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Trainee Q&A

 I have to vouch from source documents to the ledger and create a working paper to which I have to ‘tick' too! Is this really necessary? Can I not just ‘tick' and say I have tested it once I have seen that eight transactions were so far correct?

Answer: This question is similar to me saying that I will be doing blood tests on you for a list of different ailments and after the first test I just assume the rest are going to be fine so I do not test them and just ‘tick' them to be OK. ‘Phantom ticking' is a virus you do not wish to catch. While you are doing your articles, you need to show that you are ethical and by basically committing fraud you are showing signs of deviant behaviour that do not tie into the ethos of being a Chartered Accountant. Also be advised that the file you are doing can be called into court five years after it was completed. If there is evidence of your ‘phantom ticking' you could be held liable. The work you are doing is very important to the audit, seeing it as a monotonous exercise is a poor reflection on your view of what it is you are requested to do. Vouching that there are no missing sales is a crucial test for completeness of income, not to mention the understating of sales. Each ‘tick' you make represents a task you have completed, there will be individuals that will put reliance on the fact that it says you have done what you say you have done. Do the work, vouch the transactions and sleep easy knowing you have done what is expected and what is required and what may be expected.

Question: Is there a valid reason why we have to create these audit files that are larger than most novels I read! Is all this work needed for maybe seventeen pages of financial statements?

Answer: “Quality, not quantity”, this should be your view on your file, not the size. The financials you are drawing up are of great importance to many different users. All the figures in financial statements need to have substantial evidence of being factual, genuine, complete, reliable and meet statutory requirements. The file you create is the link between the financial statements and the substantial evidence that is needed. For every balance in the financial statements there needs to be audit work and assurance in the audit file that the figures are correct. The size of the file does not represent the quality of the work. Your view on file size means you do not see the reason behind doing the file. Once you realise that the file is a representation of the financial statements you will forget about the size of the file and focus on the work done to assure the balances, policies and standards are correct and in accordance with statutory requirements.

Jevron Epstein is a trainee accountant at Nolands.

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Comment(s)

• Ivan
  1 July 2010

  This is very true and well written!
  I agree, all audit files should tell a story of how the figures came to be!
  
  Well done jevron.

• Riaan
  2 July 2010

  Wow, i have thought about phantom ticking for a while now.... I will not be doing that any time soon! 5 years!!! HECTIC!

• Teresa
  8 July 2010

  Where can i send my questions to for Jevron to answer?

• Teresa
  8 July 2010

  Where can i send my questions to for Jevron to answer?

• mpho
  9 July 2010

  Hi Teresa - please email to mphoh@saica.co.za and we will email them to Jevron. Thanks

• Teresa
  9 July 2010

  Hi Mphoh, i tried e mailing you but it did not go through?
  
  My question is: Are tainees allowed any benefits through SAICA if not can Jevron not start something up?

• Mpho
  22 July 2010

  Hi Teresa - The benefits for Trainees from SAICA are mostly through their firms, also, SAICA does host Trainee events. Please check with your Trainee Officer for benefits and events you can take part.

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