Client Substantiation File: Introduction

Title: Client Substantiation File: Introduction

Hello, I am Stuart Cormack and I’m the Methodology Manager in the Professional Practices Group at Audit New Zealand. Today I’m going to introduce our Client Substantiation File. This is a tool we have developed to help you, when you are preparing the information we need to do your audit.  

There is a link on the front page of our website so that you can access it easily. 

We have developed this so that when your auditors start your audit the information you give us is in the way we need it – in the right format and with the right details. By being better prepared there should be fewer queries and questions from your audit team.

This will allow your auditor to focus on performing the audit procedures and other important issues related to your audit. This will help the audit to progress smoothly and help you to get the maximum value out of your audit.

There are various topics in the client substantiation file These include fraud, journals, going concern assessment, related parties, impairments, valuations, and using the work of an expert. There is some background information that explains each topic in further detail and also explains what steps your auditor needs to take when completing their work on each topic.

Depending on the topic there are example information requests, checklists, questionnaires, and templates which I will explain in further detail in the next videos.

We hope you find our client substantiation file useful and encourage you to go watch the other videos to get details on how each section works and how it can help you get prepared and help your audit go more smoothly.   

Title: Visit auditnz.govt.nz to find out more about the Client Substantiation File.