There are two major changes to audit work that will apply to jobs for balances dates from 31 December 2022.
One is because of the quality management standards and one relates to the new ISA 315 (revised 2019) requirements. Both are fairly major, so we have made the decision to issue 2023 versions of our audit templates, rather than just tweak the existing templates. The pages affected are as follows:
- Independence Checklist - Instead of an independence checklist within the file, there is now a reference to the firm quality management system, which includes a 'New Assurance Client Tool' and an annual independence confirmation for each staff member within the 'Audit Quality Management Tool'.
- Audit Team Planning Meeting - There are some additional questions and referencing changes as required by ISA 315 (revised 2019) and the updated ISA 220.
- Internal Controls - There are some fairly major changes here in how the control system is to be documented and assessed to comply with ISA 315 (revised 2019).
- Entity and its Environment - Includes some extra requirements and referencing updates to comply with ISA 315 (revised 2019).
- Risk Analysis, Strategy and Plan - Includes changes as required by ISA 315 (revised 2019) as to how risks are to be assessed and analysed.
- Quality Control - Updated for the changes to ISA 220.
- Quality Control Reviewer Checklist - changed from referencing ISA 220 to PES 4 - the new standard that specifically addresses the Engagement Quality Reviewer.
- In addition, there are some additional partner sign-offs on other pages as required by the updated standards, and a few referencing updates.
We have already completed the updated Schools template for firms contracted to the Office of the Auditor General (NZ Schools (OAG) Audit (2023)) including a few other improvements suggested by users. You will be prompted to upgrade to the new template.
The rest of the 2023 templates will be completed and released in December 2022 and January 2023 so they are ready for December balance dates. We suggest you finish your current jobs in the existing templates and upgrade after rollover.