Institute of Certified Bookkeepers
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Would I Audit or Review an Association?

  • 22 posts
  • # 89621

Yes, I would review
No, I wouldn't Audit

Increasingly bookkeepers are being asked to review the work of another bookkeeper or in some cases “audit” a set of books. You cannot “audit” as the market now is permitted to make assumptions about the qualifications and competence of an audit.

However we do believe you can issue a “Statement of Review“ of the books and records of an association.

We also believe that it is appropriate for a bookkeeper to be engaged to review the work of another. However as with all assignments, be precise about your level of engagement: what is it that you need to report on to deliver the expectations of the business.

We have seen various reviews conducted by members which include criticism of another bookkeeping where it isnt that the other person was wrong but just that it was performed a different way. When reporting back to the business on a matter of difference ensure that the outcome to the business and its reporting would be different. Is the issue you are commenting on a different approach that means the results are different, or is it just a different style?

From ICB's August 2011 Newsletter:

Bookkeepers approached to provide “Audit” of an organisations accounts.
“Statement of Review” by an ICB member maybe appropriate.

“My business has been approached by various not for profit organisations in regards to auditing of their accounts and I was wondering if I was legally able to offer this service?”

POLICY

If the organisation is prepared to have you "audit" their books they must know and acknowledge to you in writing that you aren't a registered company auditor. You need to advise them in writing of your degree of audit training and knowledge and experience.

The biggest legal impediment would be the organisations own constitution. If their constitution requires a formal audit or states it must be by a registered company auditor then you cannot accept the appointment.

In concept there is nothing stopping you, however, we strongly recommend you DO NOT issue an audit report. This would be seen as misleading as an audit report would need to be issued following an appropriate and accepted audit process (refer accounting standards for guidance).

At best you could review the information and issue a "statement of review".

BEFORE YOU ISSUE A STATEMENT OF REVIEW

In order for you to provide such a statement you must conduct processes and procedures that provide satisfactory reason for you to form the views expressed in the “Statement”. You must ask yourself if someone challenged your view, have you got satisfactory evidence and reason, documented and proven, to be able to show why you have formed the view.

Unless you are trained as an Auditor and registered as an Auditor, do not give any impression that you have conducted audit techniques, or undertaken audit procedures. To use such terms could leave you open to be challenged.

If the organisation is prepared to have you “audit” their books they must know and acknowledge to you in writing that you aren’t a registered company auditor. You need to advise them in writing of your degree of audit training and knowledge and experience. The biggest legal impediment would be the organisations own constitution. If their constitution requires a formal audit or states it must be by a registered company auditor then you cannot accept the appointment.

In concept there is nothing stopping you, however, we strongly recommend you DO NOT issue an audit report. This would be seen as misleading as an audit report would need to be issued following an appropriate and accepted audit process (refer accounting standards for guidance).

At best you could review the information and issue a “statement of review”.

A draft Statement of Review can be found here



Edited at 16 Sep 2014 06:42 AM GMT by Helen (MODERATOR)

  • Member in Practice
  • Practice Certificate
  • 31 posts
  • # 111666

Hi Simone

 

Thanks for this post. I am just conducting my first review for a small membership association with a paper-based record-keeping system.

I am delighted that there is an ICB template with wording that I can use as a guide for the report. So helpful!

Do the ICB have a recommendation as to an appropriate review for small associations with single-entry books? I looked at the 'Initial File Review' and there is a big component of setup-related checks for software, etc. 

I am looking for a basic checklist, but what I intend to focus on are things like:

- do the bank statements balance to the book balance

- does everything look 'reasonable'

- have a look at some of the larger transactions and make sure they are substantiated

- missing/unpresented cheques, undeposited funds

- basic review of process & make suggestions on any improvements, inc separation of duties, manual setup of paper books, etc

 

As per your guidelines above, I will include a note on whether the recommendations will change the reporting outcome, or just make it easier for them to self-check and report.

I don't want to overcomplicate it as I am charging a flat fee and it is just a local golfing group, but if anyone else has a checklist they have used, or can think of things to add to the list, feedback is welcome. 

Cheers,

Jenny.

 

  • Fellow in Practice
  • Practice Certificate
  • 277 posts
  • # 111667

Hi Jenny

 

we have a few templates that help when dealing with business on our Templates and Checklists pages which relate to certain areas.  One that you may find good for this is our Initial File review.

 

Our templates are located on our websites  in our resources under tempaltes and checklists

  • 1 post
  • # 119011

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Edited at 01 Sep 2020 05:17 AM GMT

  • 34 posts
  • # 119145

A review provides a lower level of assurance than an audit. As a review involves less work than an audit, there is a higher risk that any material misstatements that exist in the financial statements may not be revealed by the review. The benefit is that a review is usually significantly cheaper than an audit.

  • 2 posts
  • # 119424

The audit is a comprehensive understanding of the financial status of the association. In addition to viewing the association’s financial records, the CPA will also verify the information provided by the association. Source: Coursework help online by UK Writing Experts.

  • 1 post
  • # 119457

review provides limited assurance rather than a reasonable amount of assurance, so in simple terms, a review reports on the plausibility of the financial statements. and I can also write my essay for me on this also I can do more research on this topic.

  • 7 posts
  • # 119535

devonbrown said:

review provides limited assurance rather than a reasonable amount of assurance, so in simple terms, a review reports on the plausibility of the financial statements. and I can also write my essay for me on this also I can do more research on this topic.


 Nice service!

  • 2 posts
  • # 119543

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  • 2 posts
  • # 119641

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Edited at 15 Mar 2021 04:30 PM GMT

Edited at 15 Mar 2021 04:35 PM GMT

Edited at 15 Mar 2021 04:37 PM GMT

  • 2 posts
  • # 119642

Thanks for the useful information. This topic is relevant to me. I am studying to be an accountant and have written essays. By the way, if you need help writing an essay, while searching for the authors of the letter, I found an excellent service https://writemypapertoday.org/ The guys helped me with my topic, for which I am very grateful to them and advise everyone, now I can safely turn to them for help. Qualitatively, professionally and on time.






 

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