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Account scoping

Article author
Tasha Kociszewski
  • Updated

Summary

The article talks about the concept of account scoping and how to classify accounts for scoping and reduce the potential to over audit.

Account scoping enables you to mark financial statement accounts as:

  • Significant: In your opinion, the account is worthy of further investigation.
  • Insignificant: In your opinion, the account does not require further investigation.
  • Unscoped: You have not yet formed an opinion about the account.
Note: Account scoping is only available in general ledger analyses.

Navigate to scoping

  1. Select the organization and subsequent engagement you want to see.
  2. On the Data page, go to the analysis you want to see and select View Analysis, or, open the sidebar and use the Analyze menu to select the appropriate analysis.
  3. On the Analyze page, go to the Financial Statements tab.
  4. Open the Actions menu.
  5. Select Scope accounts.*
    You will go to Scope accounts on the Scope accounts page.

*If this menu option is disabled, materiality may be a required field.


Scope accounts

Automatic scoping

Note: To enable the option to automate scoping, you must first add materiality to the analysis.

On the Scope accounts page, select Automate scoping.

Your accounts are automatically scoped as significant or insignificant, based on materiality.

Manual scoping

On the Scope accounts page, there are 2 ways to manually scope accounts:

  1. Go to the Scoping decision column and open the menus in line with the individual accounts you want to scope, or, use the checkboxes to select the accounts you want to scope (use the first checkbox to select all).
  2. For the checkbox method, open the Actions menu that appears to find the scoping decision options.
  3. Select whether the accounts are:
    • Significant
    • Insignificant
    • Unscoped
  4. When you are satisfied, select Next to proceed.
    You will go to the Summary step on the Scope accounts page. 
  5. When you are satisfied, Save your work and go back to the Financial Statements tab, or, go Back to make further adjustments.

Account_scoping_-_Manual_scoping.gif

Cancel at any time to discard scoping and go back to the Financial Statements tab.

Edit scoping

Scoping decisions can be revisited at any time.

  1. Follow the process for manual scoping (above) to change the scope of an account, then select Next.
    You will go to the Summary step on the Scope accounts page. 
    Updated accounts appear in blue and a new column lets you know what the scoping decision was Changed from.
  2. When you are satisfied, Save your work and go back to the Financial Statements tab, or, go Back to make further adjustments.
Note: Any significant account reports will be lost if its respective account is changed to insignificant or unscoped.

Filter for scoped accounts

Risk Overview

  1. Go to the Risk Overview tab on the Analyze page.
  2. In the Account scoping menu, select whether you want to view Significant accounts, Insignificant accounts, or Unscoped accounts.
    Your selection is reflected below.

Learn more about the Risk Overview dashboard.

Data Table

  1. Go to the Data Table tab on the Analyze page.
  2. In the Filter builder, select Add a condition and hover on Account scoping
  3. Open the field menu and select whether you want to filter for Significant accounts, Insignificant accounts, or Unscoped accounts.
  4. Apply your selection.

Audit Assertion Risk

Once the accounts have been scoped, the Account risk by assertion table will only display scores for accounts that have been scoped as significant.


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