Part five of my journey through the peer review process.
Since submitting the list of engagements, which I discussed last post, I got back a list of engagements my reviewer wants to look at. He will make an additional surprise selection when he arrives.
He will need a few more things before field work. I sent him a copy of the financial statements for each of the engagements he selected.
For the audits, I also filled out a profile sheet. You can see the nonprofit form here, assuming you are an AICPA member and can login to their site.
I filled out page 2, which is basic background information on the engagement and skipped pages 3 & 4 since those are for A-133 engagements. I don’t do any of those audits.
Then I gave some brief background on significant estimates, fraud risks and other significant risks on pages 5 & 6. For each of those areas I described what items were present on the engagement (i.e. most likely way for material fraud to occur), the audit response to that issue, and where the work papers document the response.
The remaining pages are used by the reviewer to document the review. Hopefully, your reviewer will extract the pages you need and just send you those. If not, don’t worry about the other 43 pages. That’s his or her problem.
The profile sheet is a fillable PDF form. If you haven’t worked with those before, they’re pretty handy. Takes a little while to get used to them, but they are very helpful.
So that you have some basic idea of what time is involved, it took me just over an hour to pull together the reports and fill out two profile sheets. Adjust my time as you wish to develop an expectation for how long it will take you.
So, I sent the profile sheets and copies of financials to my reviewer tonight. I think it at this point, all I need to do is wait for him to arrive.