audit-support

Name: audit-support
Author: anthropics

2.3kinstalls2.7kforks

How to install audit-support?

anthropics/knowledge-work-plugins/audit-support

$npx -y skills add anthropics/knowledge-work-plugins --skill audit-support

Installs into the current project.

Summary

Support SOX 404 compliance with control testing methodology, sample selection, and documentation standards. Use when generating testing workpapers, selecting audit samples, classifying control deficiencies, or preparing for internal or external audits.

Files · 1

View on GitHub

SKILL.md

1	# Audit Support
2
3	Important: This skill assists with SOX compliance workflows but does not provide audit or legal advice. All testing workpapers and assessments should be reviewed by qualified financial professionals. While "significance" and "materiality" are context-specific concepts that are ultimately assessed by auditors, this skill is intended to assist professionals in the creation and evaluation of effective internal controls and documentation for audits.
4
5	SOX 404 control testing methodology, sample selection approaches, testing documentation standards, control deficiency classification, and common control types.
6
7	## SOX 404 Control Testing Methodology
8
9	### Overview
10
11	SOX Section 404 requires management to assess the effectiveness of internal controls over financial reporting (ICFR). This involves:
12
13	1. Scoping: Identify significant accounts and relevant assertions
14	2. Risk assessment: Evaluate the risk of material misstatement for each significant account
15	3. Control identification: Document the controls that address each risk
16	4. Testing: Test the design and operating effectiveness of key controls
17	5. Evaluation: Assess whether any deficiencies exist and their severity
18	6. Reporting: Document the assessment and any material weaknesses
19
20	### Scoping Significant Accounts
21
22	An account is significant if there is more than a remote likelihood that it could contain a misstatement that is material (individually or in aggregate).
23
24	Quantitative factors:
25	- Account balance exceeds materiality threshold (typically 3-5% of a key benchmark)
26	- Transaction volume is high, increasing the risk of error
27	- Account is subject to significant estimates or judgment
28
29	Qualitative factors:
30	- Account involves complex accounting (revenue recognition, derivatives, pensions)
31	- Account is susceptible to fraud (cash, revenue, related-party transactions)
32	- Account has had prior misstatements or audit adjustments
33	- Account involves significant management judgment or estimates
34	- New account or significantly changed process
35
36	### Relevant Assertions by Account Type
37
38	\| Account Type \| Key Assertions \|
39	\|-------------\|---------------\|
40	\| Revenue \| Occurrence, Completeness, Accuracy, Cut-off \|
41	\| Accounts Receivable \| Existence, Valuation (allowance), Rights \|
42	\| Inventory \| Existence, Valuation, Completeness \|
43	\| Fixed Assets \| Existence, Valuation, Completeness, Rights \|
44	\| Accounts Payable \| Completeness, Accuracy, Existence \|
45	\| Accrued Liabilities \| Completeness, Valuation, Accuracy \|
46	\| Equity \| Completeness, Accuracy, Presentation \|
47	\| Financial Close/Reporting \| Presentation, Accuracy, Completeness \|
48
49	### Design Effectiveness vs Operating Effectiveness
50
51	Design effectiveness: Is the control properly designed to prevent or detect a material misstatement in the relevant assertion?
52	- Evaluated through walkthroughs (trace a transaction end-to-end through the process)
53	- Confirm the control is placed at the right point in the process
54	- Confirm the control addresses the identified risk
55	- Performed at least annually, or when processes change
56
57	Operating effectiveness: Did the control actually operate as designed throughout the testing period?
58	- Evaluated through testing (inspection, observation, re-performance, inquiry)
59	- Requires sufficient sample sizes to support a conclusion
60	- Must cover the full period of reliance
61
62	## Sample Selection Approaches
63
64	### Random Selection
65
66	When to use: Default method for transaction-level controls with large populations.
67
68	Method:
69	1. Define the population (all transactions subject to the control during the period)
70	2. Number each item in the population sequentially
71	3. Use a random number generator to select sample items
72	4. Ensure no bias in selection (all items have equal probability)
73
74	Advantages: Statistically valid, defensible, no selection bias
75	Disadvantages: May miss high-risk items, requires complete population listing
76
77	### Targeted (Judgmental) Selection
78
79	When to use: Supplement to random selection for risk-based testing; primary method when population is small or highly varied.
80
81	Method:
82	1. Identify items with specific risk characteristics:
83	- High dollar amount (above a defined threshold)
84	- Unusual or non-standard transactions
85	- Period-end transactions (cut-off risk)
86	- Related-party transactions
87	- Manual or override transactions
88	- New vendor/customer transactions
89	2. Select items matching risk criteria
90	3. Document rationale for each targeted selection
91
92	Advantages: Focuses on highest-risk items, efficient use of testing effort
93	Disadvantages: Not statistically representative, may over-represent certain risks
94
95	### Haphazard

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Type

audit-support

2.3kinstalls2.7kforks

View on GitHub

How to install audit-support?

anthropics/knowledge-work-plugins/audit-support

$npx -y skills add anthropics/knowledge-work-plugins --skill audit-support

Installs into the current project.

Summary

Files · 1

View on GitHub

SKILL.md

1	# Audit Support
2
3	Important: This skill assists with SOX compliance workflows but does not provide audit or legal advice. All testing workpapers and assessments should be reviewed by qualified financial professionals. While "significance" and "materiality" are context-specific concepts that are ultimately assessed by auditors, this skill is intended to assist professionals in the creation and evaluation of effective internal controls and documentation for audits.
4
5	SOX 404 control testing methodology, sample selection approaches, testing documentation standards, control deficiency classification, and common control types.
6
7	## SOX 404 Control Testing Methodology
8
9	### Overview
10
11	SOX Section 404 requires management to assess the effectiveness of internal controls over financial reporting (ICFR). This involves:
12
13	1. Scoping: Identify significant accounts and relevant assertions
14	2. Risk assessment: Evaluate the risk of material misstatement for each significant account
15	3. Control identification: Document the controls that address each risk
16	4. Testing: Test the design and operating effectiveness of key controls
17	5. Evaluation: Assess whether any deficiencies exist and their severity
18	6. Reporting: Document the assessment and any material weaknesses
19
20	### Scoping Significant Accounts
21
22	An account is significant if there is more than a remote likelihood that it could contain a misstatement that is material (individually or in aggregate).
23
24	Quantitative factors:
25	- Account balance exceeds materiality threshold (typically 3-5% of a key benchmark)
26	- Transaction volume is high, increasing the risk of error
27	- Account is subject to significant estimates or judgment
28
29	Qualitative factors:
30	- Account involves complex accounting (revenue recognition, derivatives, pensions)
31	- Account is susceptible to fraud (cash, revenue, related-party transactions)
32	- Account has had prior misstatements or audit adjustments
33	- Account involves significant management judgment or estimates
34	- New account or significantly changed process
35
36	### Relevant Assertions by Account Type
37
38	\| Account Type \| Key Assertions \|
39	\|-------------\|---------------\|
40	\| Revenue \| Occurrence, Completeness, Accuracy, Cut-off \|
41	\| Accounts Receivable \| Existence, Valuation (allowance), Rights \|
42	\| Inventory \| Existence, Valuation, Completeness \|
43	\| Fixed Assets \| Existence, Valuation, Completeness, Rights \|
44	\| Accounts Payable \| Completeness, Accuracy, Existence \|
45	\| Accrued Liabilities \| Completeness, Valuation, Accuracy \|
46	\| Equity \| Completeness, Accuracy, Presentation \|
47	\| Financial Close/Reporting \| Presentation, Accuracy, Completeness \|
48
49	### Design Effectiveness vs Operating Effectiveness
50
51	Design effectiveness: Is the control properly designed to prevent or detect a material misstatement in the relevant assertion?
52	- Evaluated through walkthroughs (trace a transaction end-to-end through the process)
53	- Confirm the control is placed at the right point in the process
54	- Confirm the control addresses the identified risk
55	- Performed at least annually, or when processes change
56
57	Operating effectiveness: Did the control actually operate as designed throughout the testing period?
58	- Evaluated through testing (inspection, observation, re-performance, inquiry)
59	- Requires sufficient sample sizes to support a conclusion
60	- Must cover the full period of reliance
61
62	## Sample Selection Approaches
63
64	### Random Selection
65
66	When to use: Default method for transaction-level controls with large populations.
67
68	Method:
69	1. Define the population (all transactions subject to the control during the period)
70	2. Number each item in the population sequentially
71	3. Use a random number generator to select sample items
72	4. Ensure no bias in selection (all items have equal probability)
73
74	Advantages: Statistically valid, defensible, no selection bias
75	Disadvantages: May miss high-risk items, requires complete population listing
76
77	### Targeted (Judgmental) Selection
78
79	When to use: Supplement to random selection for risk-based testing; primary method when population is small or highly varied.
80
81	Method:
82	1. Identify items with specific risk characteristics:
83	- High dollar amount (above a defined threshold)
84	- Unusual or non-standard transactions
85	- Period-end transactions (cut-off risk)
86	- Related-party transactions
87	- Manual or override transactions
88	- New vendor/customer transactions
89	2. Select items matching risk criteria
90	3. Document rationale for each targeted selection
91
92	Advantages: Focuses on highest-risk items, efficient use of testing effort
93	Disadvantages: Not statistically representative, may over-represent certain risks
94
95	### Haphazard

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6 picks

Type