Developing an Engagement Plan

7/31/2019 Developing an Engagement Plan

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Developing an Engagement Plan

Once stakeholder commitment is established, a formal engagement plan will bedeveloped. This takes the form of a formal work plan and might simply be anelaboration of the proposals and associated documentation developed to date. The

work plan needs to address:

formal timeframe commitments; budgetary allocation; participant role descriptions; output indicators; evaluation approaches and success measures; and contingency strategies.

In addition, the engagement plan can serve as a formal, or informal contract with thepublic. In areas where participation has been poor because of low levels of trust,

making this document participative, or public, can be useful to demonstrate commitmentto the engagement approach by the agency and provide a benchmark against whichagency performance can be observed by stakeholders and potential participants.

As the implementation process moves forward, the formal engagement plan can serveas the basis for supporting documentation such as:

the marketing and promotion strategy; the technical specifications and, if necessary, contracting documents for systems

development; evaluation frameworks;

the final report; and the evaluation report.

Good documentation, from the outset of the project, will greatly assist in the process ofpost-project review and project termination.

ELEMENTS OF AN ASSURANCE ENGAGEMENT

The important elements involved in assurance engagement are:

Independence

Professionalism


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Figure 1SOURCE: Assurance Services: Definition and Interpretive Commentary. AIPCACommittee on Assurance Services, Final Report.

Information or context improvement

Decision makers

The CPA should be independent in order to provide an assurance service; that is, he orshe should have no vested interest in the information reported on. The CPA's only

interest should be the accuracy of the information, not whether the information portrays

results favorable or unfavorable to either the entity that prepares the information or the

one that uses it.

An assurance service is a professional service, meaning it draws on the CPA's

experience, expertise, and judgment. It is based on the skills brought to bear in more

traditional services, such as measurement, analysis, testing, and reporting.

Information in an assurance service can be financial or nonfinancial, historical or

forward-looking, discrete data or information about systems, internal or external to the

decision maker. The information's context relates to how it is presented. An assurance

service improves the information or its context by providing assurance about its

reliability, increasing its relevance, or making it easier to use and understand.

Decision makers are the users of the information and immediate beneficiaries of the

assurance service. They might be internal to an entity, such as the board of directors, or

a trading partner, such as a creditor or customer. The goal of an assurance service is to

improve the information or its context so that decision makers can make more

informednd presumably betterdecisions. The decision maker need not be the party

engaging the CPA or paying for the service.

The needs of decision makers are evolving. For decades their needs were generally

met by periodic cost-based financial statements. As in formation technology advances

and needs be come more decision-specific, decision makers are likely to:


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Replace their needfor/b>

With a need for/b>

periodic information real-time or continuous data

historical data forward-looking data

cost-based information value-based information

financial information comprehensive data that includes nonfinancial information

static statements searchable databases

Assurance services, how they are delivered, and the types of information they deal with

are evolving to meet these changing needs.

Although the needs of each decision maker are unique, in research done by the Special

Committee on Assurance Services, decision makers expressed keen interest in better

information about topics such as:

Business risks

Product quality

Performance measures

Quality of processes and systems

Strategic plan execution

Government performance

TYPES OF ASSURANCE SERVICES

The Special Committee on Assurance Services identified hundreds of assurance

services that CPAs provide. It also identified several services that it believed would be

of particular appeal to decision makers in the near future. They included the following.

Comprehensive risk assessments. The CPA identifies and assesses the various risks

facing an organization, such as the operating environment, operating systems, or

information systems. The risks might be internal, external, or regulatory. The CPA can

help prioritize the risks and assess the entity's efforts to control or mitigate risks faced.

Business performance measurement. Many organizations use, or should use, data to

run their businesses other than that emanating from the financial reporting system. Theservice deals with identifying or providing explicit assurance on the financial or

nonfinancial measures used to evaluate the effectiveness or efficiency of the

organization's activities. While CPAs have historically been involved in the development

of financial statement information, their skills and knowledge can add similar value to

the creation of other information that can monitor the organization's results and its

effectiveness in implementing strategic plans.


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Electronic commerce. As more business is conducted electronically (via the Internet or

in business-to-business electronic data interchange systems) participants have

concerns about the integrity and security of data transmitted in furtherance of those

transactions. An assurance service can help to address the risks and promote the

integrity and security of electronic transmissions, electronic documents, and the

supporting systems. One such service, CPA WebTrust, provides explicit assurance

about the disclosure of an entity's business policies and about the controls over privacy

and information integrity in consumer purchases over the Internet.

Systems reliability. As information technology advances, it becomes increasingly

common for critical information to be produced and acted on electronically. Accordingly,

decision makers need confidence that the information is continuously reliable. There is

an increased need for assurance that systems are designed and operated to produce

reliable data in such areas as information about customers, suppliers, and employees,

project costing, rights and obligations related to contractual agreements, and

competitors and market conditions. In systems reliability engagements, CPAs provideassurance about the design and operation of such systems.

Elder care services. The CPA assists the increasing population of older adults with a

wide range of services such as bill paying, providing assurance that health care

providers are providing services in conformity with the client's criteria, and consulting on

care alternatives and how to pay for them. The CPA provides independent, objective

information to protect vulnerable clients from potentially unethical individuals and

businesses as well as more traditional services (such as financial control) for

nontraditional clients.

Policy compliance. The CPA provides assurance that a company complies with its own

policies. The policiesuch as ones involving treatment of women or minorities, conflicts ofinterest, animal testing, environmental matters, or customer service-might be based on

internal concerns, calls for social accountability, or laws and regulations.

Trading partner accountability. The CPA provides assurance that the client's trading

partnersuch as suppliers, customers, or joint venture partnersave appropriately fulfilled

their responsibilities. Common situations involve collecting rents or royalties based on

sales made by another entity or agreements regarding use of lowest prices or specific

billing practices.

Mergers and acquisitions. The CPA applies the types of services done on a client's

records and practices to a potential acquisition. He or she can, for example, provide

insights into the acquisition target's business risks, appropriateness of accounting

methods, the value of its assets, or the adequacy of its systems and controls.

good engagement plan should include or consider the following issues:

Budget. An adequate budget is essential, including setting aside time for staff who


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need to be involved

Timeline. Be realistic about how long things take and always allow more rather than

less time for planning and for people to get involved. Remember that time is needed

between events for work to be completed and to be taken to the next stage.

Key dates and actions including when final decisions need to be taken, and by

whom, are all part of the planning process and should be part of the engagement

plan.

Methods. There are many different participatory/engagement techniques which

can be adopted, and indeed a range of methods are useful at different stages of

the consultation process. For further information on the different methodologies

and techniques available a useful publication to refer to would be The Community

Planning Handbook by Nick Wates, published by Earthscan Publications Ltd (2000).

Careful planning is required to ensure that the various methodologies adopted are

complementary and work together to make the overall process successful.

Organisational Logistics. Participatory processes require a lot of practical

arrangements, especially in terms of user-friendly briefing materials and suitable

venues. In additional to logistical practicalities, consideration should be given to the

choice of venue with respect to the positive and negative potential effects that this may

have on the process and its consequent outcomes.

Communication Strategy. Communication is important throughout the engagement

process. It is needed at the outset to get people interested, during the process so they

are kept abreast of what is happening, at the end and by way of follow-up, to ensure

that people are aware of what difference the process has made.

Follow up. Initial planning needs to consider right from the start:

- How the results will be used, how it will feed into decision-making systems, and


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how the final outcomes will be reported back to the participants and others

- How you will know whether the process has been a success success criteria can

be reformulated from the original objectives of the process

Appropriate follow up should be carried out as soon as reasonably possible after the

engagement event takes place.

Defining Outputs. Outputs are the tangible products of any process. Outputs include

such things as reports, meetings or workshops, exhibitions and leaflets: useful in

themselves, but alone will not meet the purpose of the engagement process.

Defining the desired outputs of the engagement process is a crucial part of the

engagement plan as it helps the process designer to select the most appropriate

methodology (different participatory techniques are designed to produce different

types of outputs); forces people to think through how the outputs will achieve the

desired outcomes (how will this meeting help achieve our overall outcomes?) and

ensures that the right outputs are produced at the right time.

d. capable of working successfully, it can be organized relatively easy

g. in a thrifty orfrugal manner; with economy.

2.as regards the efficient use of income and wealth:economically feasible proposals.3.as regards one's personal resources of money: He's quite welloff economically.

i. A board of directors is a body of elected or appointed members who jointly

oversee the activities of a company ororganization. Other names

include board of governors, board of managers, board of regents, board of

trustees, and board of visitors. It is often simply referred to as "the board".

j. Synonyms: sufficient, adequate, enough

These adjectives mean being what is needed without being in excess: has sufficient
http://dictionary.reference.com/browse/frugalhttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Board_of_governorshttp://en.wikipedia.org/wiki/Board_of_regentshttp://en.wikipedia.org/wiki/Company_(law)http://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Board_of_governorshttp://en.wikipedia.org/wiki/Board_of_regentshttp://dictionary.reference.com/browse/frugal


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income to retire comfortably; bought an adequate supply of food; drew enough water to

fill the tub.

k. 1. Properly or sufficiently qualified; capable: a competent typist.

2. Adequate for the purpose: a competent performance.3. Law Legally qualified or fit to perform an act.

2. Summary:

1.Efficiency means doing the things right whereas Effectiveness is about doing the right

things.

2.Efficiency focuses on the process or means whereas Effectiveness focuses on the

end.

3.Efficiency is restricted to the present state whereas effectiveness involves thinking

long term.

4.Organizations have to be both effective and efficient in order to be successful.

Attestation-- a consulting service in which a CPA expresses a conclusion about the

reliability of a written statement that is the responsibility of someone else

Professional skepticism in auditing implies an attitude that includes a questioning mind

and a critical assessment of audit evidence without being obsessively suspicious or

skeptical.

Agreed Upon Procedures Engagements(AT 201), such as verify-ing inventory quantities and locations.Examination or Review of Financial Forecasts and Projections(AT 301), such as analysis of prospective or hypothetical what iffinancial statements for sometime periodin the future(e.g., whatwould the financial statements look like next year for two compa-nies considering amerger?).Examination or Review of Pro Forma Financial Information(AT401), such as retroactively analyzing the effect of a proposed orconsummated

transaction on thehistoricalfinancial statementsas if that transaction had already occurred (e.g., what would theconsolidated financial statements look like if two companiesmerged last year?).Reporting on an Entitys Internal Control over FinancialReporting(AT 501).Compliance Attestation Engagements(AT 601), such as ascer- taining a clients compliance with debt covenants.


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Examination of Managements Discussion and Analysis(AT 701).6Part OneThe Contemporary Auditing Environment

Professional skepticism includes being alert to, for example:

Audit evidence that contradicts other audit evidence obtained.

Information that brings into question the reliability of documents and responses to

inquiries to be used as audit evidence.

Conditions that may indicate possible fraud.

Circumstances that suggest the need for audit procedures in addition to those

required by the ISAs.

Documents

Developing an Engagement Plan