Release notes for Enhanced CaseWare®/CICA Audit – August 2009

PEM Update #42 – build 126

Please review the following information prior to opening Enhanced CaseWare®/CICA Audit. It is recommended that you print a copy of this document and keep it for reference.

After installation

a)   If any errors are displayed during installation, please contact CaseWare International Inc. Technical Support.

b)  Refer to the Getting Started Guide for instructions on updating PEM "Enhanced" template client files. Detailed listings of the enhancements included in this update are outlined below. Note that there are two templates included on the CD – the PEM "Enhanced” template and the PEM "Standard" template. If you are using the "Standard" template these notes are not applicable.

c)   Any questions relating to the content included in the forms should be directed to the CICA at 416-977-3222. It is recommended to refer to the PEM Update #42 highlights letter for details on PEM Update #42 and details on the use of these forms.

Requirements

The Enhanced CaseWare®/CICA Audit template is designed using CaseWare® Working Papers 2008. To use the Enhanced CaseWare®/CICA Audit, you require:

·          Working Papers version 2008.00.350 or higher

·          Minimum 512 MB of system memory, 1,024 MB RAM or higher recommended for improved performance

·          Hard disk:

o   Minimum  25 MB for Audit content/libraries/help

o   Minimum 130 MB for each open Audit client file

o   Minimum  68 MB for each compressed Audit client file

Working Papers must be installed prior to installing the Enhanced CaseWare®/CICA Audit.

PEM Update #42

The changes in PEM#42 contain minor editorial revisions and no functionality changes have been made. To update any client files created with PEM Update #41:

1.      Delete outdated documents from the client file (see listing below)

2.      Add in the updated documents from PEM Update #42 using the Document Library functionality.

This must be completed for any existing client files created prior to PEM Update #42 to ensure all client files have updated content. Any custom work programs and checklists created by the user will continue to work in the updated client file. Please see the Help for detailed instructions on updating documents and procedures in an existing file.

For users who have client files created with versions prior to PEM Update #41 – you must ensure that the client files have been updated to PEM Update #41 prior to adding PEM Update #42 documents.

Dates are included on the bottom of each form – please refer to the PEM Contents Checklist for a detailed listing of the relevant dates for each form as issued by the CICA. Refer to the PEM Update #42 highlights letter for information on the content update. For details on any enhancements listed below, refer to the Help accessible from any document.

The CICA has advised that "In the fall of 2009, a new PEM (to be called C-PEM) will be published.  It will contain guidance on how to comply with Canadian Auditing Standards (CASs) that will be released in the Handbook in the fall and come into effect for audits of fiscal periods ending on or after December 14, 2010." Early adoption is not allowed.

Following are the enhancements and modifications between PEM Update #41 and PEM Update #42:

New Form

·          A000 – List of core audit forms for the risk-based audit

Note: All relevant documents included in the core audit forms are identified by “(CORE)” in the document name on the Document Manager.

Document Updates

The following documents have content updates as part of the PEM Update #42.

·          310 – Checklist – Audit completion

·          574N – Control design matrix – Revenues, receivables, receipts

·          574 – Control design matrix – Revenues, receivables, receipts

·          626 – Worksheet – Going concern

·          662 – Worksheet – Estimates and fair values

·          664 – Worksheet – Environmental contingencies

·          666 – Worksheet – Related party transactions

·          670 – Worksheet – Journal entries

·          690 – Worksheet – Library of potential additional audit procedures

·          B.100 – Investments – Audit procedures (differential reporting)

·          N.100 – Long-term investments – Audit procedures

·          BB.100 – Notes payable and bank debt – Audit procedures

·          UU.100 – Equity – Audit procedures (partnership)

·          UU.110 – Equity – Audit procedures (corporate)

·          570C – Control design – F/S preparations

·          574C – Control design – Revenues, receivables, receipts

·          NFP C.100 – Accounts, contributions and pledges receivable – Audit procedures

·          NFP MM.100 – Deferred contributions – Audit procedures

·          NFP TT.100 – Net assets (surplus, fund balance) for not–for–profit organizations – Audit procedures

·          NFP 805 – Presentation and disclosure checklist

Note:  Extended procedures listed in document 690 – Worksheet – Library of potential additional audit procedures are included in each audit program content library with asterisks (**) for ease of use.

Alternative (condensed) forms developed in PEM for smaller audits are identified by a "C" after the form number.

Alternative forms for a not-for-profit entity (as Microsoft® Word / Microsoft® Excel forms) are identified by "NFP" in the form number.

Minor Revisions

The following documents have minor editorial revisions as part of the PEM Update #42.

·          530 – Entity level controls – Design/implementation

·          568N – Control design matrix – [blank]

·          568 – Control design matrix – [blank]

·          572N – Control design matrix – Payroll

·          578 – Control design matrix – Purchases, payables, payments

·          578N – Control design matrix – Purchases, payables, payments

·          606 – Worksheet – Detailed audit response

·          510C – Identifying risks through understanding the entity

·          NFP 510C – Identifying risks through understanding the entity

To Get Started

Creating a Client File

Enhanced CaseWare®/CICA Audit can be integrated with your client data in one of three ways:

·          Add to an existing Working Papers client file
(i.e. merge the template documents into an existing client file)

·          Create a new file based on CaseWare®/CICA Audit with existing client data
(i.e. create a client file based on an existing Working Papers file or an accounting package)

·          Create a new client file based on CaseWare®/CICA Audit
(i.e. no existing client data at the time of creation)

Please see the Help for detailed instructions for each of these options.

Getting Started

Below are initial steps each user of the Enhanced CaseWare®/CICA Audit template can take:

User

·          In the client file, the user completes the applicable documents on the Document Manager. Other required documents can be brought in from the master file through the document library by selecting Insert | New Document | From Document Library from the Working Papers menu.

Firm

·          In the master file, the firm's first step is to review the programs and checklists on the Document Manager. The program settings in the document AO – General options should be reviewed.

·          Any modifications to the master firm copy of the Enhanced CaseWare®/CICA Audit file must be performed at the firm level prior to creating new files for the individual client engagements.

Note on Enhanced Risk Documents

In the Enhanced CaseWare®/CICA Audit, an enhanced version of the risk forms is included. They are denoted by the letter "E" after the document number, for example, 403E Worksheet – Scoping – Identifying FSAs and underlying business processes (Enhanced). The regular forms without the automation can be found as 403. Only one of the two forms should be filled out, as they are the same forms in different degree of automation. We recommend using the enhanced versions of the risk forms to report risk from any document in Enhanced CaseWare®/CICA Audit.