demonstration of the new caseware system bob dohrer, mcgladrey & pullen, llp (usa) mark pullen,...

Demonstration of the new CaseWare systemBob Dohrer, McGladrey & Pullen, LLP (USA)Mark Pullen, RSM International (UK)

RSM International Conference, Singapore 2007


Why CaseWare?Why CaseWare?

• Quality & Efficiency– Automates the methodology– Improves consistency between years and across engagements– Enhances the focus on risk

• People– Attracting the best people– Enhancing skills and understanding of client/process

• Clients– Demonstrates commitment to global quality– Middle market internationally active clients value global consistency



• Small and large company versions– Separate templates for complex and less complex companies– Elements of scaling will be used within the templates– Subject to risk based criteria

• Risk based planning tool– Enhances the effectiveness and documentation of planning– Automation of audit response– Improves relevance of audit programmes– Easier for partners to review and sign-off on planning

• Flexible & tailored audit programmes– Ability to tailor audit programmes



• Full audit trail of changes– Automatically records changes to documents– Identifies personnel through login details

• File review and lock-down– File review and track changes functionality– Files can be locked down– Restricted access and security features– Encryption of data

• Synchronisation and networking– Ability to synchronise in real-time– Via local hub, network or internet



• Integrates to TB, accounts preparation and tax software– TB integrates to lead schedules and analytical analysis– TB integrates to accounts preparation templates– Local distributors develop statutory account and tax packages


AgendaAgenda

• Small and large company versions• Starting point• Audit methodology and automation• Training• Licensing• Technical specifications• Maintenance• Timing• Demonstration


Complex and less complex company versionsComplex and less complex company versions

• Recognition of the attributes of smaller companies– Less complex transactions and business processes– Limited or no reliance on controls– More reliance on tests of detail

• Separate versions for Complex and Less Complex clients• Complex company version will accommodate listed,

interim reviews, groups and consolidations• Both versions are risk based


Starting pointStarting point

• CaseWare Steering Group• Evaluation of US and Canadian systems

– Functionality– User friendly– Audit methodology– Development risks - reprogramming

• Adapt Canadian system for international use• Ensure US functionality is included• Common platform is achievable• CaseWare Development Team


Audit methodology and automationAudit methodology and automation

• RSM International audit methodology• No methodology training required• Certain steps within the audit methodology become

automated (If X, then Y)• Results in better application of the audit methodology and

consistency


TrainingTraining

• Audit 1 & 2 courses will be updated to include specific training on the use of CaseWare

• Existing partners and staff will receive a two or three day CaseWare user course

• RSM International will support these course materials and will run train-the-trainer courses and web-casts

• Help available to answer your questions


LicensingLicensing

• Global licenceOR• National pricing and contracts• Leverage volume discounts• Year one fee – between U$300 and U$500 per user• Ongoing license (50% of year one)


Technical specificationsTechnical specifications

• MS Windows XP Professional• MS Windows 2000 Professional• Pentium III processor• 256MB of RAM• Program files are 150MB• Engagement files are 40MB or 10MB when compressed• MS Internet Explorer 5.5• Adobe Acrobat Reader 5.0• MS Office 2000 Service Pack 3


MaintenanceMaintenance

• Global CaseWare Quality Team, with National Champions• Updates prompted by regulatory change, CaseWare

Quality team initiatives, user feedback or external advice• Updates limited to one per year, unless critical• Updates provided globally, with guidance on local

implementation• Updates will include staff training materials and guidance


TimingTiming

• Now to Mar – Internationalisation of template• Apr to May – Testing• May to Jul – Release of version 2008.1• Jul to Aug – Support for national amendments• Aug to Nov – Partner and staff training• Nov to Dec – Planning engagements• Jan onwards – In use


Small file structureSmall file structure

• Financial Statement• 200 Client Acceptance & Continuance• 300 Pre-planning

– Entity Level Risk Assessment (Fraud, Account)

– Cycle Systems and Controls / Risk Assessment

• 311 Revenue Cycle (followed by Inventory etc.)

– 311S.1 Control Documentation– 311.200 Control Documentation

Questionnaire– 311.300 Segregation of Duties

Assessment– 311.400 Risk Control Matrix– 311.500 Test of Controls

• 380 Summary of Risk of Material Misstatements

• 400 Planning– Team Planning– Materiality Determination– Material / Significant Risk Assessment

• 500 & 600 Conduct of Audit• 700 Completion and Reporting• Audit Procedures• Fixed assets• Accounts Receivables• Cash• Etc…


Risk Assessment flowchartRisk Assessment flowchart

Calculatemateriality

MAP 380 RAHigh or Low Risk

assessment

Business, fraud andAccounting risk

assessment

Assess if line itemsare material or

significant

MAP 420 RMApopulated from TBTrail balance

Financial statementscreated

Required Analytics (must do)Required Procedures (must do)

Create Analytics (optional)Create Detailed Procedures (optional)

Review tables forHigh or Low risk

Audit programmei.e. AccountsReceivable


DemonstrationDemonstration

Overall structure

•Simple file structure•Follows flow of work•Includes non-mandatoryforms

300.MO

311.300340.MO

420.MPQ

520.10

710.MPO740.MO760.MP

Accounts receivable



Understanding entity

•Tabs for different areas•Guidance toggle

•Considers each account•A number of areas•covered in detail



Understanding entity

•MS Word template•inserted



Revenue cycle

•Segregation of duties•Common areas•highlighted



Preliminary AR

•Pre-populated•Describe risks•RMM balances



Planning - RMA

•Considers each account•Determines audit•approach



Conduct of the audit

•Pre-formatted



Completion

•Pre-populated•Classification



Completion

•Key issues•Comments•Response



Completion checklist

•Many areas covered•Manager sign-off•Partner sign-off



Accounts receivable

•Pre-populated lead•schedule•Adjustments•Reclassifications



Audit programme

•Required AR



Audit programme

•Additional AR



Audit programme

•Required tests of detail



Audit programme

•Additional tests of detail•Toggle step



Audit programme

•Comments



Audit programme

•Pre-populated AR



Overall structure


SummarySummary

• Quality• Efficiency• Consistency• Cutting edge technology• Attracting people and clients• Moving forward together


Thank youThank you

• Thank you for your attention and participation• Questions?

demonstration of the new caseware system bob dohrer, mcgladrey & pullen, llp (usa) mark pullen,...

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