ARMKBAModules

Accounting Research Manager®
Knowledge-Based Audits™ Modules
Industry-specific Knowledge-Based Audit solutions for nonpublic entities

Accounting Research Manager Knowledge-Based Audits modules utilize Knowledge-Based Audit methodology to perform more effective and efficient financial statement audits of nonpublic businesses, governmental entities and other organizations.

These audit solutions focus on a comprehensive set of industries to help you mitigate risk and achieve more effective GAAS compliance for specific industries. They help ensure the accuracy of your audits, improve efficiency and streamline your workflow.

Knowledge-Based Audits provide the resources of the most comprehensive financial reporting online database — Accounting Research Manager (ARM) — plus the industry-specific guidance you need to perform accurate and efficient financial audits.

Knowledge-Based Audits modules for specific industries include:

Knowledge-Based Audits of Construction Companies and Contractors
Knowledge-Based Audits of Employee Benefit Plans
Knowledge-Based Audits of Financial Institutions
Knowledge-Based Audits of Governmental Entities
Knowledge-Based Audits of Health Care Entities
Knowledge-Based Audits of Not-for-Profit Entities
Knowledge-Based Audits of Real Estate Entities
Knowledge-Based Single Audits

The modules are available for any ARM Audit Library.

Formats available/Update frequency

Accounting Research Manager
Updated daily

More Accurate Risk Assessments
The Knowledge-Based Audit (KBA) uses a risk-focused methodology that emphasizes using knowledge of each entity to make risk assessments in connection with a financial statement audit.

The CCH KBA methodology:

Facilitates compliance with GAAS
Encourages more efficient audits through customized audit programs
Helps identify and focus on risks

The more accurately you can assess an entity’s risks of material misstatement, the more assurance you have that the procedures performed in response to the risk assessments will detect these misstatements. Each KBA module enhances your ability to assess risk by helping you:

Obtain an understanding of the entity and its environment, including its internal control, sufficient to accurately assess the risks of material misstatement
Design and perform audit procedures that are responsive to the risks of material misstatement

A Comprehensive Audit Methodology
A wide variety of risk assessment forms and practice aids guide you through the nine critical KBA processes:

Pre-Engagement Procedures
Risk Assessment Procedures: Obtaining an Understanding of the Entity and Its Environment
Risk Assessment Procedures: Evaluating the Design of Internal Controls
Assessing the Risks of Material Misstatement
Performing Audit Procedures in Response to Assessed Risks
Performing Audit Procedures: Tests of the Operating Effectiveness of Internal Controls
Performing Audit Procedures: Substantive Tests
Evaluating, Concluding, and Reporting Procedures
Audit Documentation Requirements

Enhanced Information Flow
The Knowledge-Based Audit methodology developed by CCH focuses on information flow rather than on document flow. This improves communication between engagement members and supports ongoing evaluation of procedures, so you’re better able to make informed risk assessments using your own professional judgment and expertise.

The results from each audit stage feed into a Communications Hub that enables all audit team members to easily view summaries of the significant matters, risks and findings discovered in the audit. This ensures that important information is not overlooked or hidden in the details of numerous checklists and forms.

Move to Paperless Audits
Knowledge-Based Audits modules are also available as Knowledge Tools add-ons to ProSystem fx® Engagement — the industry’s most widely used paperless workpaper management and trial balance tool. Engagement provides additional integrated features that facilitate sign-off and tailoring of program steps. It also provides context sensitive Practice Points, example workpapers and explanations, and optional workpapers that can automatically be inserted into the audit binder if needed. For more information, visit CCHGroup.com/KnowledgeTools.