We have today added a number of updates to the schools template (NZ Schools (OAG) Audit) as follows:
- 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.
- 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.
- Also in the W section we have added disclosure checklists for PBE IPSAS RDR standards.
- 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."
- 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.