October 2026

Greetings,

October already!! The year is moving so fast. This month’s topics come from a variety of sources. As you know, I read a lot and filter through a lot of extraneous material that I then pass onto you. The two key features this month are ones I really think are worth the time to explore. Read on…

Management Override of Controls: Journal Entry Testing

Every once in a while, a technical publication comes out that is genuinely practical.

The AASB’s new three-part Audit Insights series on testing journal entries in audits of less complex entities is one of those.

What I like about it is that it does not just repeat CAS 240. It helps connect the requirements to what journal-entry testing should actually look like on the file.

The three parts cover:

• Part 1: Why we test journal entries and how the risk assessment should drive the approach.
• Part 2: How to know the journal-entry population is complete.
• Part 3: What to select and what testing should actually be performed.

A few points really stood out to me: the approach should be risk-based and tailored to the entity, standard firm criteria are only a starting point, completeness of the population deserves more attention, and testing more entries does not automatically mean better testing.

There is also some very useful guidance on efficiency, including when other audit procedures may contribute to the journal-entry testing response.

If you audit less complex entities, this is a short series that is well worth the read.

Read the publications here.

The Power of Client Classification in SMPs

Understanding your clients and their impact on your business is essential for effective decision-making in small and medium-sized practices (SMPs). By taking a strategic approach and linking client categorization to long-term decision-making, SMPs can more effectively enhance profitability, manage risks and tailor their services.

IFAC has helpful guidance that you may want to consider in planning for this upcoming season. We are busy and to me, it makes sense to put energy where it will pay off.

READ THE IFAC ARTICLE HERE (Note: you will have to create an IFAC account if you don’t already have one, but I think it is worth it as many of my topics come from IFAC… and it is free).

ASK KSA PD

Last month I announced the launch of 11 new courses that were added to the ASK KSA PD library.

The objective of ASK KSA PD is to provide courses that are informative, practical and engaging. The courses explain the standards, but go further with real-world scenarios, implementation guidance and documentation strategies to help you apply the requirements, exercise professional judgement and strengthen both quality and efficiency.

There are also new courses on everything from initial engagements, the revised standard on Going Concern, auditing inventory to related parties, external confirmations and using an auditor’s expert. I am really excited about these, and all the existing, courses offered.

The take up of these new courses has been very strong; I have received a lot of positive feedback on the courses which I greatly appreciate.

Explore the new ASK KSA PD course library here and choose learning you can put to work.

To continue the celebration of the launch of the new ASK KSA PD courses, I will extend the introductory 10% discount for the month of November. Whether you want to try one of the 11 new courses or choose from the existing ASK KSA PD library, simply use code OCTOBER10 at checkout.

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I look forward to connecting with many of you over the coming months. Whether it is PD training, cyclical file inspections or CSQM 1 monitoring assistance, reach out any time. I am always here to help you save time and achieve peace of mind.

Best regards,

Kirsten S. Albo, FCPA, FCA

President