How to Conduct a New FSAA Audit

1.	Open the Settings tab and enter the basic data which you will be working with, such as Job positions, Employees and Activities. For more details, visit the First steps page, steps 3-4.	picture
2.	Enter the data of the company/companies for which you will conduct the audit engagement. To do so, open the Home tab and go into the Clients subsection. Click the Add button in order to open the Client data window. It is important that you should add as much of the client's data as possible because it will be used in the parametrised working papers later on.
3.	Creating a new audit engagement The term ''New audit engagement'' is given from the program's point of view. From the point of view of the audit process, the engagement can be ''Initial'' or ''Subsequent''. We'd like to draw your attention here to one of the system's main concepts: the availability of a main document library. When you create a new audit engagement, this library will be ''copied'' as the ''audit's library''. The activation of all working papers in the ''audit's library'' depends on all the parameters that you have selected when first creating the engagement. Right click on the client for whom you wish to create a new audit engagement From the context menu, select the New engagement option Open the General tab and fill in the following fields: Engagement type - you can choose between ''Audit'' and ''Project'' engagement type Audit type - select either ''Initial'' or ''Subsequent'' audit type Audit name - enter the name of the audit engagement in the Approach field, select the FSAA 2.x approach In the Type of engagement field, select the Medium or Large option Open the Team tab and select the engagement's Team leader. It is advisable that you also enter the engagement's team members. Open the Accounting tab and select Trial balance type and Reporting currency. Mark whether you wish to use the Control TB. Note You can also fill in the Audited period section, which has informative functions for the time being.
4.	Acceptance/Continuance of the engagement Sections 10.10 Engagement risk and control environment and 10.20 Terms of engagement include various documents related to the acceptance or continuance of an engagement, such as letters to previous auditor, protocol from the meeting with the previous auditor, declaration of independence, declaration of confidentiality, etc. The documents' visibility depends on whether the engagement is ''Initial'' or ''Subsequent''. You can fill them in and send them as attachments through the program's Email module. To do so, right click on the document and select the Send by Email option from the context menu. If you wish to attach additional files, right click in the Attachments section and select the Attach file option. Select the desired file from your local computer's file system and click Open.
5.	Import the Initial and Previous trial balance. If you are working with the 6-column trial balance, open the Check previous trial balance tab in order to check whether the Closing balance of the previous year equals the Opening balance of the current year.
6.	Click the Chart of accounts button and map the accounts to their corresponding items in the window that opens. Info In case there is an account whose balances are not associated with any particular item and hence must be distributed between two or more items, you can perform one of the following options:Select one item and map the account to it. Enter the adjustments manually in the Statement of financial position and the Income statement.The account is multiplied as many times as the number of items it must be mapped to, and the sum is distributed among these sub-accountsThe account is not mapped anywhere; the adjustments are entered in the Statement of the financial position and the Income statement.
7.	Open the Mapped trial balance tab in order to check whether there are any accounts which have not been mapped yet. In case there are such accounts, you can return to the Chart of accounts to map them, or you can adjust them manually in the Statement of financial position and Income statement windows. Info To see the sums of the Trial balances grouped into items, open the FS Lines (Financial Statement Lines) tab.
8.	Open the Statement of financial position window and click Data. Enter the values in the Period-1 and Period-2 columns for the previous period and period before last. You can enter the adjusting values manually in the Correction / Manual entry column. The same steps as described above must be performed for the Income statement values.
9.	Engagement materiality In order to determine the materiality of the engagement, you must have imported the Trial balance and statements. Engagement materiality is determined in the following way: Open the Audit tab and go to the Materiality subsection Right click on the materiality indicator and select the Use selected value Determine the performance materiality as a percentage from the overall materiality Tip If you do not want to apply the available materiality indicators, you can enter your own values manually. The main document 11.40.00 Materiality determined at the beginning of the audit is a reference file which is part of the 11.40 Determine planning materiality section. This document draws information from the Materiality section and is automatically filled in by the program. If necessary, it can be complemented with additional information. In case you wish to complete the document, right click on it and select the Complete option from the context menu. In this way, even if you change the Initial trial balance, the program will save the content that it had at the beginning of the engagement planning.
10.	Open the Statement of financial position analysis and Income statement analysis tabs in order to define which items are material as well as what type of control activities and/or substantive procedures will be conducted. By default, all items that exceed the determined materiality will be marked and it will be defined whether CT and SP will be applied (Control testing and Substantive procedures). The auditor can manually change this information and mark items that are below the determined materiality as well as unmark any particular item whose value is below or equal to the selected materiality. When marking items which are material, all working papers that are associated with them will be activated in the 50-80 Substantive testing sections of the library. The Statement analysis active windows also allow you to add risks. To do so, right click on a selected item and select the Add risk option from the context menu. Section Risks will display all risks that affect the selected item. The Documents section displays all documents that have been activated, depending on what risks you have added and what items have been selected as material.
11.	Understanding the client's business The main document used for understanding the client's business is 11.10.00 Understanding the entity and the environment in which it operates. It is organised as a Checklist which covers ISA 315 and its regulations. ISA 315 regulations are available for every item in the Description section. Each research that you make can be saved in the Comment section - for this purpose, click the Edit button and enter the text in the window that opens. Research can be also be saved as a reference file. In fact, there is no difference whether you will save your notes in the Comment section or in a reference file. In case there are documents connected with the entity, such as regulations, schemes, contracts, etc. for some question, you can attach them as attached files in the Files section or attach them to the reference documents, depending on your personal preference. In this document you can also add risks. Open the Identified risks tab, click the Add risk button and enter the data of the risk that you wish to add in the respective fields.
12.	Understanding the control environment Control activities are identified in the 11.20 and 11.21 library's sections. The two main documents that have to be filled in are 11.20.00 Understanding the control environment, information system and related business processes, control activities and 11.21.00 Controls for material statement items.
13.	Preliminary analytical procedures The document 11.30.00 Preliminary analytical procedures shows all material items and financial indicators. You can enter findings, issues to discuss with the client/team, reviewer's comments and other additional data in the respective fields.
14.	Engagement plan Open the Audit tab and click the Plan button. If you have not yet created the engagement plan, the program will ask you whether you wish to do it now. The Project plan active window allows you to add new tasks and select the assignees as well as update their permissions either for a selected task, or for the whole plan. You can also specify the start date, due date and the expected duration of each task.