Financial Statement Working Papers Awards

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Financial Statement Working Papers
Awards

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Background to Working Paper Awards

• Awards commenced during the 1995-96 audit cycle
  for Government Departments only
• Assist in the implementation of accrual
  accounting with the introduction of AAS 29
• Based around best set of financial statement
  working papers

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Background to Working Paper Awards

• Main shortcomings in clients workpapers
• Evidence that workpapers were being prepared
  after the statements were completed
• Reasons for variances in account balances from
  year to year were not being provided
• No linkage from workpapers to financial statement
  notes, and in some cases no workpapers existing
  to support financial statement figures

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Working Paper Awards for 2004-05

• Open to all clients for the 2004-05 Audit Cycle
• Categories are
• Government Departments
• Local Government
• State-Owned Companies and GBEs
• Other Statutory Authorities
• Based around good working papers and good
  governance practices

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Working Paper Awards for 2003-04

• In summary, the purposes of financial statement
  working papers are
• A framework for the compilation of financial
  statements by current and future preparers
• A central reference to the evidence required to
  support transactions, balances and estimates
  disclosed in the financial statements
• A trail between the entity's financial records
  for the year and the financial statements for the
  year, which can be followed by persons having a
  quality assurance function and
• A record of the quality control processes
  employed in the preparation of the financial
  statements.
• Not only good for us, but good for you too!

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Working Paper Awards Checklist / Score-sheet

• Based around 18 selection criteria, which
  encompass the issues noted previously
• Each selection criterion was given a yes/no score
• Assessment was carried out by Team Leader
• Comparison between entities, final decision made
  between the Directors Financial Audit

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Working Paper Awards Selection Criteria

• Timetable prepared and adhered to, including
  evidence of delegation
• Early close-off of key balances
• Early review of draft format of statements
• Regular meetings held to address disclosure
  issues/progress of statement preparation and
  audit
• Advising Audit early of disclosure issues
• Lead sheets that link Financial Statements items
  to the trial balance, with comments for major
  variances

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Working Paper Awards Selection Criteria (cont)

• Checklist for compliance with statutory and other
  regulatory requirements
• Checklist for compliance with Accounting
  Standards
• Explanations for adjustments to account balances
• Logical structure and cross-referencing of
  workpapers

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Working Paper Awards Selection Criteria (cont)

• Schedules to support amounts set out in notes
• Copies of year-end journals or reference to where
  journals are located
• Were the Statements and workpapers subject to a
  Quality Assurance (QA) process before being given
  to audit
• Timeliness of provision of workpapers and
• Availability of client to assist with TAO queries

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Working Paper Awards Overall Comments

• Majority of clients obtained reasonable scores
  and assist in ensuring that TAO is as efficient
  as possible
• Sometimes variance explanations are too general,
  but improvement has been noted in the past year
• Our pro forma workpapers are available on our web
  site, including standards checklist
• We need your assistance to ensure the audit is
  efficient!

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2004-05 Award Winners Agencies

• HIGHLY COMMENDED
• Education
• OVERALL WINNER
• Dept of Premier and Cabinet

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2004-05 Award Winners Local Government

• HIGHLY COMMENDED
• Derwent Valley
• Devonport City
• OVERALL WINNER
• West Tamar

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2004-05 Award Winners GBEs/SOCs

• HIGHLY COMMENDED
• Metro
• OVERALL WINNER
• Aurora

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2004-05 Award Winners Statutory Authorities

• HIGHLY COMMENDED
• RBF
• OVERALL WINNER
• Esk Water

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Working Paper Awards 2005-06 Audit Cycle

• Awards will be run again for the coming audit
  cycle
• Given the tighter timeframe due to IFRS and the
  earlier reporting dates for FMAA and GBE
  entities, meeting deadlines is more critical than
  ever for our Office
• If you have any queries, refer to you normal
  audit contact, or call Directors of Audit.