PEM News

Quick Facts:

Most recent PEM update	41	December 2008
Target for next PEM update	42	July 2009
Major rewrite of PEM to incorporate CASs		December 2009

Content of PEM update 42:
Minor editorial changes to forms and content.
New form A000 details the PEM forms recommended for completion on every audit file.
Not for profit financial disclosure requirements contained in S4400, S4430 and S4470, have been incorporated into the not for profit forms A805 NFP, AC100 NFP, AMM100 NFP and ATT100 NFP

PEM #42 Highlights letter

The Professional engagement manual (PEM) is designed to assist practitioners with the implementation of professional standards with respect to audit, review and compilation engagements.

New Condensed Forms
New alternative (condensed) audit forms have been developed for smaller audits. These forms provide some basic guidance but are loosely structured so that they provide a lot of white space for users to decide exactly what needs to be documented. These forms avoid having to answer ‘not applicable’ to certain questions and shorten the overall length of the form.

NEW Not-for-profit forms
New forms have been developed to address the specific risks and audit requirements for a Not-for-Profit (NFP) entity. The same form numbers as for the regular audit have been used but with "NFP" in front of the name. Some additional new ‘condensed’ NFP forms have also been developed.

Streamlined versions of existing Audit forms
A number of the planning and risk assessment forms have been revised to provide more guidance on what is required on the form and to make the forms more user friendly.