Practice Aid 2 FILE COMPLETION CHECKLIST ALLIANCE FOR EXCELLENCE IN INVESTIGATIVE AND FORENSIC ACCOUNTING

Transcription

1 Practice Aid 2 FILE COMPLETION CHECKLIST ALLIANCE FOR EXCELLENCE IN INVESTIGATIVE AND FORENSIC ACCOUNTING

2 BOARD OF THE IFA ALLIANCE Edward Baskerville, CA IFA, Baskerville Consulting Inc. (Chair) Peter Armstrong, CA IFA, KPMG LLP Paul Bradley, CA IFA, PricewaterhouseCoopers LLP Peter Dent, CA IFA, Deloitte & Touche LLP David Elzinga, CA IFA, Grant Thornton LLP Douglas Kalesnikoff, CA IFA, University of Saskatchewan Arthur Lavigne, CA IFA, LBC International Investigative Accounting Inc. Gary Moulton, CA IFA, Deloitte & Touche LLP Victor Neufeld, CA IFA, Prairie Forensic & Investigative Accounting Gary Timm, CA IFA, Deloitte & Touche LLP IFA STANDARDS COMMITTEE Douglas Kalesnikoff, CA IFA, University of Saskatchewan (Chair) Kay Holgate, CA IFA, Grant Thornton LLP Arthur Lavigne, CA IFA, LBC International Investigative Accounting Inc. Linda Robinson, CA IFA, University of Waterloo Derek Rostant, CA IFA, KPMG LLP Legal Reviewer: Mary Jane Stitt, LLB, Blake Cassels & Graydon LLP Copyright 2010 The Canadian Institute of Chartered Accountants Alliance for Excellence in Investigative and Forensic Accounting 277 Wellington Street West Toronto, Ontario M5V 3H2 Printed in Canada Disponible en français

3 IFA Practice Aids (IFA PA) Notice to Reader Introduction The IFA Practice Aids supersede the Practice Aid issued by the Investigative and Forensic Accounting Interest Group. The IFA Practice Aids will be issued from time to time to provide direction regarding matters not specifically addressed in the IFA Standard Practices and/or assistance on the use of the Standard Practices for Investigative and Forensic Accounting Engagements November 2006 ( IFA Standard Practices ) as required. The Practice Aids are developed and revised by the IFA Standards Committee and are published upon approval of the IFA Board. Authority The IFA Board publishes IFA Practice Aids in response to member interest or changing circumstances. These may include: interpretive publications expressing the views and opinions of the Board but do not have the same authority as the IFA Standard Practices matters requiring the IFA s consideration in situations not specifically addressed in the IFA Standard Practices suggested practices to provide helpful guidance to practitioners in the application of the IFA Standard Practices. IFA Practice Aids may be withdrawn for various reasons such as: changes in legislation or case law the material is no longer useful because the IFA Standard Practices have been amended the material is out of date. Effective Dates Unless otherwise indicated, IFA Practice Aids should be considered effective the first day of the month after issue. IFA PA-2 File Completion Checklist 1/8

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5 IFA PA-2 File Completion Checklist Introduction The File Completion Checklist is intended to assist those conducting IFA engagements as described in the Standard Practices for Investigative and Forensic Accounting Engagements, November 2006 ( IFA Standard Practices ) in ensuring consideration of the IFA Standard Practices. Completion of this document does not, in itself, provide evidence of compliance with the IFA Standard Practices. References are made in the checklist to applicable sections of the IFA Standard Practices. As the nature and specific details of IFA engagements may differ as well as the steps taken in completing such engagements, portions of this checklist may not be relevant or applicable to a particular matter. Those conducting IFA engagements are encouraged to utilize this checklist, amended as may be necessary, to reflect the specifics of the engagement. The checklist is prepared in three parts: Part A Relevant to all engagements Part B Engagement specific IFA Standard Practices Part C IFA Standard Practices applicable to written reports with the expectation of expert testimony. IFA PA-2 File Completion Checklist 3/8

6 Part A: General Relevant to all Engagements This section should be completed by the individual primarily responsible for the engagement. 1. Engagement Acceptance (See 200 Engagement Acceptance) Engagement documentation a. There is documentation of independence considerations and their resolution. Where relevant, reference is provided to the conflict check and/or independence concerns. b. Terms of the engagement have been documented. If an engagement letter was not obtained, the reasons for not obtaining an engagement letter have been documented and copies of contracts and/or documentation of the key terms of the engagement have been provided. Refer to Practice Aid 1 (PA-1) Engagement Letters. c. Staffing considerations as identified in (expertise, competencies, resources and time to perform the engagement) for key components are documented (if included in the engagement letter this could be by reference). d. Consideration was given to the ability to complete the engagement, as identified in , including constraints in accordance with professional standards and regulatory and legal requirements. REFERENCE SIGNOFF (date and initials) 2. Planning and Supervision (See 300 Planning and Scope of Work) REFERENCE SIGNOFF (date and initials) a. Planning considerations including objectives, circumstances, context, scope of work and any limitations thereto, staff requirements and the nature and timing of reporting requirements have been documented. b. The nature, scope, direction and procedures of the engagement, and any significant changes thereto have been documented. c. All members of the engagement team have been made aware of the IFA Standard Practices applicable to their roles. (See ) d. A partner, or equivalent, will approve planning, prior to significant execution. Partner or equivalent Signature e. There was appropriate supervision and review of the work of assistants, including agents or subcontractors. Partner or equivalent Signature 4/8 IFA PA-2 File Completion Checklist

7 3. Communications (See 500 File Documentation) a. All correspondence via letters and fax is either in the file or there is reference to its electronic link. b. All substantive s are in the file or there is an electronic reference. ( s relating to administrative matters are not considered substantive.) c. Notes of interviews, meetings and significant discussions have been made and are in the working paper file. REFERENCE SIGNOFF (date and initials) 4. Information Collection & Analysis (See 400 Information Collection & Analysis) a. There is a record of all documents and other material requested and those received from the parties including origin, possession and disposition. For electronic documents and hardware please refer to footnote 7 to Where documentation requested is not received, the reasons for the request, efforts made to obtain it and the reasons why it was not obtained is documented. b. Where there have been any restrictions on the nature, scope and source of relevant information and documentation deemed necessary for the engagement, the reasons for such restriction and the impact on the engagement are documented. c. All relevant information has been identified, analyzed, assessed and compared; substance over form has been considered; and appropriate testing of hypotheses relative to the issues undertaken. d. The collection and analysis of information reflects an investigative mindset. See and the examples in e. There are copies of and/or references to all documents used and relied on, including research sources (See (a)). Signoff by primary file preparer Signature REFERENCE SIGNOFF (date and initials) IFA PA-2 File Completion Checklist 5/8

8 Part B: Engagement Specific To be Completed for all Engagements This section should be completed by the individual primarily responsible for the engagement. For limited scope engagements some questions might not be applicable. Information Collection & Analysis (See 400 Information Collection & Analysis) 1. Research and Data (See also Part A re: sources) a. Reliance on the work of others (See ) is documented, including: The nature and level of intended reliance The understanding between the IFA practitioner and others, including experts, as to roles and responsibilities The evaluation by the accountant of the expertise, independence, objectivity and report or other information relied on. REFERENCE SIGNOFF (date and initials) 2. Reasonable Assumptions (See ) a. There is documentation of significant estimates and assumptions including the reason(s) why an assumption (estimate) is required; alternatives considered and an evaluation of the reasonableness and consistency of assumptions used. A sensitivity analysis may be relevant. 3. Conflicting Information & Alternative Theories (See ) a. All information received has been reviewed and the IFA practitioner has considered relevance, reliability, reasonableness and completeness and consistency with other known engagement information. (See also re the possibility of information being biased, false, unreliable and/or incomplete.) b. Where alternative theories or engagement methodologies are identified in the course of the engagement they are documented including an evaluation of their impact on the conduct of the engagement and the reason(s) for selecting from those alternatives. 4. File Documentation (See 500 File Documentation and Part A) a. Highlights Memo For all significant decisions in which professional judgment was exercised, provide a description of the issue, the considerations and the logic in reaching the conclusion or a reference to the working paper where the matter is discussed. (See (i)) In my opinion, the working papers document the work and/or matters that were relevant in reaching findings, opinions and/ or conclusions in the report. Signature 6/8 IFA PA-2 File Completion Checklist

9 Information Collection & Analysis (See 400 Information Collection & Analysis) 5. Reporting (See 600 Reporting) For each report issued to the client there shall be a signoff as required in Part c. a. For oral reports, there is documentation of their purpose, scope and general content. b. A copy of all interim, draft and final reports issued to the client or the client s representative have been retained on file. Where an interim or draft report is not retained on file, the reasons for not retaining it are documented. (Internal iterations of a report prepared as an engagement evolves but not issued to the client or client s representative are not considered drafts for the purpose of this checklist.) c. In my opinion, the report presents the findings and conclusions in an objective and unbiased manner. Signature d. The report includes the following (See ): REFERENCE SIGNOFF (date and initials) i. The names and professional designations of the IFA practitioners and/or the firm responsible for the report. ii. Who retained the IFA practitioner and to whom the report is directed. iii. The date of the report, which should be the last date when conclusions were reached concerning the report. iv. The effective date of the findings and conclusions, if different from the date of the report. v. The objectives and circumstances of the IFA engagement and the purpose for which the report is being prepared. vi. vii. Sufficient information to enable the user to relate the findings and conclusions to the supporting analyses, information and documents, including sources of information relied on; reliance on the work of others; techniques and procedures, including supporting rationale for their selection; underlying assumptions with reasons for reliance thereon; and definitions and interpretations. Any restrictions on the use of the report. viii. Any scope or other limitations affecting the findings and conclusions. e. The following special reporting circumstances have been addressed/or are not applicable: Independence issues Multiple approaches and ranges of values Scope limitations. IFA PA-2 File Completion Checklist 7/8

10 Part C: For Engagements that are Completed with the Issuance of a Final Report FILE/REPORT REVIEW I have reviewed the working paper file and report and in my opinion the file supports the findings, opinions and conclusions expressed in the report, and both the conduct of the engagement and the report are in compliance with the IFA Standard Practices. Signature Date FILE REVIEW 2 nd PARTNER, OR EQUIVALENT (OPTIONAL) I have reviewed the report and in my opinion the report supports the findings, opinions and conclusions expressed therein and meets the Standard Practices for Investigative and Forensic Accounting Engagements. CLERICAL/REFERENCE REVIEW Signature Date 8/8 IFA PA-2 File Completion Checklist

11 Practice Aid 2: Engagement Checklist Notes:

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