3081.1 Summary of matters for consultations

Dec-2022

1174

If the audit team becomes aware of litigation regarding an audit that has been discontinued, cancelled or postponed, the engagement leader should consult Legal Services immediately, before closing the audit file.

Guidance

Legal services

3011

Where the engagement leader identifies issues as a result of these planning procedures [acceptance and continuance procedures], he or she shall consult the assistant auditors general of the applicable audit practice and document how the issues were resolved. [Sep‑2015]

Policy

AAG of the applicable audit practice

3011

Policy

AG

AAG of the applicable audit practice

Legal services

3011

For each new discretionary financial audit where the Office has discretion to accept or decline the engagement (including all requested appointments under 134(2) of the FAA), the entity principal shall consult Legal Services to determine whether the Office has the authority to conduct the engagement.

Guidance

Legal services

3011

Where acceptance procedures for a new statutory financial audit identify issues that would require waiving or declining the appointment if option is available, the engagement leader consults with the assistant auditors general of the annual audit practice.

Guidance

AAG of the annual audit practice

3011

Should individual audit practices be unable to accept one or more new engagements within established audit practice resource envelopes, the assistant auditors general of the applicable audit practice shall consult the remaining audit practices assistant auditors general prior to accepting the engagement.

Guidance

AAG of the applicable audit practice

3011

Withdrawal from an appointment as auditor may be desirable or necessary in certain circumstances. Where the engagement leader obtains information that would have caused the Office to decline an engagement appointment had the information been available earlier, and/or the engagement leader believes the Office should consider withdrawal from an engagement, the engagement leader consults the assistant auditors general of the applicable audit practice, Legal Services (via assigned legal counsel, as applicable), and the Auditor General.

Guidance

AG

AAG of the applicable audit practice

Legal services

3045

Consult in accordance with OAG Audit 3081 if we are unable to agree to a change [in the terms of] to the [audit] engagement.

Guidance

Audit Services

3047

In the event that the entity refuses to provide a response to the solicitor‑client privilege letter, the team should contact Legal Services and Audit Services.

Guidance

Audit Services

Legal services

3081

It is also appropriate to consult regarding more commonplace situations. For example, it is important that the Office strives for consistency, to the extent considered appropriate, in such areas as terms of the engagement.

Guidance

Audit Services

1031

If matters come to the engagement leader’s attention, through the system of quality management or otherwise, that indicate that a member of the engagement team is in breach of relevant ethical requirements, the engagement leader, in consultation with the Internal Specialist, Values and Ethics, will

• evaluate information on the identified breach,
• determine the impact of the breach on the assurance engagement, and
• determine the appropriate action to be taken.

Guidance

Internal Specialist—Values and Ethics

1031

Auditors should have an understanding of the relevant ethical requirements, including those related to independence, to which the Office’s and the engagement are subject and to fulfill their responsibility in relation to those relevant ethical requirements. Various information, communication and resources help assist the engagement team in understanding and fulfilling relevant ethical requirements applicable to the nature and circumstances of the audit engagement.

Internal specialist, Values and Ethics provides consultation on matters related to relevant ethical requirements

Guidance

Internal Specialist—Values and Ethics

1031

When a threat to the relevant ethical requirements is identified the engagement leader should evaluate its significance, in consultation with the Internal Specialist, Values and Ethics.

Guidance

Internal Specialist—Values and Ethics

1031

Where a threat to compliance with the relevant ethical requirements has been identified, or when in doubt, individuals should consult with senior engagement personnel or the Internal Specialist, Values and Ethics. The Internal Specialist, Values and Ethics, performs an objective review of the safeguards and actions proposed to eliminate or reduce a threat to relevant ethical requirements. Senior engagement personnel, in consultation with the Internal Specialist, Values and Ethics, evaluates the significance of identified threats.

Guidance

Internal Specialist—Values and Ethics

3031

If the engagement leader has an exception to disclose, the engagement leader should identify safeguards in cooperation with the Internal Specialist, Values and Ethics and sign the exception report. If an assistant auditor general has an exception to disclose, he or she should consult the engagement leader and Internal Specialist, Values and Ethics.

Guidance

Internal Specialist—Values and Ethics

3031

Where safeguards are not available to reduce the threat or threats to an acceptable level, the engagement leader consults the Internal Specialist, Values and Ethics concerning eliminating the activity, interest, or relationship creating the threat or threats, or refusing to accept or continue the engagement, if possible, under applicable laws and regulations.

Guidance

Internal Specialist—Values and Ethics

3031

If matters come to the engagement leader’s attention, through the system of quality management or otherwise, that indicate that a member of the engagement team is in breach of the independence requirements, the engagement leader, in consultation with the employee’s Principal (where different), and the Internal Specialist, Values and Ethics

• evaluates information on the identified breach,
• determines the impact of the breach on the assurance engagement, and
• determines the appropriate action to be taken.

Guidance

Internal Specialist—Values and Ethics

3081

It is also appropriate to consult regarding more commonplace situations. For example, it is important that the Office strives for consistency, to the extent considered appropriate, in such areas as expectations regarding compliance with authorities and other matters being considered for inclusion in the auditor’s report in response to our role as a legislative auditor.

Guidance

Audit Services

3081

Possible non‑compliance with authorities, laws and regulations. When instances of possible non‑compliance are identified, the engagement leader consults the Internal Specialist—Compliance with Authorities, Legal Services (via assigned legal counsel, as applicable) and Audit Services.

Guidance

Internal Specialist—Compliance with Authorities

Audit Services

Legal services

7511

As explained in OAG Audit 7513, in circumstances where we identify material instances of non‑compliance, the engagement leader shall consult with the Internal Specialist—Compliance with authorities and Legal Services.

Guidance

Internal Specialist—Compliance with Authorities

Legal services

7513
11015

When material instances of non‑compliance are identified the engagement leader shall consult with the Internal Specialist—Compliance with Authorities and Legal Services. [Nov‑2015]

Policy

Internal Specialist—Compliance with Authorities

Legal services

7513
11015

If we suspect that members of senior management are involved in a material instance of non‑compliance, and there is no higher authority at the client to whom we can report the issue, or if we believe that the report may not be acted upon or are unsure as to the person to whom to report, we shall consult the assistant auditors general of the practice and, where appropriate, the Internal Specialist—Compliance with Authorities, OAG Legal Services or the Internal Specialist for Fraud. [Jun‑2020]

Policy

AAG of the applicable audit practice

Internal Specialist—Compliance with Authorities

Internal Specialist for Fraud

Legal services

7514

Where specific circumstances lead the engagement leader to determine it is necessary to report the identified or suspected non‑compliance [with laws and regulations] to the attention of the appropriate Minister, he shall determine the way to communicate that information directly to the Minister after consultations with Legal Services, the assistant auditors general of the practice, as well as the Auditor General. [Nov‑2015]

Policy

AG

AAG of the applicable audit practice

Legal services

7514

If the engagement leader concludes that withdrawal from the engagement is necessary when the client does not take the remedial action that he considers necessary, even when an instance of non‑compliance is not material to the financial statements, the engagement leader shall consult the assistant auditors general of the practice, Legal Services, and the Auditor General. [Nov‑2015]

Policy

AG

AAG of the applicable audit practice

Legal services

11002
11014

All potential cases of reportable non‑compliance with authorities should be referred to the engagement leader for assessment and resolution. Such situations often involve legal interpretation of the relevant facts of the case, and will normally require consultation with the Internal Specialist—Compliance with Authorities and Legal Services.

Guidance

Internal Specialist—Compliance with Authorities

Legal services

11013

Whenever a possible instance of non‑compliance comes to the attention of the auditor, the following steps should be taken:

• consultations are carried out with the quality reviewer, if any.

Consultation with Office specialists may also be required. The particular specialist(s) that should be consulted will vary depending on the circumstances, but could include the Internal Specialist—Compliance with Authorities, Legal Services, Audit Services and the Internal Specialist for Fraud.

Guidance

Internal Specialist for Fraud

Audit Services

Quality Reviewer

Legal services

Internal Specialist—Compliance with Authorities

2102

In circumstances where using the short period benchmark indicates a level of materiality the engagement leader believes is inappropriate, consider consulting with Audit Services.

After consulting with the engagement leader consider consulting with Audit Services, if appropriate, in the following situations:

• If we consider it appropriate to exceed the upper ends of the rule of thumb ranges listed above or to use alternative benchmarks.
• When the determination of materiality levels is particularly complex or difficult.

Guidance

Audit Services

2102

In situations where an entity is very close to breaching a financial covenant we should specifically consider the impact on our SUM posting level and we would generally expect clients to adjust for all known errors on the SUM sheet. Consultation with Audit Services is highly recommended when posting unadjusted items may result in a debt covenant violation.

Guidance

Audit Services

2103

If the haircut chosen is 50 percent of overall materiality, the engagement leader is required to consult with Audit Services before proceeding with the proposed audit approach. [Jun‑2020]

Policy

Audit Services

2103

Adopt a benchmark that adds back a number of items to the profit‑before‑tax figure, then apply a higher than normal rule of thumb percentage, and apply a lower than normal haircut. Consulting with Audit Services may be appropriate under these circumstances.

Guidance

Audit Services

2104

If the alternative performance materiality amount for testing plan assets exceeds any one of the relevant rule of thumb percentages, consultation with Audit Services should be considered.

Considerations for determining performance materiality for testing plan assets are complex. Consult with Audit Services if you have any questions about calculating this materiality for your client.

Guidance

Audit Services

2107

Engagement leaders are reminded to consult with Audit Services when the aggregate of the haircut and expected misstatements for a particular sample population in the context of substantive tests of details is greater than 50 percent of overall materiality. Refer to the OAG Policy at OAG Audit 7044.

Guidance

Audit Services

Consider consulting Audit Services if we believe it may be appropriate to categorize multiple material FSLIs as ‘not significant' or in situations when the process of scoping and identifying significant FSLIs is particularly complex or difficult.

2324

Instances where a group engagement team is unsure whether or not they can be sufficiently involved in the work of a component auditor of a significant component address the requirements of CAS 600.30 (OAG Audit 2332), CAS 600.41 (OAG Audit 2341) and CAS 600.42(a) (OAG Audit 2362) shall involve the Engagement Leader and may be documented as a Significant Matter. If the uncertainty results from a concern that there are legal impediments on such involvement, consultation with Legal Services is recommended.

Guidance

Legal services

2326

Procedures for another OAG audit team

If the group auditor believes additional steps are necessary to evaluate a component auditor’s compliance with requirements, the group auditor may find it useful to contact Audit Services.

Guidance

Audit Services

2331

The group engagement team confirms that regulatory requirements are appropriately communicated to and understood by component auditors. For further guidance on specific component audit requirements, the engagement teams contact the component auditor or Legal Services.

Guidance

Legal services

2362

Evaluate the impact of restrictions on our ability to obtain sufficient appropriate audit evidence where access is restricted to component audit documentation. The group engagement leader may find it useful to consult in accordance with OAG Audit 3081.

Guidance

Audit Services

2372

If there is a significant difference in the level of request coming from a group auditor who is not from the OAG, or if a component auditor has any concerns regarding the information and/or confirmations requested, consultation with Audit Services is advised.

Guidance

Audit Services

2372

In some instances, a non‑OAG group engagement team may request the results of QR reviews from the OAG component auditors. The results of quality reviews are not to be shared outside the OAG. If the component auditor requires further guidance, consultation with Audit Services is recommended.

Guidance

Audit Services

2383

Shared services center audit

Local regulations may require obtaining additional documentation or communications from the group. […] Consider consulting with Audit Services when additional documentation or communications are requested.

Guidance

Audit Services

2384

We would generally not expect any other types of reports [Specified Procedures Report and Reasonable Assurance Report] to be used with regards to the shared services center audit work. Consider consulting with Audit Services when in doubt about which reporting approach would be most appropriate.

Guidance

Audit Services

3081

Example of circumstances consultation with Audit Services or others would be appropriate during an annual audit include information technology auditing.

Guidance

Audit Services

IT Audit

3102

Complex IT Environment

If the entity has a complex IT environment, IT Audit shall be involved in the audit, unless the engagement leader and the IT Audit jointly conclude that no specialized skills are required, beyond those possessed by the engagement team, to identify, assess and execute procedures that address the IT risks relevant to the audit. [Sep‑2022]

Moderately complex IT Environment

If the entity has a moderately complex IT environment, IT Audit shall be involved in the audit, unless the engagement leader concludes, with consideration of advice from IT Audit, that no specialized skills are required, beyond those possessed by the engagement team, to identify, assess and execute procedures that address the IT risks relevant to the audit. [Sep‑2022]

Where IT audit is involved in the audit:

1. The planned involvement of the IT Audit Team shall be adequately documented in the IT Audit Planning Memorandum and approved by the engagement leader and a member of the IT Audit Team.
2. The engagement leader shall ensure that a member of the IT Audit Team attends team meetings where the strategic audit approach or chosen sources of audit evidence are being discussed. [Sep‑2022]

Whenever the audit strategy relies on IT dependent sources of evidence for which the information therein cannot or will not be verified for reliability by the engagement team, the IT Audit Team shall be involved in assessing the operating effectiveness of relevant IT general controls that support the IT dependent sources of evidence. [Sep‑2022]

Policy

IT Audit

Similar to assessing the complexity of the IT environment (OAG Audit 5034) we may consider involving IT Audit when identifying IT applications and other aspects of the IT environment that may be subject to risks arising from the use of IT. IT Audit involvement could range from consulting, to coaching or completing parts of this work to support the engagement team in making these judgements.

Consider a formal consultation IT Audit when a material cybersecurity incident has occurred

2042

Due to technical knowledge needed to access and analyze data, these procedures are normally performed by Data Analytics specialists. Consult Data Analytics specialists when planning to use detailed data or perform CAATs as part of audit procedures.

Guidance

Data Analytics & Research Methods

Data Analytics & Research Methods

3103

Examples of involvement—Consulting

• Advise on tax risks related to the industry (this is in the nature of an informal consultation rather than a consultation in accordance with CAS 220 Quality Control for an Audit of Financial Statements and OAG Audit 3081).
• Advise on possible new tax risks based on changes in the entity’s business since the prior year.
• Advise on the appropriate tax treatment for difficult, sensitive, or contentious issues in areas drawn to the tax specialist’s attention by the core assurance team (this is likely to be in the nature of a formal consultation requiring a specific documentation and approval approach OAG Audit 3081).

Guidance

Others

3081

The engagement leader shall consult the internal specialist for fraud, and Legal Services when reasonable suspicions cannot be dispelled or where the entity has mishandled an identified instance of wrongdoing and fraud.
[Jun‑2020]

Policy

Internal Specialist for Fraud

Legal services

5505

If uncertain about a judgment concluding that it is appropriate to rebut the significant risk of fraud in revenue recognition, consider consultation with Audit Services.

Guidance

Audit Services

5510

If the integrity or honesty of management or those charged with governance is doubted, we shall consult with the assistant auditors general of the applicable practice and the Internal Specialist for Fraud. [Jun‑2020]

Policy

AAG of the applicable audit practice

Internal Specialist for Fraud

5510
11023

When our work indicates that fraud has or may have taken place, the matter shall be reported to the engagement leader immediately. The engagement leader shall consult with the assistant auditors general of the applicable practice, the Internal Specialist for Fraud and Legal Services. [Jun‑2020]

Policy

AAG of the applicable audit practice

Internal Specialist for Fraud

Legal services

5510

If we believe the client should consult its legal counsel or other specialists about disclosure obligations and other implications, and the client will not so consult, we shall consult with the Internal Specialist for Fraud or Legal Services about the matter in particular whether disclosures concerning contingent liabilities or other matters shall be included in the financial statements or be referred to in our audit report. [Jun‑2020]

Policy

Internal Specialist for Fraud

Legal services

5512

Before discussing matters relating to possible fraud with parties outside the entity, the engagement leader shall consult Legal Services, as potential conflicts with our ethical and legal obligations for confidentiality may be complex. [Oct‑2012]

Policy

Legal services

11014

When a situation of non‑compliance with authorities may indicate potential fraud, the Internal Specialist for Fraud should be consulted.

Guidance

Internal Specialist for Fraud

1112

If entity original documents cannot be returned, team members consult Legal Services.

Guidance

Legal services

1192

In rare circumstances where the engagement leader may determine that there are legal or other reasons to retain original paper documentation. In such cases, the engagement leader should consult with Legal Services.

Guidance

Legal services

7053

Restrictive language
We are not expected to make determinations as to the legal implications of the restrictions but may need to consult Audit Service as necessary to determine the impact of such restrictions on the reliability of the confirmation response as audit evidence.

Guidance

Audit Services

7054

Considerations When Using CCI’s Service
Consider consulting Audit Services if any issues are identified with regards to considerations above.

Guidance

Audit Services

Preparing legal confirmations

Generally, a threshold should only be used if there are a significant number of claims or possible claims. Engagement teams need to apply professional judgment when determining the threshold, but the threshold should be set between SUM posting level and performance materiality and applied based on the potential claim amount. Engagement teams should consult with Audit Services if they are any questions on the applicability of the threshold.

7043.1

When a test is rejected attempt to quantify the error and then discuss the cause and potential impact with the entity, and ask the entity to correct the situation. After the entity corrects the identified problem, we can retest the population and, if we find no exceptions, we accept the test results. Once the entity has corrected the problem, we would expect zero exceptions. Where the entity refuses to correct the problem, consult in accordance with OAG Audit 3081.

Guidance

Audit Services

When applying accept‑reject testing to populations fewer than 200 items the sample sizes as shown in the table below are applied. These sample sizes are minimum sample sizes to obtain low assurance. If a higher level of assurance is required test more than the minimum number of items. Judgment is required to determine the appropriate sample size. In such instances consider consulting with the Internal Specialist—Research and Quantitative Analysis.

7044

On engagements where we believe statistical sampling is the preferred approach, consider consulting the OAG Internal Specialist, Research and Quantitative Analysis.

Guidance

Internal Specialist—Research and Quantitative Analysis

7044

In some cases where a high proportion of misstatement is expected or observed, it may be necessary for the entity to correct errors to reduce the error rate or to perform testing that can be audited to provide the necessary evidence. If this is the case, consider consultation with the OAG Internal Specialist, Research and Quantitative Analysis.

Guidance

Internal Specialist—Research and Quantitative Analysis

7044

Where the aggregate of the haircut and the expected misstatements for a particular sample population is greater than 50 percent of overall materiality, the engagement leader is required to consult with Audit Services before testing the population in question.
[Jun‑2020]

Policy

Audit Services

7044.1
7044.2

Consult Audit Services when the aggregate of the haircut and the expected misstatement for a particular sample population is greater than 50 percent of overall materiality.

Guidance

Audit Services

7044.1

It is recommended to have management review and correct the expected errors in the population so that, if sampling is still considered the appropriate strategy, the estimate of tolerable misstatement will be less. If it is not possible to have the client correct the data and sampling is the only option, we may be able to use statistical sampling rather than non‑statistical sampling approach.  In such cases, consult with the internal Specialist, Research and Qualitative Analysis.

Guidance

Internal Specialist—Research and Quantitative Analysis

7044.2

Audit teams are encouraged to consult with the OAG Internal Specialist, Research and Quantitative Analysis when performing DUS sampling using IDEA.

Guidance

Internal Specialist—Research and Quantitative Analysis

Should you wish to pursue a dual‑purpose testing strategy using statistical sampling, consider consulting with the Internal Specialist—Research and Quantitative Analysis.

Possibly, consider contacting the Internal Specialist—Research and Quantitative Analysis to ensure that preference is not given to higher dollar sampling units 

Guidance

Internal Specialist—Research and Quantitative Analysis

7073.3

Determine Audit Approach If we decide that we cannot obtain sufficient appropriate audit evidence over the estimate using one or more of these three approaches, we assess the impact on our risk assessment, audit plan and audit report and consider consulting Audit Services.

Guidance

Audit Services

7073.5

Auditing Assumptions Used in Discounted Cash Flow Models
Discount rate
The equity risk premium may, in some cases, also need to be adjusted for the low risk free rate environment to reflect the fact that the risk of making equity investments has not decreased to the extent implied by falling sovereign yields. […] Consider consulting the financial instruments internal specialist when in doubt.

The discount rate used in the Value in Use (VIU) calculation needs to be pre‑tax and reflect current market assessments of the time value of money and any risks specific to the asset not already adjusted for in the forecasted cash flows. […] Consider consulting financial instruments internal specialist when in doubt.

Guidance

Financial Instruments Specialist

Consideration when using third party information sources

Consideration would be given to consulting with the Financial Instruments Specialist when determining the impact of such events on valuations and related disclosures; and

Consensus pricing sources

Consider consulting with the Financial Instruments Specialist before undertaking any related work on financial instruments.

Limited access to underlying valuation information from pricing sources

Consider consulting with the Financial Instruments Specialist in these situations.

1022

Consultation with Audit Services may be required in situations where engagement teams conclude that a CAS requirement or objective cannot be met.

Guidance

Audit Services

9044

Financial statements are not amended by management. Under certain circumstances, a withdrawal from the engagement is appropriate. Consult in accordance with OAG Audit 3011.

Guidance

Audit Services

7521

When an entity is in a situation that may cast significant doubt on its ability to continue as a going concern, the engagement leader considers, after consultations with Legal Services and Audit Services, whether the situation should be brought to the attention of Parliament and whether it should be reported as an emphasis of matter paragraph, a qualified opinion, an adverse opinion or as an “other matter” in the auditor’s report.

Guidance

Audit Services

Legal Services

7524
7525

It will often be desirable to consult with others, including Legal Services and other specialists in situations where going concern issues exist, in order to better understand prevailing economic or industry conditions or to evaluate circumstances relevant to the entity.

Guidance

Legal services

Others

7525

If you are unsure whether going concern or liquidity disclosure is required, engagement teams are reminded that a consultation with Audit Services is required in cases where the engagement team identifies events and conditions that are indicative of uncertainty about the entity’s ability to continue as a going concern whether or not going concern note disclosure may be required.

Guidance

Audit Services

9054

If difficulty encountered in obtaining management representations, consultation with Audit Services may be appropriate.

Guidance

Audit Services

9056

Doubt as to the reliability of management representations and requested written representations not provided. Consider if consultation in accordance with OAG Audit 3081 is appropriate.

Guidance

Audit Services

8036

If we become aware of material misstatements after the financial statements were issued, consult with Audit Services.

Guidance

Audit Services

9014

If we believe that management has deliberately created misstatements in the financial statements and elects not to correct them on the basis of materiality, the engagement team should consult in accordance with OAG Audit 3081.

Guidance

Audit Services

9015

The engagement leader should consult in accordance with OAG Audit 3081 if he or she encounters any of the following circumstances:

1. An entity insists on us allowing Cumulative Uncorrected Audit Misstatements (CUAM) assessed under the rollover method to increase relative to the CUAM at the end of the preceding year.
2. An entity has decided to reduce or eliminate the CUAM over a period of time, with a resultant material impact on the financial statements.
3. For a commercial entity, the CUAM is greater than 5 percent of equity, or the net uncorrected misstatements for the period are greater than 5 percent of income.
4. For a not‑for‑profit entity organization, the CUAM is greater than 5 percent of net assets, or the net uncorrected misstatements for the period are greater than 5 percent of total revenue or total expenses.

Guidance

Audit Services

9015

If the Probable Overall Misstatement is greater than 75 percent of overall materiality, the engagement team must consult with Audit Services. [Jun‑2020]

Policy

Audit Services

9015

If engagement teams are considering changing from the Rollover method to the Iron curtain method or vice versa, they must consult with Audit Services.

Guidance

Audit Services

9015

We may consider consulting Audit Services if we determine that there is a risk that the CUAM may become material to equity in subsequent years.

Guidance

Audit Services

9015

Audit teams shall consult Audit Services when previously undetected prior period errors are identified in draft financial statements, and these errors meet the following criteria:

• greater than 50 % of overall materiality; or
• less than 50 % of overall materiality but planned to be presented in the financial statements as a correction of a prior period error. [Sept‑2020]

Policy

Audit Services

9015

Audit Services informs and seeks advice from the Annual Audit and Special Examination Oversight Committee (AASEOC) on their proposed treatment for the prior period errors meeting any of the criteria listed in the policy above or those at the discretion of Audit Services.

Following completion of the receipt of AASEOC advice, Audit Services informs the audit team of Audit Services’ conclusion. Audit Services tracks all identified prior period errors for purposes of recommending root cause analyses, practice statistics and risk management.

Guidance

Audit Services

1173

Where new or additional audit procedures or new conclusions are drawn after the date of an assurance engagement report, consultation with the Auditor General and Quality Reviewer (where appointed) may be necessary.

Guidance

AG

Quality Reviewer

3081

Examples of circumstances where consultation with Audit Services or others would be appropriate during an annual audit include

• a proposed modified opinion, emphasis of matter paragraph or other matter paragraph in the Auditor’s Report.

Guidance

Audit Services

7021

If the engagement leader is unable to obtain sufficient appropriate audit evidence, he or she shall consult in accordance with OAG Audit 3081, to evaluate the impact on the assurance engagement report. [Apr‑2015]

Policy

Audit Services

8011
8013
8014
11015

Audit teams shall consult Audit Services when proposing a modified opinion on the financial statements or financial information, emphasis of matter paragraphs, or other matter paragraphs.

Policy

Audit Services

8011

Refer to CAS 700 Auditor’s Report template and consider consulting with Audit Services for guidance on referring to the applicable financial reporting framework in the auditor’s report.

Guidance

Audit Services

8011

In extremely rare circumstances, if compliance with the specific requirements of the financial reporting framework results in financial statements that are misleading, consider the need to modify the audit report depending on how management addresses the matter and how the financial reporting framework deals with such circumstances. Consult in accordance with OAG Audit 3081.

Guidance

Audit Services

8012
3081

The engagement leader shall consult with Audit Services on the draft English and French Auditor’s Reports, draft financial statements, and matters of significance related to the report. [Jun‑2020]

Policy

Audit Services

8013

In the first year a modification is proposed, Audit Services informs and seeks advice from the Annual Audit and Special Examination Oversight Committee of matters that may lead to a modified auditor’s reports and of a modified auditor’s report prior to their issuance. Then, Audit Services advises the audit team on the conclusion reached by Audit Services. The audit team informs the Auditor General of any proposed modified opinions prior to the finalization of the Auditor’s Report. These procedures do not apply in subsequent consecutive years should the modification for the same reason continue to be required.

Guidance

Audit Services
AASEOC
AG

9043
9044

For guidance on the issuance of a new audit report and dual dating, refer to CAS 560 and consult with Audit Services concerning the proposed wording of the auditor’s report and/or dating of the auditor’s report.

Guidance

Audit Services

9043

Events occurring after the date of the audit report but before the date of financial statements are issued

For guidance on the issuance of a new audit report, refer to CAS 560 for reporting requirements specific to the circumstances of the engagement and consult with Audit Services concerning proposed wording of the auditor’s report.

Guidance

Audit Services

9044

Events occurring after the financial statements have been issued

For guidance on amending audit report in such situations, refer to CAS 560 and CAS 706 as appropriate, and consult with Audit Services concerning the proposed wording of the auditor’s report.

Guidance

Audit Services

8015

The CASs permit us to include KAMs in audit reports on other audit engagements, for example in the audit of an entity where KAMs is not required by law or regulation or in the audit of special purpose financial statements. If asked by an entity to include KAMs in such an engagement, consultation with Audit Services is required.

Guidance

Audit Services

8015

Consult Audit Services and Legal Services if the audit team intends to report a key audit matter that will not be publicly disclosed by either management or those charged with governance. [Jun‑2020]

Policy

Audit Services

Legal Services

8015

Consult Audit Services and Legal Services if the audit team does not intend to report a key audit matter because the audit team has determined the adverse consequences are reasonably expected to outweigh the public interest benefits or when law or regulation precludes disclosure of a key audit matter. [Jun‑2020]

Policy

Audit Services

Legal Services

8015

If an audit of an entity where CAS 701 is applied resulted in a determination that there are no KAMs to be communicated, consider consulting with Audit Services.

Guidance

Audit Services

9043

Financial statements are not amended as a result of subsequent events. Our actions will depend on our legal rights and obligations; accordingly, consider consulting with Audit Services and Legal Services.

Guidance

Audit Services

Legal services

3081

Certain significant matters are brought to the attention of the Auditor General before the signing of the Auditor’s Report, even when the Auditor General has delegated signing authority. Consultation with the Auditor General on these significant matters may be directed by Office policy; however, it is also a matter of professional judgment. The engagement leader shall assess if significant matters have the potential for broader implications to the Office and our audit practices and consult the assistant auditors general of the practice and the Auditor General as appropriate.

Guidance

AG

AAG of the applicable audit practice

11023

Office policy requires the audit team to consult when dealing with significant, complex, unusual or unfamiliar issues, contentious matters or other matters requiring specialized knowledge or experience. “Other matters” generally meet all of these criteria and, accordingly, there should be extensive consultation within the Office. At the early stages of evaluating potential “other matters,” consultation would normally be expected with:

• the Quality Reviewer, if applicable;
• Legal Services;
• Audit Services;
• the Internal Specialist‑Compliance with Authorities; and
• any other relevant Internal Specialists (for example, the Audit Principal responsible for the annual audit of the Public Accounts of Canada, or the Internal Specialist for Fraud).

Guidance

Internal Specialist—Compliance with Authorities

Internal Specialist for Fraud

Audit Services

Quality Reviewer

Legal Services

11024

There should be consultation between the audit team and the Audit Services as the “other matters” paragraph is being drafted.

Guidance

Audit Services

11024

Where the team believes that it is necessary to include specific management representations related to the “other matter”, the appropriate wording should be developed in consultation with Audit Services.

Guidance

Audit Services

11024

The engagement leader, in consultation with the Auditor General, should develop a strategy for engaging Parliament to examine any “other matter” we have reported.

Guidance

AG

1192
1193
2372

Granting access to audit information to third parties. Consultation with the Access to Information and Privacy (ATIP) Coordinator and with Legal Services should occur where circumstances warrant.

Guidance

Legal services

Access to Information and Privacy (ATIP) Coordinator

1193

Acknowledgement by Predecessor Auditor template and Successor Auditor Waiver Letter template. Consult with the assistant auditors general of the applicable practice and Legal Services where circumstances warrant.

Guidance

AAG of the applicable audit practice

Legal services

2214

Before presenting any information on risks involving senior management to those charged with governance, consult, if necessary, Legal Services.

Guidance

Legal services

2214

If the other accountant’s opinion differs from our views, based on the nature of the subject matter consult in accordance with OAG Audit 3081 before communicating with management or those charged with governance.

Guidance

Audit Services

3062

Where a quality reviewer has not been appointed and the engagement leader concludes one ought to be, the engagement leader consults with the assistant auditor general of Audit Services.

Guidance

AAG of Audit Services

3081
9061

When management has consulted other accountants about significant accounting and auditing matters, if the other accountant’s opinion differs from our views, the engagement team may consult, as appropriate, with Audit Services before communicating with management or those charged with governance.

Guidance

Audit Services

3081

When teams wish to consult external specialists. Typically, an external consultation would be coordinated by Audit Services.

Guidance

Audit Services

3081

Examples of circumstances where consultation with Audit Services or others would be appropriate during an annual audit include

• newly issued technical pronouncements;
• special industry accounting, auditing or reporting requirements;
• emerging practice problems;
• choices among alternative generally accepted accounting principles when an accounting change is contemplated;
• analytical techniques;
• disagreements between the entity and the audit team relating to matters discussed in the report.

Guidance

Audit Services

3081

It is also appropriate to consult regarding more commonplace situations. For example, it is important that the Office strives for consistency, to the extent considered appropriate, in such areas as

• accounting policies for similar transactions,
• office positions on issues that are conceptually similar.

Guidance

Audit Services

3082

Differences of opinion within the engagement team or with those consulted

The engagement leader may choose to seek advice from others in the Office such as other functional area specialists, including Audit Services. When applicable, the quality reviewer may be consulted; however, this consultation cannot compromise the quality reviewer’s ability to perform his or her role and to make objective evaluations.

Guidance

Audit Services

Quality Reviewer

6041

Use of service organizations

We may wish to consider the need for further support from a specialist in accounting or auditing if the level of risk associated with the use of the service organization is high, e.g., consider consulting with the Internal Specialist for Fraud. Equally, the complexity of the relationship between the entity and the service organization may require consultation with Legal Services to evaluate the implications of the arrangements.

Guidance

Internal Specialist for Fraud

Legal Services

9032

Financial statements review

The engagement leader shall submit for review to Audit Services draft financial statements assessed to present greater than normal risk. Consultation is not required for draft financial statements assessed as normal risk. [Jun‑2020]

Policy

Audit Services

9032

Use of financial statements disclosure checklists

Checklists are general in nature and do not purport to be complete in all respects. In case of unclear, higher risk or complex circumstances consider consulting Audit Services and document the results of this consultation.

Guidance

Audit Services

11031

Auditing executive and board compensation, and travel, hospitality, conference and event expenditures

Consultation with internal specialists such as Human Resources Specialist, Internal Specialist for Fraud and Internal Specialist for Compliance with Authorities may be appropriate in certain circumstances.

Guidance

Human Resources Specialist

Internal Specialist for Fraud

Internal Specialist for Compliance with Authorities

8034
8035

Consult with Audit Services in accordance with OAG Audit 3081 as appropriate, if revision of the other information is necessary and the entity refuses to make the revision. [Jun‑2020]

Policy

Audit Services

8034
8035

Consult with Audit Services and Legal Services in accordance with OAG Audit 3081 as appropriate, if the audit team has a material disagreement with those charged with governance because our report is to be included in a document that contains materially misstated information. [Jun‑2020]

Policy

Audit Services

Legal Services

8034

Consider consulting with Audit Services when unable to conclude whether a material inconsistency or misstatement of the other information exists.

Guidance

Audit Services

2080

Consultations may include those with Legal Services (via assigned legal counsel, as applicable) on, for example, (a) Cabinet confidences and secret documents; (b) personal information or confidential business information; and (c) solicitor-client privileged information provided by entities’ legal counsel or by the Office Legal Services.

Guidance

Legal Services