startCCH Audit Automation: Overview
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CCH Audit Automation: Overview

CCH Audit Automation
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Overview

    System overview

    The CCH Audit Automation programs allow any number of clients’ audits to be processed, with data being carried forward from year to year so that it is only necessary to enter changes as and when they occur. CCH Audit Automation guides the user through planning the audit - allowing the entry of the planning memorandum, review of the points forward memorandum, entry of staff details and budgets, and risk analysis. Once a client has been created, the task of entering the information into the planning section will only take a few minutes each year, allowing the planner to spend more time considering possible problem areas by considering the analytical review, trend analysis and comparisons of projections against actual.After completion of the planning section, the system will offer calculated sample sizes and allow the user to override them if desired.

    The production of the audit programme is completely automatic, based on the information entered at the planning stage and on the client’s trial balance - which can be drawn from our accounts production system, CCH Accounts Production, imported from a third party accounts system, or entered manually. This automated audit programme can then be customised further to reflect the particular needs of the client.

    The system will produce a full set of audit working papers, including section dividers, lead schedules, detailed schedules and checklists, based on the areas which are relevant to the client in question. Audit programmes and checklists can be completed on screen, working papers generated either using the internal word processor or Microsoft® Word or Excel, and audit notes and journals can be created where necessary. No special stationery is required - all programmes and working papers are printed on plain paper using the full formatting capabilities of Windows.

    In addition to the audit pack, the system maintains a database of permanent file information for each client, has an integrated word processor and allows the production of standard documents and letters, or documents and letters specific to the individual client.

    Computerising your existing audit programmes

    One of the most exciting features of CCH Audit Automation is the ability to store any number of master audit packs. When a client is created the system is told which master audit pack to use, but this can be changed at any time.

    A number of third party audit packs have been computerised with CCH Audit Automation and are available for purchase. But, if you have already designed your own audit programme and working papers, or if you use a commercially provided system, you may use CCH Audit Automation as a shell to computerise your own audit approach. This is a simple task using the integrated pack editing facilities. Import facilities are also provided to allow existing text files to be used.

    Once created, any, or all, of your clients can be linked to the new master audit pack and their audit packs will be produced based on your own methodologies.
    It is also a simple matter to make changes. Once a change has been made to the underlying master audit pack, any client then linked to the revised master will automatically be updated for future audits. CCH Audit Automation has been designed to ensure that information can be both entered and retrieved quickly in a format which is easy to understand and which provides maximum benefit to the organisation.

    This manual

    Although this manual could be read from cover to cover without reference to a computer screen, it is unlikely that this approach will enable you to get the best out of your system. We recommend that you run examples on your computer, and then you read the manual in conjunction with practical experiments. Experimenting with each of the facilities as covered in the manual will consolidate the ideas presented and enable you to remember them more easily.

    Structure of data

    Each client is identified by a unique work area code which is alpha-numeric and may be up to 50 characters long. Before creating your clients on the system, it is important to decide on the best form of coding for your organisation. The work area code is used purely to identify the client and does not have to be structured to contain any other information, as all data relating to the client is stored within the client’s records. If you are running an accounts preparation system, you may be able to automate the integration of the TB with CCH Audit Automation. This is more easily achieved if you use the same client identification codes in both programs.

    If you decide to structure your work area code in such a way that it represents the key to an alphabetical sort of the data, you will find it easier to search for clients when they are not sure of the code. See click here regarding the use of the Code list window. However, if your organisation already has a coding structure by which it identifies its clients, this would no doubt be the most sensible code to adopt.

    Important information

    Throughout the users manual important information and tips are given about each area of the program and we strongly recommend that all users read through the manual carefully.

    Screen display

    At all times when a client is loaded, the client's name is displayed at the top of the screen. The system keeps track of the current version of each client and will warn you if you select backup data to operate on.

    Program development

    We are always pleased to receive suggestions from users about changes they would like to see made to the programs, and if these are requested by a number of users, or felt by ourselves to be an improvement, they will be incorporated in future revisions of the programs. The User Voice area of our Support Portal is a great place to make suggestions for improvements, these suggestions can then be viewed and voted on by the user base.

    Related documents

    Inherent Risk Questions
    This document outlines the process for assessing inherent risk in clients through a systematic approach of questions. The system can store up to 99 risk areas, each containing 99 questions, which are assigned point scores for "Yes" and "No" answers. It details steps for editing, adding, and deleting risk areas and questions, including interface navigation and confirmation prompts. Additionally, it emphasizes that once numbers are assigned to risk areas or questions, they cannot be changed. The document serves as a guide for managing inherent risk assessments effectively.
    Audit Risks
    This document details the functionality of CCH Audit Automation for recording Identified Audit Risks, also referred to as Significant Business Risks. It provides instructions for users to add, edit, and manage risks, including features for maintaining risks for future audits, assessing their significance, and linking them to assertions. The system includes tools for risk assessment, audit response, and documenting conclusions. Other functionalities encompass risk summarization, printing options, and risk linkage across multiple sources, enhancing the audit process's efficiency and accountability.
    Default Specific Risk Questions
    CCH Audit Automation allows users to define specific risk questions for audit areas, although it's not mandatory. If no specific questions are set, default questions will be used. Users can edit the default questions through the "Specific risk questions" option in the Risk Model section. Up to 99 default questions can be defined, similar to inherent risk questions. The system utilizes a lookup table that combines specific and inherent risks for audits, with editing instructions provided in the manual.
    Risk/Sample Selection
    This document outlines the concept of audit risk, defined as the likelihood of undetected material errors during an audit. It introduces a risk model used in Audit Automation that requires total audit risk to remain below acceptable levels across various audit areas. The risks are broken down into inherent risk, control risk, and detection risk, with further subdivisions for detection risk. It emphasizes the importance of understanding these concepts to design effective audit procedures and assess risk at different levels. Additionally, it discusses general and control environments, and the calculation of residual risk, alongside a risk scoring system.
    Inherent Risks
    The document outlines the procedure for addressing inherent risk questions in an audit context. Users can access a dedicated window to view up to 99 risk areas, answer questions, and modify responses as necessary. The system prompts users to validate changes to ensure proper risk assessments. It includes functionalities for viewing prior comments, copying text, and overriding calculated risk levels, emphasizing that auditor judgment is crucial. Comments on overrides must be provided to rationalize any adjustments made. The document serves as a guide for navigating and utilizing the auditing software effectively.