Methodology Update—Auditing executive and board compensation, and travel, hospitality, conference and event expenditures
Oct-2019
Target audience: All Attest Auditors
Effective date: The revised methodology is effective upon release.
Description:
The methodology has been updated to reflect the revised approach to auditing executive and board compensation, and travel, hospitality, conference and event expenditures.
Updates to the Manual:
The following audit manual sections have been updated to reflect the revised audit approach.
| Section | Section Title |
|---|---|
| 1113 | Documenting audit work |
| 5041 | Identify risks |
| 5503 | Discussing Among the Engagement Team |
| 11001 | Introduction |
| 11031 | Auditing executive and board compensation, and travel, hospitality, conference and event expenditures |
Updates to Templates:
The following templates have been updated to reflect the revised audit approach.
- Report to the Audit Committee—Annual Audit Plan
- Interoffice Letter of Instruction Template for Use on Group Audits
- External Firms / Auditors (Non-OAG) Letter of Instruction Template for Use on Group Audits
Existing TeamMate and INTRAnet links to the templates will direct auditors to the most recent version.
Updates to the procedures:
As a result of the revised approach to auditing executive and board compensation, and travel, hospitality, conference and event expenditures, the following updated procedure document is now available:
- Other risk assessment procedures (Oct-2019)
The Annual Audit Procedures TeamStore cabinet has been updated for the updated procedure document.
| Program (PRG) | Procedure Step | Change | Impact on audit teams |
|---|---|---|---|
|
B.4.PRG—Assess Risk |
Other risk assessment procedures (Oct-2019) |
Removed reference to minimum cyclical testing requirements. Procedure document |
Action required Ensure you have the most updated procedure document. |
Questions: Contact AAPT