Performing a Rollforward with Data

Considerations

1.Audit considerations-when performing substantive audit procedures at interim date reduces the
workload connected to our year-end audits. Evidence pbtained using automated techniques provides, in
general, higher quality audit evidence and may allow us to reduce the extent of the procedures
performed.

2. Data considerations

2 approach of extracting data

1. Non-incremental-extracting the full current year data + subsequent data

2.Incremental approach-extracting data since the date the last extraction was performed.

3.Planning considerations-It is important to plan our data extractions to ensure that right data be given
at right time. We consider the following:

a.Understanding any issues that occurred during the prior year data extractions

b.Agreeing on the date for the extraction with client

c.Arranging for data transformation and tool preparation

d.How to handle any late adjustments

Audit procedures-audit procedures will vary depending upon our CRA.

When CRA is minimal or low:

1.We obtain audit evidence as to whter any significant changes to the control environments and whter
controls have continued to operating during the rollforward period.

2.Use automated tecqnique to update the lead schedules and compare amounts at the balance sheet vs
interim and with the prior period (to identify and investigate unusual and unexpected changes or the
lack of the expected changes)

3.Compare monthly activity in the account with that during the rollforward period and with the
corresponding prior period.

4Use automated tecqniques to identify manual or nonroutine journlas affecting the account

5Cut off procedures at year-end date

When CRA is moderate or high:

1We design audit procedures that recognize that the level of audit evidence required from our
substantive increases as our risk assessment increases.
2. Use automated tecqnique to update the lead schedules and compare amounts at the balance sheet vs
interim and with the prior period (to identify and investigate unusual and unexpected changes or the
lack of the expected changes)

3.Reperform substantive procedures using automated techniques at interim using new data for the
rollforward period. As these rollforward analytical procedures, the evidence required can be less
persuasive. Therefore, expectations we set can be less precise and the acceptable variance threshold
from our expectation may be wider.

4Use automated tecqniques to identify manual or nonroutine journlas affecting the account

5Cut off procedures at year-end date

Extent

The desired level of evidence required in the rollforward period is less persuasive than at yearend. Since
it is just one piece of evidence we obtain over the account balance as a whole. Therefore, the work
performed at year-end is usually less extensive than the work performed at interim date, unless new
facts and circumstances have been identified that changes our risk assessment.

Documentation

It is important that the audit workpapers tell the story of the procedures we have performed, the
evidence we have obtained, and the conclusions we have reached.
Introduction to hxPSPs

Various hsPSP programs. These includes:

1. Revenue and Trade Receivables

2.Fixed Assets

3.Payroll

4.Trade payables and Related expenses

5,Inventory and Cost of Goods Sold

Each program is structured in a consistent manner to include procedures from risk assessment to
execution.

Each program includes data analytical procedures designed to address the risks that are unique to that
program; these risks and procedures should be customized by the audit team to fit their facts and
circumstances.

Documentation of hxPSPs

In summary, the hxPSP standard workpapers provide a consistent documentation approach for telling a
story of your data driven audit.
Data and analytics delivery process:

The process is divided into 3 categories:

1.Data delivery

a.To plan; Which EY Helix Analyzers to be used and/or addtiions of subledger analyzers. Which business
entities data we need to execute our audit strategy. We only capture data which is necessary to the
audit plan.

Important dates that influence timing and extent of data extraction:

The start date of the audit

Timing of interim audit work

The period-end date to be audited and the timing of execution audit work

Identify key client stakeholders. Need to obtain approval for capturing data.

Individual needed in the planning phase.

b.request of data from client

Formal data request which clearly outlines the timing, scope and extraction method.

c.extraction. It is key that we perform the correct validations before transforming the data or
transferring the data to the Analytics Delivery Center. These validations include :a.Completeness checks
to ensure all tables and fields are present in the dataset. Making sure that control reports ae extracted
and accurate. Completing a data extraction memo.

d.Final step is transfer from client system to EY.

2.Analytics delivery

1.Transform-transform the data by loading the raw data into a common structure required by the EY
Helix Analyzers.

2.Customize and Process-preparing the client data so its audit relevant. For example, mapping the chart
of account for the trial balance to the financial statements.

3.Evaluate-we confirm the analytics operate correctly and document valiudations performed in the
Analytics Delivery Memo
4.Deliver-Once the steps in the Analytics delivery sections is complete, The analytics delivery memo is
finalized(by the audit engagement team or ADS) and retained as audit evidence.

, and

3.The audit

Perform audit and share.

Repeatable-EY Helix Analyzers will be used at different points in the year and in successive audits, so
data needs to be captured several times.

Scalable-If there is a need or a willingness to expand the use of analytics, you can use the same process
or data capture methods.
Sharing data analytics insights with clients

Data-driven insights are to be delivered to our client through the ff. steps:

1.Collect insights from data-driven audit procedures performed throughout the audit. It is important to
collect potential insights throughout the audit so they are not forgotten or lost before being presented
to the client.

2.organize insights into compelling stories. Organize insights into cohesive themes.

3.Customize your audience and customize key message to their level of understanding and expectations.
Select stories that will be most compelling to your clients to further customize and share. Sharing the
complete sotry will increase the impact of the insight and allow your audience to take immediate action.

4.Use visualization that are easy to understand and can stand on their own to directly support the story.
It is important to choose a visualization that will effectively convey the story you intend to share.

5.Develop a simple and powerful narrative to accompany the visualizations. Use language or terms that
are well known to your audience and will be instantly recognizable.

Project Managements Pre-Work

Five key areas where our processes and procedures can be enhanced through effective project
management practices, specifically Client Continuance and PACE; Engagement Economics & Budget;
Scheduling (ARMS/Retain); EY Canvas and EY Canvas Client Portal.

Project Management. It is the process of scoping, planning, staffing, organizing, directing and monitoring
the completion of tasks to efficiently achieve project outcomes or objectives during the audit.

Alongside good project management behavior, we also need to focus on:

1.Timely preparation of our audit work, including timely reviews

2.Executive involvement early on and often throughout the audit cycle

3.Open and direct team communication, including real-time conversations and reviews

4.Clear and realistic purpose, expectations, timeline

5.Appropriate team resources

6.Team collaboration and personal accountability

PSP:

1.Agree SL/GL

2.Unusual item

3.Cut-off

4.Search of unrecorded payables

OSP:

1.Review of year-end adjustments

2.Review of prior period trade payables

3.Analysis of day’s purchase in trade payable

4.Review of supplier base

5.Review of cash disbursement

6.Confirmation of trades payable

7.Review of purchases transations