What is AS5 in audit?
What is PCAOB in financial reporting?
Why is a query run in database X?
Why is it important to have controls over IPE?
How many components are in an IPE?
Why is IPE used in SOX?
What is the logic of the report?
See 4 more
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What does IPE mean in auditing?
Information provided by the entityWhat Is an IPE Audit and Why Must We Address It? Information provided by the entity (IPE) is any information that is produced by the company and provided as audit evidence, whether it be for your controls testing or substantive procedures performed by external audit.
What is the IPE process?
IPE is any information that is produced internally by a company being audited and provided as audit evidence, whether for use in the execution of internal controls or for substantive audit procedures performed by an external auditor.
What is an example of IPE?
An example of IPE audit evidence could be: Manually generated IPE: A user takes a screenshot within a tool showing the list of users that have access to system X. This screenshot is then manually generated and provided as evidence.
How do we test IPE?
developing your IPE testing approach:Create an IPE inventory per Category. By creating a listing of all SOX relevant IPEs that support key controls, you will have visibility over the full scope of IPE testing required. ... Categorise your IPE. ... Determine your testing approach. ... Maintain your IPE process.
What is the purpose of IPE?
IPE helps develop and promote interprofessional thinking and acting; promotes beneficial information and knowledge exchange and mutual understanding; and ensures the acquisition of shared knowledge.
How many types of IPE are there?
Ipe is one of the hardest species of wood on earth. There are over 30 subspecies of Ipe that grow from Central America through South America.
What does the word IPE mean?
Noun. ipe (countable and uncountable, plural ipes) A type of wood of the genus Tabebuia, similar to teak, used for outdoor decking and furniture.
What is interim audit testing?
An interim audit involves preliminary audit work that is conducted prior to the fiscal year-end of a client. The interim audit tasks are conducted in order to compress the period needed to complete the final audit. Doing so benefits the client, which can issue its audited financial statements sooner.
What are IPE activities?
IPE activities provide students with opportunities to familiarise themselves with the different language and tasks of each others' professions. Concurrently, this process contributes to the development of students' own professional identity, and their understanding of different professional responsibilities [29].
Is bank statement an IPE?
IPE used in the performance of controls is, by definition, internal information. Therefore, external information used as audit evidence (e.g., bank statements, industry pricing data and other sources of information used in the performance of controls) is not subject to the requirements of paragraph 9 of CAS 500.
What are the IPE risks?
When assessing IPE, pertinent risks to be addressed include: Data processed by the application (source data where IPE is produced) is not complete or accurate. Data extracted from the application (defined parameters or range to execute and obtain IPE results) is not complete or accurate.
What is IPE source data?
– Source Data: The information from which the IPE is created. This may include data maintained in the IT system (e.g., within an application system or database) or external to the system (e.g., data maintained in an Excel spreadsheet or manually maintained), which may or may not be subject to general IT controls.
What is an IPE in construction?
Ipe hardwood is wood that originates in Brazilian forests and is known for its incredible hardness. You may have seen Ipe wood compared to the hardness of nails. Saying that it is as “hard as nails” isn't just something catchy to write, it's true which is why Ipe wood is often pre-drilled.
What does IPE stand for in mental health?
If you are seeking compensation for a mental disability claim like post-traumatic stress disorder, you may be required to undergo what's known as an independent psychological evaluation (IPE).
What is IPE project?
The inter-institutional, interprofessional education (IPE) student project, hosted by the Meharry-Vanderbilt Alliance, provides an opportunity for students from various health professions programs in the Nashville area to collaborate with community partners in a real-world setting.
What is an IPE inventory?
Information “Produced or Provided” by the Entity (IPE) is evidence for the audit that is generated by the entity and used by the auditors to test a control.
What Is The Difference Between PBC And IPE? - Your IT Career
What is PBC? PBC stands for Provided By Client.. PBC documents are typically documents that have been expressly requested by auditors to support their audit work. This means that the information or evidence has been provided by the client in response to a request by the auditor.
Three Types of IPE and IPE Risks: A Controller’s Guide to SOX ...
Updated February 03, 2022. Information produced by the entity (IPE) is any information that is produced internally by the company being audited and provided as audit evidence, whether for use in the execution of internal controls or for substantive audit procedures performed by an external auditor. In this article, we will discuss the three types of IPE you are most likely to encounter and the ...
Ipe Decking Data Sheet - East Teak
East Coast Donalds, SC Toll Free: 1-800-338-5636 Fax: 1-864-379-2116 East Teak Fine Hardwood Inc. www.eastteak.com West Coast Sultan, WA Toll Free: 1-800-537-3369
Information Produced by the Entity (IPE) Audit & Compliance
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What is AS5 in audit?
AS5 directs the auditor to identify and test the relevant controls when reporting on the effectiveness of ICFR in an integrated audit, which would therefore also include the controls over IPE that a relevant control relies (is dependent) upon.
What is PCAOB in financial reporting?
The PCAOB viewpoint is that when the effectiveness of a relevant control depends on the accuracy and completeness of a report, then the controls that address the accuracy and completeness of the report are in the scope of ICFR (Internal Control Over Financial Reporting).
Why is a query run in database X?
The query was run in database X to provide complete and accurate listing of user records.The query’s logic is to find out users in enterprise which have been terminated and as such have status of “Terminated” in the database.The parameter of the query is looking for terminated users which have been terminated in last 90 days from the date on which query was run.
Why is it important to have controls over IPE?
The importance of having controls over IPE documentation needs to be strongly emphasized and taken care of by organizations. More so when the IPE is the backbone of key controls and data that supports the financial reporting process. For example, organizations need to have a system or monitoring in place that validates that all transactions on the sub-system completely and accurately upload and update the accounting system. The need for this extends to the information which is provided for audit purposes to be used in high volume data analytical procedures.
How many components are in an IPE?
The key components of an documented IPE can be broken down into three components
Why is IPE used in SOX?
The primary reason for this situation is because the obscurity associated with the term itself. To start off the abbreviation can be referred as “Information Provided by Entity” or “Information Produced by Entity”; depending on your auditing company and the person doing the audit either term can be used when referring to IPE.
What is the logic of the report?
The logic of the report will guide the person to only look for terminated users in system. This selection of terminated users from all user listing will be our control logic.
What is IPE in audit?
Information provided by the entity (IPE) is any information that is produced by the company and provided as audit evidence, whether it be for your controls testing or substantive procedures performed by external audit. In some environments, this is also referred to as electronic audit evidence (EAE) or key reports/spreadsheets.
Why Are ITGCs Not Enough?
Ultimately, it depends on how comfortable auditors are with the accuracy and completeness of IPE in a particular company. Most companies still rely on spreadsheets to some extent and reports coming out of systems can be modified by the end user.
How Do We Manage IPE in Our Environment?
A good starting point is to identify all reports and spreadsheets currently being used by business owners for your existing SOX controls. This should give you a good starting population of all your IPE. From here, you should identify any other key financial documents that your company is generating which are critical to financial statements, either directly or indirectly.
What is the name and type of the report that was run?
Identifying the report is imperative because it dictates its risk level, which in turn dictates the level of assurance required. For details on the different types of reports and their corresponding risk rankings, see three types of IPE and IPE risks.
What parameters were used?
Important parameters include the date range and the exclusion or inclusion of certain data. Such parameters indicate what data was pulled from the system and is the starting point of the IPE. If the data being pulled is inaccurate, the reporting and execution of the control has been compromised, and incorrect data yields inaccurate results.
How is the data exported?
Data is typically exported as PDF, Excel, CSV (commas separated values), or text files, each of which has its own characteristics. Although PDF is the least prone to manipulation, it cannot be used easily for further calculations on its own.
Is there supporting documentation?
Such documentation might include a screenshot capturing the export details, or a copy of a report that was rerun to ensure the appropriate data has been included.
Are you able to verify that the data was exported completely and accurately and has not been manipulated or improperly excluded?
If you were able to successfully agree the data to supporting documentation, then you are finished. You have ensured completeness and accuracy over the data used, and the IPE may be relied on.
High risk
An ad hoc query, which is not subject to ITGC, is the riskiest of the three types and is any nonstandard query created to produce information on an as-needed basis. It requires a great level of assurance, because the end user may use any set of parameters while generating a report.
Medium risk
Custom reports are reports produced by the company’s in-house IT team. They are often generated when the business team requires that a certain data set be produced by the company’s enterprise resource planning (ERP) system.
Low risk
Standard or canned reports are reports that come right out of the box. They have been developed by a software company and are included with ERP systems. Canned reports are preformatted and distributed to an entire organization.
What are IPE and IUC?
In order to understand if the SOC reports are addressing IPE and IUC, let’s start with what these terms mean:
What is an IUC / IPE Audit?
There is not an IUC/IPE-specific audit; rather there are procedures performed when testing relevant controls that include test steps developed to understand that the IUC and/or IPE are complete and accurate.
What should the entity consider documenting?
The entity should consider documenting those steps to be memorialized into the IUC population document. The information is then provided to the examination practitioners, if and when questions arise. When the practitioner tests the relevant controls, the entity will likely be asked to provide the steps taken to document the completeness and accuracy of the documents the controls are dependent upon (IUC).
Why is SOX becoming more relevant in the SOC world?
Why, you might ask, is it becoming more relevant in the SOC world? The reason is simple: because when an entity’s SOX control environment has relevant controls that are maintained by a subservice provider, those maintained controls are included in the SOC report that the subservice provider delivers.
Why is IUC important?
It is important that IUC and IPE are complete and accurate when a control is dependent upon them. This is important because otherwise, it can result in a number of inaccuracies related to the control execution.
What is IPE system generated?
IPE that is system generated is reliant on the accuracy and completeness of the source data, the report logic (how the report logic was initially created and what happens when modifications are made to that report logic), and parameters (when the data has set parameters that only display certain relevant pieces).
Why do practitioners need IPE?
The practitioner will also obtain IPE in order to test an entity’s internal controls . IPE is the responsibility of the practitioner (with assistance from the entity) to test and determine appropriate procedures to obtain comfort over the accuracy and completeness of the IPE, as IPE is information that is used to support control testing, not control performers.
Why is PBC important?
This difference is very critical because it helps those reviewing the workpapers to understand how the provided evidence impacted the audit work. That is, it helps explain which documents ...
What is an IPE document?
IPE documents are typically documents that a company or client has created to support their own work. For example, this may include reports that are used to perform controls or system generated reports that are provided to support an audit.
Why use PBC?
Using ‘PBC’ on a document helps to differentiate between the document an auditor created and what the client created/provided.
Do companies need to validate IPE reports?
Companies also need to show that they validate completeness and accuracy of IPE reports used when performing their controls.
What is AS5 in audit?
AS5 directs the auditor to identify and test the relevant controls when reporting on the effectiveness of ICFR in an integrated audit, which would therefore also include the controls over IPE that a relevant control relies (is dependent) upon.
What is PCAOB in financial reporting?
The PCAOB viewpoint is that when the effectiveness of a relevant control depends on the accuracy and completeness of a report, then the controls that address the accuracy and completeness of the report are in the scope of ICFR (Internal Control Over Financial Reporting).
Why is a query run in database X?
The query was run in database X to provide complete and accurate listing of user records.The query’s logic is to find out users in enterprise which have been terminated and as such have status of “Terminated” in the database.The parameter of the query is looking for terminated users which have been terminated in last 90 days from the date on which query was run.
Why is it important to have controls over IPE?
The importance of having controls over IPE documentation needs to be strongly emphasized and taken care of by organizations. More so when the IPE is the backbone of key controls and data that supports the financial reporting process. For example, organizations need to have a system or monitoring in place that validates that all transactions on the sub-system completely and accurately upload and update the accounting system. The need for this extends to the information which is provided for audit purposes to be used in high volume data analytical procedures.
How many components are in an IPE?
The key components of an documented IPE can be broken down into three components
Why is IPE used in SOX?
The primary reason for this situation is because the obscurity associated with the term itself. To start off the abbreviation can be referred as “Information Provided by Entity” or “Information Produced by Entity”; depending on your auditing company and the person doing the audit either term can be used when referring to IPE.
What is the logic of the report?
The logic of the report will guide the person to only look for terminated users in system. This selection of terminated users from all user listing will be our control logic.
What Is The Name and Type of The Report That Was Run?
What Parameters Were used?
- Important parameters include the date range and the exclusion or inclusion of certain data. Such parameters indicate what data was pulled from the system and is the starting point of the IPE. If the data being pulled is inaccurate, the reporting and execution of the control has been compromised, and incorrect data yields inaccurate results.
How Is The Data Exported?
- Data is typically exported as PDF, Excel, CSV (commas separated values), or text files, each of which has its own characteristics. Although PDF is the least prone to manipulation, it cannot be used easily for further calculations on its own. An Excel file export is the most common format, as it allows for the use of formulas and the performance of various operations on the data. A CSV fil…
Is There Supporting Documentation?
- Such documentation might include a screenshot capturing the export details, or a copy of a report that was rerun to ensure the appropriate data has been included. When the preparer performs a control and uses certain data, it is the responsibility of the reviewer to corroborate that the data used in the execution of the control is complete and accurate. When the preparer includes a scr…