Contents

• Important Changes
  • Licensing
  • Database
  • Statements
  • Errors
  • Editing Methods
  • History of Database
    Changes
• General Improvements
  • Module: Strategic and Annual
    Planning
  • Sampling
  • Determination of
    Materiality
  • Module: Analytic
    Procedures
    • Initial Procedures
    • Control Environment
    • Materiality Selection
    • Final Statements
  • Risk Identification and Risk
    Register
• Other Changes
  • System
    • Users
    • Nomenclature
    • Others
  • Audit and Project
    • New Type of Document:
      Questionnaire
    • Working on an Audit or a
      Project
    • Editing Methods
    • Search
    • Reports
    • Statements
  • Timesheets
  • Others

Important Changes

Licensing

Version 2.0 will no longer support the Free and Lite versions of
the program. Users of these versions who wish to use the program with
the new features must switch to one of the other license types.

New license type: Internal audit

Comparative table of license types for AuditDesktop varieties

Database

In version 2.0, the minimum supported version of the database management
system (DBMS) Firebird is 2.5. The DBMS must be updated to version 2.5
BEFORE the program itself is updated to 2.0.

Statements

In version 2.0, the amounts in the Statement of financial position will
be perceived as being in the thousands. Therefore, during the update all
previously entered amounts will be divided by 1000 and rounded to a
whole number.

Errors

The errors in statement of financial position items will also be
perceived as being in the thousands. During the update, their amounts
will also be divided by 1000.

Editing Methods

It is now possible for multiple users to edit the same audit method,
provided that they are not editing the same document at the same time.
Accordingly, the Save/Cancel buttons were removed on the edit
method level and all changes (add, edit, remove) to the documents are
implemented immediately.

History of Database Changes

Version 2.0 supports a log which contains all changes performed in the
database (except the tables for system usage that are irrelevant to the
entered data). Data is stored for every change, regarding operation
type, current and previous value, date of the change, and the user.

This option is automatically activated during update. If the changes log
is kept active, IT WILL SIGNIFICANTLY INCREASE the database size over
time. The administrator can deactivate this function if they consider it
unnecessary.

General Improvements

Module: Strategic and Annual Planning

A new module is added, with the following main features:

• Definition of risk areas with weighted risk factors that can be
  grouped into separate risks
• Tables for defining recommended number of audits, hours and the
  priorities when evaluating the risk during planning
• Risk evaluation in selected risk areas and audit universes during
  planning
• Determining of audited objects that are related to audit entities
• Building a Strategic plan
• Building a weekly-based Annual plan

When calculating the available resources, the following data is taken
into account:

• employees who are assistants or auditors
• their job position employment
• effective working hours
• planned leave
• work calendar

You can use both hours and days when planning.

Sampling

Sampling can be performed on three data sets:

• Operations Log
• Purchases Log
• Sales Log

This version supports the following sampling:

• Random sampling - a number or percentage of entries selected from
  the population, can be set as parameters of the random sampling
• Monetary unit sampling - fixed intervals. The value of the adopted
  level of  performance materiality can be selected as precision 
• Manual sampling

Determination of Materiality

We added a window for inputting the adopted materiality. The parameters
that can be entered are the following:

• Overall materiality
• Level of performance materiality - as a value and percentage of the
  overall materiality
• Reason for the materiality choice
• Basis for the materiality choice
• Previous period materiality

You can use the Analytical Procedures module to determine
materiality based on the statements entered into the program, using the
integrated calculation formulas.

Module: Analytic Procedures

The Analytical Procedures module is divided into several
sub-modules:

Initial Procedures

There are two subsections - Statement of financial position and
Income statement. Each subsection has the following functions:

• Input values from the statements
• Display variance between periods - as value and as percentage
• Classify items into groups, which will be used when selecting
  materiality. The options are:
  • Statement of financial position - Long-term assets, Current
    assets, Long-term liabilities, Current liabilities, Equity and
    No group
  • Income statement - Revenue, Expenses, Tax, Profit and No group
• Selection of material items
• Selection of management assertions that will be tested
• Comment
• Create risk connected with the selected item and management
  assertion

Control Environment

This section shows all documents (control tests, investigation
procedures) related to the management assertions that are selected for
testing or as material, from the statement of financial position or the
income statement items in the Initial procedures. Indicating which
document is related to which management assertion and item is done in
the Edit Method.

Materiality Selection

This section shows 4 possible values, based on the data entered in the
Initial procedures and the items grouping, which provide the basis for
the materiality selection:

• Equity - the sum of all values from the statement of financial
  position, which have been grouped in Equity
• Assets - the sum of all values from the statement of financial
  position, which have been grouped in Long-term and Current
  assets
• Revenue - the sum of all values from the income statement, which
  have been grouped in Revenue
• Profit before tax - the sum of all values from the income
  statement, which have been grouped in Revenue subtracted by all
  those grouped in Expenses

It is possible to select materiality as a percentage of one of these 4
sums as well as to select the level of performance materiality.

Final Statements

Displays the information entered in the Initial procedures, using values
from the final statement of financial position and income statement.

Risk Identification and Risk Register

• Risk register support
• You can now add identified risks to any document
•  You can now add risks to the risk register from the initial
  analytical procedures

The following fields must be filled out for every risk:

• Risk - short description
• Likelihood (1-5)
• Impact (1-5)

The following additional information can be entered:

• Detailed description
• Documents related to the risk
• Management assertions affected by the risk
• Statement of financial position and income statement items affected
  by the risk

Risk score calculation uses the following formula:

Score = Likelihood * Impact

Risk level is determined from the following table:

Other Changes

System

Users

User settings are changed. The program now differentiates between User
and Employee. There is an Employee nomenclature where it is not
necessary for each employee to be a user of the system. An employee can
have multiple usernames and passwords to access the system, which
supports two types of users - Firebird and Windows

When a Firebird user logs in, they must enter their username and
password. This is the only type of user available so far in the program.

When a Windows user logs in, it is not necessary to enter a username and
password. The program accepts as a user, the user with which the person
who started the application presents themselves to the database server.

Nomenclature

• Leave types
• Job positions
• Work calendar
• Organisation structures (Audited objects)  
• Audit universes (Audit entities)

Others

• Spell checking - Bulgarian and English (US & UK) dictionaries for
  spell checking are provided with the installation. Other languages
  can be easily added.
• Colour customisation of some of the displayed values
• The option to use online help system - constantly updated with the
  latest changes to the program's documentation
• The option to save filters, sorting arrangements and grouping of
  tables

Audit and Project

There are two types of engagements in version 2.0 - project and audit.
The project has fewer types of statements, reports and parameters in
documents. Projects are applicable for:

• Preparatory procedures - after an audit request is made and before
  the engagement is accepted. The audit method can be set up so that
  before the audit engagement is accepted, only the procedures for
  research and contract preparation documents are visible.
• Quality Control systems
• Others

In addition to type of engagement, we added different kinds of
engagement - Initial, Subsequent, Intermediate, Follow-up or other. At
this stage of the program's development this parameter is for
informational purposes only.

New Type of Document: Questionnaire

Designed to test the client's controls, but it can be used in all
situations where the client must answer a number of predefined
questions. The weight value for each question can be preset and the
whole document can have a defined limiting value for answer satisfaction
rate. The questionnaire is sent to the client as a spreadsheet file.
After the questionnaire is filled out, it is imported back into the
audit where the answers can be evaluated.

Working on an Audit or a Project

• Add new documents during work on a given audit/project
• Add new document when adding a reference
• Remove reference from a step/question in program/checklist
• Load/Save parameters in Link-type documents in MS Word/Excel format
• Insert errors in income statements, in the same way as for the
  statements of financial position and trial balance

Editing Methods

• Rearrange and move steps and documents
• Rearrange steps/questions in programs/checklists
• Export/import checklists, programs and questionnaires to/from MS
  Excel format files
• Import File-type documents from folder and its sub-folders in method
• Automated activation/deactivation of documents, depending on the
  following conditions:
  • Type of engagement: Project or Audit
  • Test for management assertions of items in statement of
    financial position and income statement
• Automated activation/deactivation of checklist questions depending
  on conditions
• Automated activation/deactivation of program steps depending on
  conditions

Search

• Improved general search engine - search in programs and checklists
• Search inside checklist questions
• Search inside program steps

Reports

• Check for uncompleted documents (marked as "To be done", but are
  uncompleted)
• Check for unchecked documents (marked as "To be checked", but are
  unchecked)
• Document register with check/completion dates and the initials of
  the people who performed the procedures
• Report for completed documents without entered findings
• Errors log - display errors in income statements, in the same way as
  in statements of financial position and trial balance

Statements

• In addition to current and previous periods, a period before last is
  added. The values are displayed in thousands and only whole numbers
  are allowed.
• Income statement is added. The fields for the values are the same as
  those in the statement of financial position.
• Logs for sales and purchases have been added with possibility to
  import from the text format files submitted to the NRA.

Timesheets

• Mark records as to be invoiced
• Mark records as invoiced
• Customise the display format of type of activity and client when
  inserting records or viewing reports (Name, Code and name, Code,
  name and location)
• Time rounding in reports, depending on the settings of the specific
  activity (minimum time, step increase, calculation type)

Others

• Installation on the users' computers using Active Directory GPO
• New module for inserting parameters in MS Word and Excel documents.
  Supports Microsoft Office 2007 version or newer.
• Many other improvements
• Bug fixes