Hardclose2003-课件（PPT-精）.ppt

Senior – 13 October 2003 Semi senior – 13 October 2003 SAII – 17 October 2003 What is hard close “Full” audit at interim date PLUS rollforward procedures (Full = most of the audit work) Why performing hard close Assist in meeting tight reporting deadline Rebalance audit effort to reduce time pressures at year-end Be careful Hard close means MORE WORK Will not be feasible for all clients Hard close ? Interim audit work Criteria for hard close Plan to rely on controls (if unable to rely on controls, may not be possible to design effective and efficient rollforward procedures) Effective internal control policies and procedures as to completeness, validity, recording and cut-off Non-specific risk items in most cases (unless mitigated by a control activity) Strong period end routines at interim date Criteria for hard close – cont’d Availability of accounting information at interim date and at balance sheet date Sufficient information to permit a review between hard close date and year-end Year-end balance of the account is predictable within reasonable range Audit work “Full” audit at period 10 or 11 (the period between hard close and final should not be too long) Rollforward procedures Extend test of controls in intervening period between interim date and balance sheet date and update conclusions Seasonal fluctuation is acceptable. However, if there is unexpected significant fluctuation in the intervening period, additional work at y.e. required. (Should inform MIC/PIC immediately) “Rollforward testing” – Balance Sheet Usually most efficient to use analytical rollforward procedures to extend conclusions derived at an interim date to the balance sheet date Review accounting entries between hard close date and year-end for significant non-routine adjustments and unusual reconciling items If movement J, perform additional sample testing No additional sampling tests are required in the absence of significant fluctuation. Rollforward testing – Income statement Int