from operating activities, Cash flows from investing activities and Cash flows from financing activities, each ending with the net cash total for the activity. The 'Adjustments for:' line item can be expanded by clicking the plus sign to display the individual adjustments.
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No impact on the engagement file. Identifies the line item to which the misstatements relate. Line items with no balances or misstatements display zero values.
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Balances – Unaudited and Audited
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No input is required in these columns. Displays the unaudited balance and the audited balance for each line item from the engagement file.
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No impact on the engagement file. Provides the balances against which the misstatements for the line item are evaluated.
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Misstatements – Corrected: Normal, Reclassifying and Total
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No input is required in these columns. Displays the corrected misstatements recorded in the engagement file for each line item, split between normal and reclassifying adjustments, and the total corrected misstatements.
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No impact on the engagement file. Summarises the corrected misstatements per line item.
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Misstatements – Uncorrected: Factual, Projected, Judgemental and Total
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No input is required in these columns. Displays the uncorrected misstatements recorded in the engagement file for each line item, classified as factual, projected or judgemental, and the total uncorrected misstatements.
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No impact on the engagement file. Summarises the uncorrected misstatements per line item for evaluation against the final materiality.
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Warning indicator
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No input is required in this column. A warning indicator is displayed next to a line item where the uncorrected misstatements require the engagement team's attention.
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No impact on the engagement file. Draws attention to line items that must be considered in the conclusion.
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Conclusion
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Enter the engagement team's conclusion on the misstatements identified for the line item.
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No impact on the engagement file. Documents the evaluation of the misstatements per line item.
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Annotation
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Click the plus icon to add an annotation to the line item.
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No impact on the engagement file. Records additional commentary on the line item.
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Qualitative disclosure
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Description of disclosure or presentation misstatements
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Enter a description of the disclosure or presentation misstatement identified. Click 'Add another line' to record a further misstatement.
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No impact on the engagement file. Records the qualitative misstatements identified during the audit.
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Note
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Enter the reference to the note in the financial statements to which the misstatement relates.
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No impact on the engagement file. Links the misstatement to the affected disclosure.
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Balances – Unaudited and Audited
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Enter the unaudited and audited balances of the disclosure to which the misstatement relates.
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No impact on the engagement file. Provides the balances against which the misstatement is evaluated.
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Misstatements – Uncorrected: Factual, Projected, Judgemental and Total
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Enter the uncorrected misstatement amount in the factual, projected or judgemental column. The total is calculated.
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No impact on the engagement file. Quantifies the uncorrected qualitative misstatements for evaluation against the final materiality.
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Warning indicator, Comment and Annotation
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A warning indicator is displayed where the misstatement requires the engagement team's attention. Enter any comment on the misstatement in the Comment column and click the plus icon to add an annotation.
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No impact on the engagement file. Documents the engagement team's consideration of the misstatement.
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Overall conclusion
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Question
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No input is required in this column. Displays the conclusion questions on the accumulation, evaluation and reporting of misstatements; question 10 has sub-questions (a) to (d). Guidance is available where a lightbulb icon is displayed next to a question.
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No impact on the engagement file. Sets out the matters the engagement team must conclude on before finalising the evaluation of misstatements.
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Yes / No
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Select Yes or No from the drop-down list for each question.
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A 'No' answer indicates a matter that the engagement team must address and document before concluding on the misstatements.
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Prepared by
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No manual input is required when 'Yes' is selected – the initials and date of the engagement team member are populated automatically. When 'No' is selected, click the sign-off button to populate the initials and date.
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No impact on the engagement file. Records who concluded on each question and when.
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Ref
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Select the reference to the supporting working paper from the drop-down list.
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No impact on the engagement file. Cross-references the conclusion to the supporting working paper.
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