Earlier this year the AICPA released Version 2.0 of both the ATB(ATB2) and the APG(APG2).
APG2 allows the team to prepare its own planning checklist or to use one provided through the AICPA.
The AICPA planning checklist of APG2 includes items to consider under the following broad headings:
For illustrative purposes, the first page of the AICPA planning check list produced by APG2 is provided in Figure 1.
APG2 can assist in satisfying the requirements of SAS 55, Consideration of the Internal Control Structure in a Financial Statement Audit.
The planning checklist acts as a control to ensure that all the internal control structure bases have been touched, and it should be the first of the APG2 tools to the referred to.
Let it suffice to say at this point, APG2 has a suggested internal control section.
* After completing the questionnaire, return to the internal control audit program part of APG2 and design audit steps based upon the decision of the auditor to either: 1) assess control risk at the maximum; or 2) reduce such risk assessment.
Thus, these two components of APG2 can help the auditor document that the new standard has been complied with.
As was seen in the earlier discussion on internal control, APG2 can help in the design of audit programs from scratch or provide suggested steps for modification for particular conditions at the client.
APG2 was designed to start with the five assertions: