Reporting Implications of New Auditing and Accounting Standards. Webinar Presentation by: Ken Krauss Eric Turner

Transcription

1 Reporting Implications of New Auditing and Accounting Standards Webinar Presentation by: Ken Krauss Eric Turner

2 Topics Covered Today Background to the webinar Objectives Complex reporting issues Questions

3 Background Reporting on Financial Statements Under CASs The New Audit Reporting Model Under the CASs webinar in September # Reporting Guide The New Audit Reporting Model and Related Changes PICA/Ordre training courses

4 Objectives Summarize some recent changes to the reporting guide Highlight some reporting issues Improve your awareness of the CASs

5 Reporting Guide Changes Issue 5, August 2011: Review engagement report on first financial statements prepared in accordance with ASPE for 2011 Reports based on the requirements in CAS 710, Comparative Information Corresponding Figures and Comparative Financial Statements Q&A and Illustrative Report on CAS 805 Issue 6, October 2011: Auditor s reports on first financial statements prepared in accordance with not-for-profit accounting standards, pension plan accounting standards and public sector accounting standards Issue 7, in progress: Q&A on summary financial statements Q&A on supplementary information

6 CAS 710 Reports in the Guide Corresponding figures versus comparative financial statements Unresolved qualifications from the prior year Restated comparative information Misstatements discovered after the financial statements have been issued Same auditor versus predecessor auditor for prior year

7 CAS 710: Summary Required to consider matters affecting comparative information Required qualification on current period when unresolved matter affects comparability Possible to issue an unmodified opinion on balance sheet and a qualified opinion on statements of operations and cash flows Added complexity when there is a predecessor auditor for the prior year there is a change in accounting framework

8 Transition Reports Part I: IFRSs see Reporting Guide Part II: ASPE see Reporting Guide Part III: NPOs Part IV: Pension Plans Public sector accounting standards see Reporting Guide

9 Transition to Part III for NPOs Mandatory for years beginning on or after January 1, 2012 Required to present opening statement of financial position If reporting on current period only, additional paragraph indicating that comparative information is unaudited Donation qualification, if necessary

10 Transition to Part IV for pension plans Mandatory for years beginning on or after January 1, 2011 No requirement to present opening statement of financial position (but must apply retrospectively) If reporting on current period only, additional paragraph indicating that comparative information is unaudited

11 Single financial statements, elements accounts or items of a financial statement CAS 805, Special Considerations - Audits of Single Financial Statements and Specific Elements, Accounts or Items of a financial statement, applies Must also apply the requirements in all the CASs including CAS 700, and CAS 800 if appropriate Auditor required to evaluate whether the applicable framework is adequately referred to or described (CAS 700, paragraph 15) Framework often described as "Canadian GAAP". This creates challenges for management and the auditor

12 Summary Financial Statements CAS 810, Engagement to Report on Summary Financial Statements, replaced AuG-25 Complete set must be available to users without undue difficulty Required to determine whether the applied criteria are acceptable (para 6a) Established criteria presume acceptable If no established criteria, they need to be developed by management

13 Supplementary Information Inconsistency in practice Paragraphs 46 and 47 of CAS 700, Forming an Opinion and Reporting on Financial Statements If unaudited supplementary information cannot be clearly differentiated from financial statements, must be covered by auditor s opinion

14 Questions? CICA CAS Transition website ( Implications on dating of the auditor s report First-time reporting under ASPE guidance for auditors More guidance under development