Provision 29 Readiness
Your board declares on material controls. The auditor isn’t required to test them.
Provision 29 requires the board to declare whether material controls were effective at the balance sheet date. Ditton helps build the identification, evidence and escalation that declaration rests on.
The sequence
What usually has to happen
- Principal risks
- Material controls identification
- Ownership and documentation
- Evidence and monitoring framework
- Deficiency escalation
- Dry-run assessment
- Board declaration support
The FRC has not prescribed a number of material controls and has said it will not.
Deliverables
What Ditton delivers
- Control design assessmentDetermines whether each material control, as designed, addresses the principal risk it is linked to.
- Testing workpaperRecords the population, sample, attributes tested, evidence examined and conclusion on a control’s operating effectiveness.
- Deficiency evaluation memoDocuments the severity assessment of a control exception, including aggregation and compensating controls, and the basis for classification.
- Remediation trackerTracks each deficiency from root cause through remediation to validated closure, with owners and target dates.
- Board reporting extractSummarises the status of material controls and open deficiencies in the form the board needs to support its declaration.
Engagement
How to start
Fixed-fee entry point
Provision 29 Material Controls Readiness Review
A review of how material controls are identified, owned and evidenced today, with written findings and a defined scope for the programme.
Fixed fee — confirmed at scopingScoped programme
Provision 29 Readiness Programme
Scoped from the Readiness Review: from principal risks through to board declaration support.
Scoped engagement — quoted after a scoping callDownload
Engagement Scope Note
How a Ditton engagement is scoped: deliverables, boundaries and commercial terms, agreed before work begins.