The objective of the Assurance Update is to provide practitioners and firms with an overview of recent changes to assurance standards. The course will review recently issued standards, the status of current projects, upcoming 2021 exposure drafts and projects.
The course will examine:
Canadian Auditing Standards:
· CAS 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) – Exposure draft was issued in May 2020 and the AASB is evaluating comments submitted. This ED proposes, updating the requirements to deal with common deficiencies, cultural and legal barriers, etc., as well as making conforming changes to recently updated CASs.
· Audit Evidence – Driven by the growing use of technology in audits this project is examining the nature and extent of audit evidence and the need for exercising professional skepticism. The project will lead to changes in CAS 500 Audit Evidence, which was issued in 2009.
· Audits of Less Complex Entities – This project is examining scalability challenges identified by practitioners in auditing small and micro entities. The project is examining these challenges and exploring possible options.
· CAS 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment – The session will briefly examine key changes from CAS 315, assessing and evaluating inherent risks, assessing and documenting the risk of material misstatement and the impact of CAS 330.18 stand-back procedures on your audit plan. This standard represents a significant change from the old standard.
Other Canadian Standards
· Compilation Engagements – Standard is issued in March 2020 and is effective for compiled financial information for periods ending on or after December 14, 2021. We will briefly review changes compared to the existing s.9200 and examine what the impact will be for compiled financial information under the new standards. This session is meant to provide an overview of the new requirements and not an in-depth look at the new methodology, guidance, or implementation issues.
· Quality Control – AASB approved Canadian Standard on Quality Management (CSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements; CSQM 2, Engagement Quality Reviews; and CAS 220, Quality Management for an Audit of Financial Statements. These new quality management standards represent a significant change from the existing standards in designing, implementing, and maintaining a system of quality management. The sessions will briefly examine some of the key differences between the standards and how this will impact a firms existing quality control system.
Marcus Guenther MBA, CPA, CA
Marcus Guenther works with corporations and accounting firms to improve their workflow, internal control and risk management practices, as well as assisting with technical accounting and auditing issues. He is the co-author of the CICA Professional Engagement Manual (CPEM) as well as other technical publications and articles and teaches accounting, IFRS, and auditing and assurance courses for numerous professional organizations.