startPoints Forward Memorandum
How To

Points Forward Memorandum

CCH Audit Automation
Last update: Reading time 2 minutes
Document Handling

    The system allows you to maintain a points forward memorandum, which is carried forward with the client’s data when a balance forward is carried out. The memorandum should therefore be completed at the end of the audit and will be available to the planner in the following year.

    To enter the points forward memorandum, select [Points forward memo] from the Documents menu.

    If your system is set to use the internal word processor, the document will load and be displayed within the Internal Word Processor for editing. If it is set to use Word as your default word processor, Word will be loaded and the document displayed within that program.

    You may now edit the information displayed, or delete it and retype that which is relevant to the current year. If you are using the internal word processor, to save the document and return from the Internal Word Processor, click on the [Exit] button and confirm that you would like your amendments saved. Full instructions on how to use the Internal Word Processor are set out from Click here. If you are using Word, use the functions of that program to save the document and either close or minimise it to carry on processing in Audit Automation. If you intend using tax documents later in the current session then you should minimise Word so that it will take less time to load the next document that you wish to work on.

    If you wish to obtain a printout of the document, load the document as described above and click on the [Print] button. This will print the document exactly as it appears on the screen, with no heading or border. If you are using the internal word processor you may print the document with a heading and border, as part of the audit pack, using the [Review/Print] option on the Planning menu.

    As indicated, it is also possible to set Audit Automation to use Microsoft Word in place of the internal word processor. This is done using the File | System options form the Main window and is described in the System Manager's Manual. When Audit Automation is set to use Word, it will launch Word whenever any textual document is to be offered for edit and you may use all the features of that program in your documents.

    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.