Methodology Update—Reports to the Audit Committee and Management Representation Letter Templates
May-2022

Target Audience: All attest auditors

Effective date: The revised methodology is effective upon release.

Prepared by: Audit Services

Updates to Templates:

The Report to the Audit Committee—Annual Audit Plan and Report to the Audit Committee—Annual Audit Results templates are now issued and available on the INTRAnet. The update includes:

Updates to the Management Representation Letter—IFRS and Management Representation Letter—PSAS are now available on the Templates and Checklist page.

The main changes in the Management Representation Letter—IFRS are:

  • New section for CAS 701 Communicating Key Audit Matters in the Independent Auditor’s Report;
  • New section for revised IFRS 9 Financial instruments, IAS 39 Financial instruments: Recognition and measurement, IFRS 7 Financial instruments: Disclosures, IFRS 4 Insurance contracts and IFRS 16 Leases amendments as a result of Interest Rate Benchmark Reform (IBOR) – Phase 2 effective for annual periods beginning on or after January 1, 2021.

The main changes in the Management Representation Letter—PSAS are:

  • New section for CAS 701 Communicating Key Audit Matters in the Independent Auditor’s Report
  • New section for PS 3280 Asset Retirement Obligations effective for years beginning on or after 1 April 2022
  • New/Updated sections for PS 3160 Public Private Partnerships effective for years beginning on or after 1 April 2023
  • New/Updated sections for PSG–8 Purchased Intangibles effective for years beginning on or after 1 April 2023
  • New section for PS 3400 Revenue effective for years beginning on or after 1 April 2023

NB: Updates to the above templates were made available to the audit practice in PROxI during winter 2022 due to reduced publishing capacity at that time. There are no significant differences between the wording shared in PROxI and these final versions.

Questions: Contact AEA