Practice and Prepare Real Client Review Engagement

1. Setup a New Caseware File 

2. Import the Trial Balance Provided

3. Assign Leadsheets

ALIBABA INDUSTRIES INC. is a long time client of your CPA Firm. You a junior accountant on this engagement.

You made the following notes based on meeting with the partner and review of the prior year file

• Year End: March 31, 2018
  
• Accounting Framework: ASPE GAAP
  
• Deadline to complete the file is July 2018
  
• All the client acceptance and continuance procedures have been completed by the partner.
• There are no new or emerging risks that would impact the decision to continue this engagement.
• Your firm has the appropriate level of expertise and experience to complete this engagement.
• The partner is fully satisfied that there are no independence prohibitions that would preclude the firm from performing the engagement. 
• The partner confirmed there are no independence threats
  

 The Partner has completed the initial assessment of the risk and concluded that the overall risk of is Low

• Long history with client; 
• Management is very competent and skilled; 
• The owner/manager is involved in daily activities;
  
• There are no significant issues from the prior year review engagements; 
• The Partner has a good understanding of corporate activities and there are no material or significant unmitigated engagement risk factors.

Prepare R410 - Existing Engagement Continuance Checklist

Prepare R420 - Materiality Checklist

Prepare a Checklist - R510 Understanding the nature of the entity

Per discussion with the Partner here is overall Engagement Strategy (overall approach, specific inquiries/procedures, areas to consider, etc.).

• Overall Engagement Risk is Low
  
• Materiality is set at 2% of Revenues
  
• Approach: primarily substantive using inquiry, discussion, and analytical review procedures
  
• Important FS Items: Bank, AR, Inventory, Sales, and Cost of goods sold
  

Prepare a Checklist - R520 Review engagement plan

Per discussions with the Partner, there is no going concern risk.

Per review of the information and inquiry with the management, there was no significant/unusual transaction with the related party (Holding Company) during the year except for management fee, and other activities in the normal course of business.

The client has provided us the details of the manual, complex and unusual journal entries. The client has access to the accounting system and any entries made by bookkeeper are reviewed by management