By Jeff Brocklebank and Chris Reimer.
The Chartered Professional Accountants of Canada (CPA Canada) has recently introduced new standards which will be applicable for all audit engagements with periods ending on or after December 15, 2018.
The new reporting standards do not change the scope of an audit. The focus is on providing enhanced transparency by clarifying the scope of the auditor’s work as well as the roles and responsibilities of the auditor, the organization’s management, and those charged with governance.
What does this mean for your organization?
There will be a new look to the auditor’s report.
The changes will improve communication by making the auditor’s report more informative and relevant to user decision making.
Significant changes for a private entity’s auditor’s report include:
- Auditor’s Opinion
The auditor’s opinion has been moved to the beginning of the report.
- Auditor’s Independence and Ethics
An explicit statement has been added relating to the auditor’s independence in accordance with relevant ethical requirements and other ethical responsibilities.
- Going Concern
A new separate section has been added which will be required when a material uncertainty exists relating to an entity’s ability to continue as a going concern.
- Roles and Responsibilities
Management’s responsibilities for assessing the entity’s ability to continue as a going concern and other related matters have been enhanced.
The description of the auditor’s responsibilities has been enhanced.
The report requires the identification of those charged with governance, if applicable, and their responsibility for the oversight of the financial reporting process.
How can our team help?
We undertake audits for our clients in a diverse range of industries – including transportation and logistics, construction, retail, technology and more. To learn more about our specialized industry experience, please click here.
If you have questions about the new audit reporting standards or would like to know more about our audit services, please contact us.
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