Module 3 - Permanent File including document handling (PCAS)

Points forward memo

This can be accessed from the Acceptance and appointment folder in the Main index. On balance forward this document gets carried forward to the New Year.

Permanent file (including adding and importing documents)

 Select 'Permanent File records from understanding the client's business folder of the Main Index

Please note a distinction will need to be made between what goes into the permanent file, background information and key business processes and therefore buttons have been provided on the permanent file data dialog to go directly to background information and key business processes.   It is important to decide at this stage the easiest way of getting information into the system

For example, names of directors and secretary could be keyed into the area provided on above dialog screen or by selecting Background information from the Background folder in the Main index. To add documents into directories either drag and drop from a Windows Explorer folder or select Add

Add reference and title and then either add a document from templates by selecting the ‘hand’ option next to template field or select radio button type.  If select import radio button can import any document from network – e.g. PDF Documents, scanned documents, Microsoft Word and Excel documents etc.    Please note option to keep document on balance forward.

This above is a tabbed dialog which contains all the templates that are available to you. The three tabs are provided to allow the lists to be broken down into more manageable sections and to make it easier to find the template that you are after. When the dialog is first displayed the Working papers tab will be selected, to select one of the lists click on the tab name. Each entry is shown with an icon identifying the type of document (see below). You can restrict the contents of the list to documents of a specific type by selecting one of the radio buttons in the Show template group. You can also jump to a template in the list displayed by typing the first few letters of its code in the Template code edit box.

Opening Documents

There is a document management system that runs in the background. This means that when you open a document, the system needs you to check out the document.

Simply click 'Yes'.

Once you have finished with your document (reading or editing it), you can clise it, but you then need to check the document back into the system, so other users can access it. Either right click on the document to choose the ‘check in’ option, or click on the button at the bottom of the screen.

Background Information

To access this, open the Understanding the client’s business folder in the Main index

A master pack may include specific background information areas in the main file index and a template may be associated with it to guide you through the type of information that it is anticipated that you will record for the area.   For example, the following shows the areas included in our Master packs (other methodologies will show slightly different lists).  

Some of the above forms show information which could also be keyed into areas in the permanent file dialog (e.g. shareholders, directors, key staff etc.) so users must be alert to duplication of information.

There are a number of different ways off adding or linking to background information (e.g. keying text into space provided, cutting and pasting into space provided, linking to existing document by selecting detailed documentation button, or simply referring to data in a hardcopy document).   A crucial point is to ensure that whatever method is chosen background information effort is not duplicated.

If you have added a detailed document, an icon appears on the Detailed document column. 

There is also the option within background information to add specific audit risks and key controls relating to the background information (see background information dialog above).  These routines will be covered in the key business processes section below. If you have linked specific audit risks to background information then an icon will appear in the Risk flag column

Key Business Processes (system notes)

• This is where to add system notes.  Identified audit risks and key controls relating to the business processes can also be added here.
• Recording of key controls is compulsory under ISA.
• When looking at key business processes really need to decide whether you record an audit risk against it if it looks bad or record a key control if it looks good. 

To access, go to Main index and open sub folder Key business processes under the folder Understanding the client’s business.

The designer of the master pack can add key business processes to the file index. It is also possible for you to add further areas that are relevant to the client from a list of processes recorded. On selecting a key business process from the index, you are presented with the following in a tab:

From this you can add, edit or delete a key component to the process. You can also change the order of the items listed.

Up to three icons may be shown in the flags column:

Indicating that the item has an identified audit risk associated with it.

  Indicating that the item has a process flow recorded in respect of the component.

 Indicating that you have associated an external document with the component.

External Document

As an alternative to using the internal facilities to record the process flow, you may have used another program to record the details, e.g. created a flowchart in Excel or a dedicated flow charting program.

CCH Audit Automation allows you to import any document that you have created, provided that the document is capable of being opened by double clicking on it in Windows Explorer.

Importing a document

To import a document, click on the External document button in the Key business process dialog. A pop up menu will appear showing the following options:

• Open document
• Import document
• Delete document

Select Import document and the Windows Open dialog will appear to allow you to find and select the file you wish to associate with the component. Select the file and click Open.

The text on the External document button will turn from blue to black and the system will copy the document to the client’s data storage within CCH Audit Automation. Note that the file is copied and it is not a link being created to the original document. This means that if you edit the file from within CCH Audit Automation, you are not editing the original document and that the document will be archived and moved with the rest of the CCH Audit Automation data. It also means that you will have a unique copy of the document stored with each year’s audit file.

Opening a document

To open a document, select External document and then Open document from the pop up menu. CCH Audit Automation will launch the program that was originally used to create the document and display it for review/edit.

General Planning Memorandum

This can be accessed from the Planning folder of the Main index.

Depending on the audit methodology this may contain the audit approach, background information etc.  Like the points forward memo this document is copied to the current year file on balance forward where it can be edited in the normal way.