Product Update: Workpapers November 2021Olwyn Connolly Posted
Inflo Workpapers product release: 2021-11-19 & 2021-12-17
November & December 2021 Inflo product updates release information, including Inflo Workpapers group audits, content management functions and full revised 315 adoption.
Full Adoption of the revised risk assessment audit standard – ISA 315 (Revised 2019) & US SAS 145 (AU-C sec. 315)
With our latest Inflo Workpapers release, we’ve added the functionality required for full adoption of the ISA 315 (Revised 2019) audit standard (US SAS 145 AU-C Sec.315), making us one of the first methodology vendors to early adopt revised standards.
Some key features and benefits of this latest release include:
•Implementation of the concepts of spectrum of inherent risk and the stand-back reconsideration, which allow auditors, within Inflo Workpapers, to assess risks more qualitatively across each area of the financial statements, before standing back and classifying the risks at the upper end of the spectrum as being the significant risks where the greatest focus will be placed during the audit.
• These concepts are applied within the Inflo risk assessment process via using a visual spectrum of risks graph where financial statement and assertion level risks are plotted; the graph is available for assessing risks at the financial statement area level or at the engagement level to assist the auditor in determining more broadly how they relate to each other and to the knowledge of the entity.
• Inherent risk factors are introduced at the right pinpoints within the risk assessment process to ensure they are considered effectively and linked throughout.
• When deciding to implement the Inflo Digital Audit Methodology, as an adopting firm you will only require one series of training and guidance for your audit teams since Inflo has already adopted this revised audit standard.
Inflo Workpapers: Group Audits
One of the most significant challenges on group engagements is collating the required information from a broader range of individuals on a timely basis.
Inflo implements a more collaborative approach to gathering prepared-by-client information across teams involved in a
The approach offers full transparency between client contacts and auditors, embedding robust project management practices to avoid inefficiencies and miscommunication.
Recommendations for scoping and component classification are provided by InfloHi, meaning auditors can effectively and visually make scoping decisions. This ensures appropriate coverage levels are achieved over group risks, with built-in warnings to support compliance.
Group engagement teams can share group-level risk assessment decisions to directly support the risk assessment conducted at the component level. Component auditors are notified of group-level risks for them to consider.
Component Materiality Allocation
Leveraging the outputs of Inflo’s Group Scoping and Materiality screens, the Component Materiality Allocation screen includes InfloHi functionality to analyze the trial balance data of in-scope components to propose an optimum allocation of group materiality.
Auditors then apply judgement and are guided by quality checks and balances to finalize decisions.
Component auditors are warned if their individual materiality settings are outside the allocated levels determined by the group engagement teams.
Several workprograms within the Digital Audit methodology are replaced by more comprehensive group engagement team or component team workprograms when performing such engagements.
This approach ensures that group procedures are only considered when
relevant, and that more sophisticated audit work is performed on group engagements.
Workprograms follow a logical structure and include embedded links to the appropriate advanced user interfaces, at the right time in the group audit process. They also have safeguards in place to ensure the appropriate extent of documentation is provided where necessary to satisfy audit standard requirements.
When relying on the work of component auditors, the group engagement team can quickly access and review their working papers via the link provided in the relevant workprogram.
Group-wide Documentation Sharing
Often, it is most efficient for the group engagement team to perform audit procedures on behalf of the entire group. This may include work such as understanding the entity and internal control, substantively testing taxation calculations, or performing subsequent event procedures.
Inflo allows for group engagement teams to share their group-wide work by copying the relevant information to the component auditors’ engagements, eliminating wasted effort and duplicated work or performing low-value administrative activities.
Sharing of issues
Often, findings identified by the group engagement team can potentially affect pervasively the entire group. This may include any control deficiencies identified in areas such as understanding the entity and internal control.
Inflo allows for group engagement teams to share these findings with the appropriate component auditors, by copying the relevant information to their engagements directly, eliminating wasted effort and duplicated work or performing low-value administrative activities.
Inflo Workpapers: Content Management
Template Pack Options
- Duplicate an Inflo Template Pack and modify or create your own
- Create, delete, modify workprograms
- Include, exclude Advanced Screens and Risk Sections in your firm Template Pack
Workprogram Options, Procedures and Responses
- Add, delete, modify procedures and responses if needed
- Include firm specific guidance
Select Template Pack on Engagement
Users will be able to select firm customized template packs on the engagement Workpapers Configuration for consistency across the firm.
Firm requirements are applied to each client engagement.
Create a firm standard template library, such as MS Excel and Word documents, to standardize procedure responses.
Find out more
Find out more about Inflo Workpapers here.