Financial Audit Update Thursday 3 March 2011 and Thursday 10 March 2011_part7 pptx

Other operational impacts
• Key systems and financial records
– Business continuity
– Changes to control environment
– Implementation of temporary manual
processes
– Impact on CFO statement on controls
– Potential loss of records
– Impact on your clients/customers
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Other operational impacts
• Changes in operational aspects
– Changes to key programs and priorities
– Availability of funds for approved projects
– Availability of key staff
– Are existing policies adequate?
– Will these impact on financial process and
financial statement preparation?
– Will these require further disclosure in the
financial statements?
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Other possible areas impacted
• Inventories
• Investment properties
• Agricultural assets
• Investments in controlled entities
• Commitments
• Contingencies
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Financial statements and audit
• Timing of audit visits may be impacted
– Impact on audit clients
– Impact on QAO and contract auditors
• Likely to be revisions to audit strategies
developed prior to the natural disasters
• Impact on ability to prepare financial
statements and have them audited within
statutory timeframes
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Potential impact on audit opinions
• Modifications may possibly arise from:
– Inability to form an opinion on asset values
reported in financial statements
– Collection of charitable revenue (AGS 1054)
– Loss of supporting documentation
• Our aim will be to ensure:
– There is an appropriate understanding of the
basis for any modified opinions
– Consistency of opinions issued
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Communication of issues and impacts
• Need for regular and timely communication between
QAO and our clients
• QAO to liaise with central agencies
• Look to provide consistent information internally and
externally to QAO

• Other information to be made available through
– Auditor-General’s Reports to Parliament
– Inform
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Accounting and Auditing
Standards Update
Patrick Flemming
Manager –
Audit Policy and Quality
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Overview
• Special Purpose Financial Statements
• Leases
– Current year changes
– Future developments
• Financial Instruments
• Reduced Disclosure Requirements
• Revenue
• Other Developments
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Special Purpose Financial Statements
• Amendments to auditing standard ASA 800
• Changes to QAO engagement letters
• Management required to:
– Identify intended users
– Identify standards & interpretations applied
– Identify who approves significant accounting policies

and where documented
• Mandatory emphasis of matter on basis of
accounting
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Leases
• Changes to AASB 117 for 2010-11:
– Default classification of land element in land &
building lease is no longer an operating lease
– Must reassess in 2011
– Retrospective application
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