Notice—Reporting Implications of the Canadian Auditing Standards (4th edition) and Audit client briefing on revised CAS 540
Jan-2020

Target audience: All Attest Auditors

Effective date: Immediately

Prepared by: AAPT

Description of subject: The following two publications by CPA Canada are now available on the Intranet under Additional Resources in Standard-Setting Activities.

  • The 4th edition of the Auditor reporting guide: Reporting implications of Canadian Auditing Standards (CAS).  Changes include:
    • A new chapter, Chapter 13: Key Audit Matters (KAMs) has been added to the guide to assist the auditor when CAS 701, Communicating Key Audit Matters in the Independent Auditor's Report applies.
    • The Q&As summarize how key audit matters are to be communicated in the auditor's report and the reporting implications on key audit matters when the auditor is found to be in different reporting situations.
    • New Q&As have been added to the following chapters:
      • Chapter 2: Addressing and Dating of the Report—Q&A 1—Who is the appropriate addressee of the report?
      • Chapter 12: Group Audits—Q&A 4—If the auditor is both the group auditor and the component auditor for all components in the group, is the group auditor responsibility paragraph included?
      • Chapter 14: Other Information—Q&A 8—What are the reporting implications when the opinion is qualified due to a scope limitation?
    • A new illustration has been added to Chapter 14: Other Information—Illustration 4—A not-for-profit entity other than a listed entity, with a qualified opinion when the auditor has obtained all of the other information prior to the date of the auditor's report and there is a limitation of scope related to the completeness of revenue.
  • Audit client briefing: Revised CAS 540, Auditing estimates
    • This audit client briefing provides you with a publication that can be shared with your audit clients to help explain the requirements of revised CAS 540. It will also make management aware of matters to consider in preparing for and responding to the significant revisions in, and the auditor's requests pertaining to CAS 540.

Questions: Contact AAPT