Methodology Update—TeamMate Update July 2024
Jul-2024
Target audience: All Attest Auditors
Effective date: Immediately
Description of subject: This update includes changes to the TeamMate Cabinets and the templates and checklists. Significant changes to the methodology are summarized below.
Key changes are:
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Updates to all TeamMate library cabinet, which includes the following four cabinets as well as templates and checklists.
- The Annual Audit Procedures Cabinet
- The Annual Audit Procedures—Supplement Cabinet
- The IFRS Procedures—Cabinet
- The PSAS Procedures—Cabinet
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Substantially all procedures, in all cabinets as well as templates and checklists have been modified to update the font and colour scheme as we move away from our strategic alliance contract. Unless specified below in this announcement, the modifications are editorial and limited to the layout of the documents (colours and font) with no significant modifications to the content.
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The TeamMate library Annual Audit Procedures cabinet has been updated to include the procedures from the shared PROxI folder 2332306 that were published in October 2023. As such, all annual audit procedures stored in the shared PROxI folder 2332306 will be removed.
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Improvements to the Annual Audit Procedures cabinet to align the procedure type ‘Engagement Leader’ with procedures “Engagement leader and team manager—Planning sign‑off” and “Engagement leader and team manager—Completion sign‑off”.
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Improvements to the ‘’Engagement Quality Reviewer checklist and sign‑off (CSQM 2)’’ template.
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Improvements to the ‘’External Firms/Auditors (Non‑OAG) Letter of Instruction Template for Use on Group Audits’’ template.
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Updates to the ‘’Engagement Letter’’ template to align with CAS 600 (Revised).
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Minor improvement to the ‘’Audit Planning Template’’.
Note: other than the modifications made to the Engagement Letter, this update does not include the necessary changes to the remaining methodology to comply with CAS 600 (Revised). Updates to our methodology for CAS 600 (Revised) will be incorporated in a future methodology update.
Update to the TeamMate library Cabinets (other than specified below)
Required action:
Upon release of this announcement, audit teams are expected to integrate the updated TeamMate library Cabinets (updated for font and colour scheme) into their audit files. In doing so, audit teams could establish a plan to ensure that all procedures in their audit files have been replaced, with the updated procedures, within a reasonable time frame. The plan can consider upcoming updates, such as CAS 600 (Revised), where transition to the related ‘’new/updated’’ group audit procedures will be inevitable.
Annual Audit Procedures Cabinet
Required action:
Ensure to use the most updated Annual Audit Cabinet for TeamMate files created post this announcement or files where no work has yet commenced.
| Program (PRG) | Procedure Step | Change |
|---|---|---|
|
A.1.PRG—Audit Mandate and Client Acceptance and Continuance |
CPA Canada licence Agreement |
Copyright date changed from 2023 to 2024. |
|
A.2.PRG—Timetable and Engagement Management |
Independence and ethical requirements |
Added the procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Planning sign‑off” procedure. |
|
General engagement decisions |
Removed procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Planning sign‑off” procedure. |
|
|
B.3.PRG—Internal Control Framework |
Understand and evaluate the components of the entity’s system of internal control |
Removed procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Planning sign‑off” procedure. |
|
Understand and evaluate the components of the entity’s system of internal control—Control activities |
Removed procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager— Planning sign‑off” procedure. |
|
|
Identify IT risks and understand and evaluate related ITGCs |
Removed procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager— Planning sign‑off” procedure. |
|
|
B.4.PRG—Assess Risk |
Understand accounting estimates |
Enhanced steps to update procedure reference included in the shared PROxI folder 2332306 in October 2023. Reference to procedure document P_01713E_Understand_accounting_estimates has been replaced by P_01800E_Understand_accounting_estimates. |
|
Determine scoping and perform inherent risk assessment—TeamMate |
Enhanced steps to update procedure reference included in the shared PROxI folder 2332306 in October 2023. Reference to procedure document P_01706E_Determine_scoping_inherent_risk_assessment. has been replaced by P_01801E_Determine_scoping_inherent_risk_assessment. Updated the wording to remove reference to the ‘Audit Planning Template—Instructions—CAS 315’. |
|
|
C.1.PRG—Materiality |
Determine materiality |
Added the procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Planning sign‑off” procedure. |
|
C.2.PRG—Develop Audit Plan |
Determine audit strategy and plan |
Enhanced steps to update procedure reference included in the shared PROxI folder 2332306 in October 2023. Reference to procedure document P_01730E_Det_audit_strategy_and_plan has been replaced by P_01802E_Det_audit_strategy_and_plan Updated the wording to remove reference to the “Audit Planning Template—Instructions—CAS 315”. |
|
D.1.PRG—Completion and Reporting Activities |
Update initial assessment of independence |
Added the procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Completion sign‑off” procedure. |
|
D.2.PRG—Financial Statements and Notes |
Submit final documents to AEA |
Removed procedure type ‘Engagement Leader’ to align with the “Engagement leader and team manager—Completion sign‑off” procedure. |
Annual Audit Procedures—Supplement Cabinet
Required action:
Ensure to use the most updated Annual Audit—Supplemental Cabinet for TeamMate files created post this announcement or files where no work has yet commenced.
| Program (PRG) | Procedure Step | Change |
|---|---|---|
|
C.1.PRG—Quality Reviewer |
Engagement Quality Reviewer—Planning sign‑off |
Updated step to remove reference to EQR checklist in used for audits of financial statements for periods beginning before 15 December 2022. |
|
Engagement Quality Reviewer—Completion sign‑off |
Updates to templates
The following is a summary of all revisions other than editorial revisions and any actions that need to be taken:
|
General |
Engagement Quality Reviewer Checklist and Sign‑off (CSQM 2) |
Improvement made to the template to facilitate the EQR review. |
The updated template must be used for engagement quality reviews commencing after this announcement. |
|
General |
Quality Reviewer Checklist |
Deleted |
This checklist is removed (outdate). EQR must use the ‘Engagement Quality Reviewer Checklist and Sign‑off (CSQM 2)’ checklist. |
|
Planning |
Audit Planning Template |
Minor improvements to the template to:
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Audit teams are allowed to continue using the previous version of the template. |
|
Planning |
Engagement Letter |
Updated to align with new CAS 600 (Revised) requirement related to agreeing the terms of the audit with group management. |
The updated template must be used for audits of group financial statements for periods beginning on or after December 31, 2023. The changes made to the Engagement Letter are not relevant for non group audits. However, it is good practice for audit teams to always use the most recent templates available on the INTRAnet. |
|
Planning |
External Firms/Auditors (Non‑OAG) Letter of Instruction Template for Use on Group Audits |
Editorial changes to the appendix on Confirmations regarding the Component Auditor Firm’s System of Quality Management and the Component Auditor’s Engagement Resources. |
The updated template needs to be used by all audit teams moving forward. |
| Annual Audit Templates | |||
|---|---|---|---|
| Phase | Template Name | Change | Action Required/Impact |