The Trust set itself a challenging internal timetable to meet the requirements of faster close for the 2008/09 financial statements. Through a series of regular meetings between the Trust and the auditors, this timetable was accommodated in the audit planning arrangements.
The interim audit took place in January 2009 when the Trust had applied the Month 9 hard close which helped to progress some aspects of the financial statements audit at an early stage. Following this, the auditors and the Trust held a planning meeting and agreed the timetable for the financial statements audit. This was to commence on the 27 April, at the earliest practical start date following the submission of the draft accounts on 23 April.
To achieve this, it was agreed that a complete set of working papers for the final audit would be provided electronically and in full on day one of the audit. In addition to this, the Trust agreed to manage staff holidays to keep disruption to a minimum during the audit. Where absences were unavoidable, the relevant audit work would be scheduled accordingly.
The auditors subsequently provided a detailed audit arrangements letter, setting out the working paper requirements. In addition, regular contact was kept with the Trust on emerging issues and proposed accounting treatments; working on the principle that there would be 'no surprises' when the audit team arrived on site. The Trust provided the auditors with a set of draft financial statements by the agreed deadline. The draft was largely complete to the extent that revisions required as a result of the audit were kept to a minimum.
The working papers were provided at the start of the audit. These were in electronic format, primarily in Microsoft Word or Excel, and found to be of a good standard. The Trust had set up a repository for the working papers on a shared drive within the Trust's network. This used standard Microsoft Windows desktop folders arranged in a cascade which broadly matched sub-headings set out in the audit arrangements letter (for example, E:\Audit 2008-09\Balance Sheet\Fixed Assets\Impairment Calculation.xls).
This simple system made it easy for the auditor to navigate and find information on specific areas of the accounts. Officers within the finance team had populated the relevant folders for their area of responsibility by accessing the shared drive. This process was closely monitored by the Head of Financial Control to ensure compliance.
Several dedicated PCs were set up for the audit team and all members of the team were given username access to the Trust's system. This greatly reduced the time spent locating and collating evidence to support the audit process. The auditors posted an 'outstanding queries' list on the shared drive at the end of each day. This made it easy for both the client and the auditor to keep track of further information requested.
Regular progress meetings between the auditors and the Head of Financial Control were held, which facilitated prompt action where additional information on the list had not been forthcoming. The audit closure meeting for the fieldwork was held on 15 May.
This well managed process contributed to the successful sign off of the Trust's financial statements on 27 May; two weeks in advance of 12 June deadline.