Prepare the financial statements

In Caseware Audit, the financial statements are prepared by the client and attached to the engagement file as separate deliverables. The auditor performs procedures over them, reviews supporting worksheets, and issues the auditor's report separately. The financial statements typically consist of the Balance Sheet, Statement of Income and Loss, Statement of Retained Earnings, Statement of Cash Flows, and the Notes to the Financial Statements.

The relevant documents sit in the Financial Statements folder of the Reporting phase:

E-400 Preliminary Financial Statements — placeholder for attaching the draft financial statements over which audit procedures will be performed.
E-405 Final Financial Statements — placeholder for the final post-adjustment financial statements over which the auditor's report will be issued.
E-410 Auditing Statement of Cash Flows — checklist of procedures to obtain sufficient appropriate audit evidence over the statement of cash flows.
E-420 Income statement — worksheet linked to engagement trial balance data to support review of revenue, expenses, and net income.
E-425 Balance sheet — worksheet linked to engagement trial balance data to support review of assets, liabilities, and equity.

The auditor's report is drafted separately in the Audit Opinion folder (E-500 Requirements - Audit Opinion, E-510 Audit Report, E-515 Signed Audit Report), and key audit matters, when required, are documented at E-505 Key Audit Matters Documentation.