FILE COMPLETION CHECKLIST - Canadian Institute of Chartered ...

Practice Aid 2FILE COMPLETIONCHECKLISTALLIANCE FOR EXCELLENCE IN INVESTIGATIVE AND FORENSIC ACCOUNTING

BOARD OF THE IFA ALLIANCEEdward Baskerville, CA•IFA, Baskerville Consulting Inc. (Chair)Peter Armstrong, CA•IFA, KPMG LLPPaul Bradley, CA•IFA, PricewaterhouseCoopers LLPPeter Dent, CA•IFA, Deloitte & Touche LLPDavid Elzinga, CA•IFA, Grant Thornton LLPDouglas Kalesnikoff, CA•IFA, University of SaskatchewanArthur Lavigne, CA•IFA, LBC International Investigative Accounting Inc.Gary Moulton, CA•IFA, Deloitte & Touche LLPVictor Neufeld, CA•IFA, Prairie Forensic & Investigative AccountingGary Timm, CA•IFA, Deloitte & Touche LLPIFA STANDARDS COMMITTEEDouglas Kalesnikoff, CA•IFA, University of Saskatchewan (Chair)Kay Holgate, CA•IFA, Grant Thornton LLPArthur Lavigne, CA•IFA, LBC International Investigative Accounting Inc.Linda Robinson, CA•IFA, University of WaterlooDerek Rostant, CA•IFA, KPMG LLPLegal Reviewer: Mary Jane Stitt, LLB, Blake Cassels & Graydon LLP© Copyright 2010The Canadian Institute of Chartered AccountantsAlliance for Excellence in Investigative and Forensic Accounting277 Wellington Street WestToronto, OntarioM5V 3H2www.cica.ca/ifaifa.alliance@cica.caPrinted in CanadaDisponible en français

IFA Practice Aids (IFA PA)Notice to ReaderIntroductionThe IFA Practice Aids supersede the Practice Aid 95-01 issued by the Investigative and ForensicAccounting Interest Group. The IFA Practice Aids will be issued from time to time to provide directionregarding matters not specifically addressed in the IFA Standard Practices and/or assistance on the useof the Standard Practices for Investigative and Forensic Accounting Engagements – November 2006(‘IFA Standard Practices’) as required. The Practice Aids are developed and revised by the IFA StandardsCommittee and are published upon approval of the IFA Board.AuthorityThe IFA Board publishes IFA Practice Aids in response to member interest or changing circumstances.These may include:• interpretive publications expressing the views and opinions of the Board but do not have thesame authority as the IFA Standard Practices• matters requiring the IFA’s consideration in situations not specifically addressed in the IFAStandard Practices• suggested practices to provide helpful guidance to practitioners in the application of the IFAStandard Practices.IFA Practice Aids may be withdrawn for various reasons such as:• changes in legislation or case law• the material is no longer useful because the IFA Standard Practices have been amended• the material is out of date.Effective DatesUnless otherwise indicated, IFA Practice Aids should be considered effective the first day of the monthafter issue.IFA – PA-2 File Completion Checklist 1/8

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IFA – PA-2 File Completion ChecklistIntroductionThe File Completion Checklist is intended to assist those conducting IFAengagements as described in the Standard Practices for Investigative and ForensicAccounting Engagements, November 2006 (‘IFA Standard Practices’) in ensuringconsideration of the IFA Standard Practices. Completion of this document does not,in itself, provide evidence of compliance with the IFA Standard Practices. Referencesare made in the checklist to applicable sections of the IFA Standard Practices.As the nature and specific details of IFA engagements may differ as well as thesteps taken in completing such engagements, portions of this checklist may not berelevant or applicable to a particular matter. Those conducting IFA engagementsare encouraged to utilize this checklist, amended as may be necessary, to reflect thespecifics of the engagement.The checklist is prepared in three parts:Part A Relevant to all engagementsPart B Engagement specific IFA Standard PracticesPart C IFA Standard Practices applicable to written reports with theexpectation of expert testimony.IFA – PA-2 File Completion Checklist 3/8

Part A: General Relevant to all EngagementsThis section should be completed by the individual primarily responsible for the engagement.1. Engagement Acceptance(See 200 Engagement Acceptance)Engagement documentationa. There is documentation of independence considerationsand their resolution. Where relevant, reference is providedto the conflict check and/or independence concerns.b. Terms of the engagement have been documented. If anengagement letter was not obtained, the reasons for notobtaining an engagement letter have been documented andcopies of contracts and/or documentation of the key termsof the engagement have been provided. Refer to PracticeAid 1 (PA-1) “Engagement Letters”.c. Staffing considerations as identified in 200.04 (expertise,competencies, resources and time to perform theengagement) for key components are documented(if included in the engagement letter this could be byreference).d. Consideration was given to the ability to complete theengagement, as identified in 200.06, including constraints inaccordance with professional standards and regulatory andlegal requirements.REFERENCESIGNOFF(date andinitials)2. Planning and Supervision(See 300 Planning and Scope of Work)REFERENCESIGNOFF(date andinitials)a. Planning considerations including objectives, circumstances,context, scope of work and any limitations thereto, staffrequirements and the nature and timing of reportingrequirements have been documented.b. The nature, scope, direction and procedures of the engagement,and any significant changes thereto have beendocumented.c. All members of the engagement team have been madeaware of the IFA Standard Practices applicable to theirroles. (See 100.18)d. A partner, or equivalent, will approve planning, prior tosignificant execution.Partner or equivalentSignature ____________________________________e. There was appropriate supervision and review of the workof assistants, including agents or subcontractors.Partner or equivalentSignature ____________________________________4/8 IFA – PA-2 File Completion Checklist

3. Communications(See 500 File Documentation)a. All correspondence via letters and fax is either in the file orthere is reference to its electronic link.b. All substantive e-mails are in the file or there is an electronicreference. (E-mails relating to administrative matters are notconsidered substantive.)c. Notes of interviews, meetings and significant discussionshave been made and are in the working paper file.REFERENCESIGNOFF(date andinitials)4. Information Collection & Analysis(See 400 Information Collection & Analysis)a. There is a record of all documents and other materialrequested and those received from the parties includingorigin, possession and disposition. For electronicdocuments and hardware please refer to footnote 7 to400.06. Where documentation requested is not received,the reasons for the request, efforts made to obtain it andthe reasons why it was not obtained is documented.b. Where there have been any restrictions on the nature, scopeand source of relevant information and documentationdeemed necessary for the engagement, the reasons forsuch restriction and the impact on the engagement aredocumented.c. All relevant information has been identified, analyzed,assessed and compared; substance over form has beenconsidered; and appropriate testing of hypotheses relativeto the issues undertaken.d. The collection and analysis of information reflects aninvestigative mindset. See 400.01 and the examples in100.14.e. There are copies of and/or references to all documents usedand relied on, including research sources (See 500.01(a)).Signoff by primary file preparerSignature ____________________________________REFERENCESIGNOFF(date andinitials)IFA – PA-2 File Completion Checklist 5/8

Part B: Engagement Specific –To be Completed for all EngagementsThis section should be completed by the individual primarily responsible for the engagement.For limited scope engagements some questions might not be applicable.Information Collection & Analysis(See 400 Information Collection & Analysis)1. Research and Data(See also Part A re: sources)a. Reliance on the work of others (See 400.14-.16) isdocumented, including:• The nature and level of intended reliance• The understanding between the IFA practitioner andothers, including experts, as to roles and responsibilities• The evaluation by the accountant of the expertise,independence, objectivity and report or other informationrelied on.REFERENCESIGNOFF(date andinitials)2. Reasonable Assumptions (See 400.10-.11)a. There is documentation of significant estimates andassumptions including the reason(s) why an assumption(estimate) is required; alternatives considered and anevaluation of the reasonableness and consistency ofassumptions used. A sensitivity analysis may be relevant.3. Conflicting Information & Alternative Theories(See 400.12-.13)a. All information received has been reviewed and theIFA practitioner has considered relevance, reliability,reasonableness and completeness and consistency with otherknown engagement information. (See also 400.01 re thepossibility of information being biased, false, unreliableand/or incomplete.)b. Where alternative theories or engagement methodologiesare identified in the course of the engagement they aredocumented including an evaluation of their impact on theconduct of the engagement and the reason(s) for selectingfrom those alternatives.4. File Documentation (See 500 File Documentation and Part A)a. Highlights Memo – For all significant decisions in whichprofessional judgment was exercised, provide a descriptionof the issue, the considerations and the logic in reaching theconclusion or a reference to the working paper where thematter is discussed. (See 500.01(i))In my opinion, the working papers document the work and/ormatters that were relevant in reaching findings, opinions and/or conclusions in the report.Signature ____________________________________6/8 IFA – PA-2 File Completion Checklist

Information Collection & Analysis(See 400 Information Collection & Analysis)5. Reporting (See 600 Reporting)For each report issued to the client there shall be a signoff asrequired in Part c.a. For oral reports, there is documentation of their purpose,scope and general content.b. A copy of all interim, draft and final reports issued to theclient or the client’s representative have been retained on file.Where an interim or draft report is not retained on file,the reasons for not retaining it are documented. (Internaliterations of a report prepared as an engagement evolvesbut not issued to the client or client’s representative are notconsidered drafts for the purpose of this checklist.)c. In my opinion, the report presents the findings andconclusions in an objective and unbiased manner.Signature ____________________________________d. The report includes the following (See 600.08):REFERENCESIGNOFF(date andinitials)i. The names and professional designations of the IFApractitioners and/or the firm responsible for the report.ii. Who retained the IFA practitioner and to whom thereport is directed.iii. The date of the report, which should be the last datewhen conclusions were reached concerning the report.iv. The effective date of the findings and conclusions, ifdifferent from the date of the report.v. The objectives and circumstances of the IFAengagement and the purpose for which the report isbeing prepared.vi.vii.Sufficient information to enable the user to relate thefindings and conclusions to the supporting analyses,information and documents, including sources ofinformation relied on; reliance on the work of others;techniques and procedures, including supportingrationale for their selection; underlying assumptionswith reasons for reliance thereon; and definitions andinterpretations.Any restrictions on the use of the report.viii. Any scope or other limitations affecting the findings andconclusions.e. The following special reporting circumstances have beenaddressed/OR are not applicable:• Independence issues• Multiple approaches and ranges of values• Scope limitations.IFA – PA-2 File Completion Checklist 7/8

Part C: For Engagements that are Completed with the Issuanceof a Final ReportFILE/REPORT REVIEWI have reviewed the working paper file and report and in my opinion the file supports the findings,opinions and conclusions expressed in the report, and both the conduct of the engagement andthe report are in compliance with the IFA Standard Practices.Signature _____________________________________ Date _____________________________FILE REVIEW – 2 nd PARTNER, OR EQUIVALENT (OPTIONAL)I have reviewed the report and in my opinion the report supports the findings, opinions andconclusions expressed therein and meets the Standard Practices for Investigative and ForensicAccounting Engagements.CLERICAL/REFERENCE REVIEWSignature _____________________________________ Date _____________________________8/8 IFA – PA-2 File Completion Checklist

Practice Aid 2: Engagement ChecklistNotes: