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 2019 exposure drafts and an invitation to comments.
The course will examine:
Canadian Auditing Standards:
Standards issued in 2019:
• CAS 540, CAS 540, Auditing Accounting Estimates and Related Disclosures - Examine key issues regarding estimates, such as the scalability of the requirements for simple and complex estimates, exercising professional skepticism and requirements related to documentation.
• CAS 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment – Examine key proposals such as the definition of inherent risk factors; and requirements related to identifying and assessing the risks of material misstatement, including a separate assessment of inherent and control risks.
• Auditor Reporting – Key Audit Matter Reporting and Other Considerations – In making amendments to CAS 700, the AASB required auditors to communicate key audit matters in the auditor’s report for audits of listed entities. In this phase of the project is considering whether reporting on key audit matters should be required for audits of other listed entities.
• CAS 600 Group audits – Review the status of the project and briefly discuss proposed changes to CAS 600.
Other Canadian Standards
• Agreed Upon Procedures – The objective of this project is to update s.9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements in light of the new auditor reporting standards issued in 2018.
Compilation Engagements – We will review changes being proposed, compared to the existing s.9200 and the status of the Canadian project on Compilation Engagements.
AASB approved the exposure draft of proposed 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. The exposure draft examines the components of firm culture that impact quality, monitoring and remediation processes, requirements addressing the firm’s technology, etc.