Introducing
C-PEM
STUART HARTLEY FCA CA.IT
SHARTLEY@FOCUSROI.COM
Copyright FocusROI 2014
 Volume 1 Core concepts
◦ Audits, reviews and compilations
 Volume 2 Practical Guidance
Includes 2 integrated case studies
◦ Part A
Audits
◦ Part B
Reviews
◦ Part C
Compilations
◦ Part D
Practice Aids
(forms etc. on a CD)
Three Audit Phases
Perform
risk assessment
procedures
Implement
responses
to assessed RMM
3
Reporting
Plan the audit
2.
Risk Response
Risk Assessment
1.
Evaluate the audit
evidence obtained
Prepare the
auditor’s report
Risk Assessment
What are the RMM 1 in the F/S 2?
1. Perform
preliminary
activities
2. Determine
materiality
3 . Plan R APs
4-6. Perform RAPs:
Pervasive
Risks
Controls
7. Conclude:
Assessed risks
at F/S level
Entity-Specific
Risks
Controls
Transactional
Risks
14 Audit
Steps
Controls
Assessed risks at
assertion level
Risk Response
Did material misstatements occur?
8. Design appropriate
audit responses:
Assessed risks
at F/S 2 level
Overall
responses
Assessed risks at
assertion level
Further audit
procedures
9. Finalize audit plans
10. Perform
planned
responses
11. Evaluate evidence
obtained
Communicate audit plan to
management/ TCWG
Reporting
Evaluating/communicating findings, and forming an opinion
12. Communicate
(findings, misstatements and
significant control deficiencies)
13. Complete the audit file
(file and F/S reviews, final An Rev,
subsequent events and approvals)
14. Form an opinion
(appropriately word
and date auditor’s report)
The C•PEM Case Studies
C•PEM Volume 2
Business
Sales
Staff
Completed
Documentation
Provided
Case Study A?
Cambridge Furniture Inc.
Furniture Production
$1.5 million
8
Standard C•PEM
Forms
Case Study B?
Kennedy & Co.
Furniture Parts
$ 230,000
2 + owner
Structured Memos
and Condensed
C•PEM forms
Design of C•PEM Forms
FAQ
Responses
Purpose?
Structure for documenting work performed.
Assistance in complying with CAS requirements
Training required?
Yes
Ease of use?
Forms have objectives, instructions and consider
points to facilitate ease of use
Why data bases
instead of checklists?
Enables quick and consistent assessments of risk
How easy to review?
The databases (such as risk registers) are
structured to facilitate file review
What are C•PEM
“worksheets ”?
Use ONLY when applicable
Forms are not a substitute for reading CASs
Enables re-use of forms (cost saving) by updating
the data in subsequent years
C-PEM Audit Documentation
Standard
C•PEM Forms
Objectives
Instructions
CAS requirements
Consider points
Comprehensive
Condensed
C•PEM Forms
Objectives
Summarized
CAS requirements
Structured
Memos to File
Custom
FocusROI Services
 In house and web based Training
 Quality Control Monitoring
 Small group Coaching
www.focusroi.com
416 594 0005
info@focusroi.com
Please contact us
for further
information
info@focusROI.com
416 594 0005