Assurance and Related Services

Updated: December 11, 2024

As more clients begin transitioning from traditional, physical data servers to virtual ones, cloud computing is changing how entities conduct their business. Audit practices are rapidly evolving alongside the explosion in this technology—especially as it relates to data.

Learn more: A Look at how Cloud Technology is Impacting the Audit

High-quality audits support the smooth functioning of capital markets. The public interest is best served when everyone in the financial reporting system has confidence in audits. In recent years, high-profile international corporate failures and significant accounting restatements have put a spotlight on those involved in the preparation, approval, audit, analysis, and use of financial reports, particularly in the area of fraud.

The IAASB has now issued an Exposure Draft of International Standard on Auditing (ISA) 240 (Revised), The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, and the related conforming and consequential amendments. In addition, the IAASB’s Exposure Draft also includes an Explanatory Memorandum, which provides background to, and an explanation for, the proposed revisions to extant ISA 240.

The AASB plans, subject to comments received following exposure, to adopt proposed ISA 240 (Revised) and the proposed conforming and consequential amendments to other ISAs. The result would be revised respective Canadian Auditing Standards (CASs).

Learn more: The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements.

The Auditing and Assurance Standards Board (AASB) developed this publication to address how the International Accounting Standards Board’s (IASB) narrow-scope amendments to International Accounting Standard (IAS) 1, Presentation of Financial Statements affect the Canadian Auditing Standards (CASs) and Canadian Standard on Review Engagements (CSRE) 2400, Engagements to Review Historical Financial Statements. This publication does not amend or override the CASs, the texts of which alone are authoritative. Reading this publication is not a substitute for reading the CASs.

Narrow-scope Amendments to IAS 1: The narrow-scope amendments to IAS 1 require entities to disclose their material accounting policy information, instead of significant accounting policies. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. The IASB has provided guidance on how to apply the concept of materiality to accounting policy disclosures.

Learn more: Amendments to IAS 1 and the Impact on the CASs: Disclosure of Material Accounting Policy Information

Issues Related to the Assessment of the Effectiveness of Management Review Controls: Roundtable Summary explores areas that create challenges in implementing effective design, precision and operation of management review controls, and in assessing their effectiveness. The report includes highlights of a recent roundtable held to identify and share leading practices for practitioners and auditors on how to address these often-highly subjective controls.

Learn more: Assessing Management Review Controls

 

This brief helps group auditors interact and communicate effectively with those involved in audits of group financial statements, including group management, those charged with governance of the group, component auditors and, where applicable, component management.

Learn more: Audit client briefing: CAS 600, What Group Management Needs to Know

A new joint policy statement between auditors and actuaries is effective for communications initiated on or after March 31, 2023.

Learn more: Read this alert to learn more about the changes.

In January 2021, the Auditing and Assurance Standards Board (AASB) unanimously approved the suite of quality management standards, including Canadian Standard for Quality Management 1 (CSQM 1). CSQM 1 replaces Canadian Standard on Quality Control 1 (CSQC 1).

Learn more: This Audit and Assurance Alert is being issued to raise awareness about the unanimously approved suite of quality management standards including CSQM 1 replacing CSQC 1.

For entities of all types and sizes, management has to make accounting estimates, which have estimation uncertainty and may also be complex. Making these estimates involves selecting and applying a method using assumptions and data, which requires judgment. The nature, timing and extent of the audit procedures will vary in relation to the estimation uncertainty and the assessment of the related risks of material misstatement.

Learn more: Auditing Accounting Estimates

 

Take advantage of CPA Canada's reporting guide, which aims to promote consistency in the form and content of practitioners' reports by providing guidance with respect to commonly occurring reporting circumstances.

Learn more: Reporting Implications of Canadian Auditing Standards.

Learn more about the common questions auditors have when applying CAS 402, Audit Considerations Relating to an Entity Using a Service Organization.

Learn more: CAS 402 - Service Organizations

The Canadian Securities Administrators published final disclosure requirements for issuers who voluntarily disclose non-GAAP and other financial measures. Also in May, the CSA proposed changes to the continuous disclosure requirements for non-investment fund reporting issuers.

Learn more: CSA Publishes Disclosure Rules for Non-GAAP and Other Financial Measures

 

Looking for answers to common questions about implementing CSRS 4400, Agreed-upon Procedures Engagements? This FAQ document provides you with a series of questions identified during exposure of the proposed CSRS 4400 Agreed-upon Procedures Engagements, where outreach activities identified potential implementation risks and areas that may need further clarification.

Learn more: CSRS 4400, Agreed-upon procedures engagements: Frequently asked questions (FAQs)

 

Climate change is increasingly front of mind for investors and other stakeholders as its effects are increasingly visible. This alert assists auditors in understanding considerations of climate-related risks in an audit of financial statements.

Learn more: Climate-related risks of an audit of financial statements: Audit and assurance alert

This project will replace Assurance and Related Services Guideline (AuG) 16, Compilation of a Financial Forecast or Projection, with a new Canadian Standard on Related Services (CSRS). 

AuG-16 was first issued in 1993 and has not been updated since.  When the AASB issued a new CSRS 4200, Compilation Engagements, to replace Section 9200, Compilation Engagements, the AASB determined that it should conduct preliminary research. The purpose of the research was to understand the implications of CSRS 4200 on AuG-16 and challenges faced by practitioners when assisting entities in compiling FOFI or pro forma.

Learn more: Compilations of Future-oriented Financial Information (FOFI) and Pro Forma


The Auditing and Assurance Standards Board published three publications setting out guidance on Canada’s audit requirements for communicating key audit matters in auditors’ reports: Lessons Learned from Firms Implementing KAM Communications on Audits of TSX-Listed Entities: Identifying and Communicating KAMs in the Auditor’s Report; Roadmap to Developing a Successful KAM-Implementation Process and Frequently Asked Questions.

Learn more: Future of Audit: Communicating Key Audit Matters

Learn about the components of a system of quality management, what this means for your firm and steps to take to implement the new Canadian Standards on Quality Management.

Learn more: Implementation tool for practitioners: New quality management standards

CPA Canada has released two new alerts to provide additional guidance on the new suite of quality management standards. The Audit and Assurance Alert explains the timeline of events for these new standards and links to the International Auditing and Assurance Standards Board’s fact sheets.

Learn more: New Alerts Focus on Implementation of Quality Management Standards

Reporting consistency is crucial to the success of your practice. Get guidance on commonly occurring reporting circumstances with this publication.

Make sense of the complexities relating to Canadian Standard on Review Engagements (CSRE) 2400, with this guide meant promote consistency in the form and content of practitioners’ reports by providing guidance with respect to commonly occurring circumstances. From a broad overview of financial frameworks to gathering historical financial data outside of statements, you’ll be well equipped to face a variety of reporting challenges.

Learn more: Reporting implications of CSRE 2400

The International Ethics Standards Board for Accountants released revisions to its international ethics code that “significantly strengthen the guardrails around auditor independence” in two areas that have the potential to create incentives influencing auditor behavior: non-assurance services provided to audit clients and fees.

Learn more: Revisions to the Non-Assurance Service Provisions of the Code

Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements addresses challenges commonly encountered in applying the standard in assurance engagements on EER. The guidance provides advice on: applying appropriate competence and capabilities; exercising professional skepticism and judgment; the preconditions for an assurance engagement; and specific technical matters.

Learn more: Understanding International Standard on Sustainability Assurance 5000

This resource provides the decision maker with a framework to understand the type of engagement that best meets the needs of the intended user(s) of the practitioner’s deliverable.

Learn more: Understanding assurance needs: A framework for the decision-maker

As the crypto-asset market continues to expand, it has highlighted challenges for auditors in obtaining assurance over this complex asset class. This FAQ aims to answer some key questions specific to auditing revenue at a crypto-asset mining entity. This non-authoritative guidance can be applied to companies running their own mining operations, or to miners participating in a pool.

Learn more: FAQ to learn about considerations when auditing crypto-asset mining revenue



 

 

 

 

 

 

 



 

 

 

 

 

 


 

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