Schools template updates (January 2020)

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We have today added a number of updates to the schools template (NZ Schools (OAG) Audit) as follows:

  1. We have changed the heading on the staffing page to "Audit Team Planning Meeting" and specified that the date of the meeting and the attendees be included.
  2. We have updated the Cash Flow questions in the W section to make this testing mandatory and added a prompt to attach workings and tests.
  3. Also in the W section we have added disclosure checklists for PBE IPSAS RDR standards.
  4. On the risk analysis page we have added a specific prompt as follows: "Fraud due to management override is a significant risk factor for schools. Ensure all risks identified related to this are flagged and analysed as significant risks."
  5. In journal testing pages J1 we have added the requirement that journals leading up to y/e be assessed separately in terms of expectations and on J2 a specific list of journals which should be included in the sample as follows:

From manual journals ensure that the sample includes the following:
1) Large round number entries;
2) Journals to bank account ledger codes;
2) Re-allocation, reclassification journals between unrelated GL codes e.g. Dr loss on sale CR locally raised funds;
3) Journals that will manipulate and increase or decrease to locally raised funds;
4) Journals that impact upon accounting estimates but are not supported by source documents or valid calculation schedules e.g. depreciation, amortisation, doubtful debts provision, leave entitlements;
5) Journals that are not rational in light of year-end cut-off, e.g. income in advance and operating grant for current year;
6) Journals changing non-current to current and vice versa, to manipulate working capital;
7) Journals to modify profit/loss;
8) Journals entered on a day the school school and admin staff should be on leave e.g. Christmas or New Years Day;
9) Journals by people we have not been advised have approved access;
10) If the meta data is available - journals at illogical hours 2am;
11) Any out of balance journal entry.

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