One more special update. You will have received an email from Knotia yesterday about the 2020 PEG release. This is so important I wanted to bring it to your attention and highlight a few key changes. Read on…
There have been two substantial updates to professional standards this year: CAS 540 Auditing Accounting Estimates and Related Disclosures and CSRS 4200 Compilation Engagements. The PEG 2020 update reflects changes to these standards as well as many other changes. See further details below about the release which will take place in two phases this year. The Practice Aids and Volume 1 are now available on Knotia. Volume 2, case studies and other content will be available in October. Highlights of the significant changes are:
Compilation Engagements, CSRS 4200:
- As a reminder, the standard is effective for compiled financial information for periods ending on or after December 14, 2021, with early application permitted.
- New practice aids are available. These include checklists, reports, and letters. You will want to consider what, if any, forms will be used in your practice.
- A new section was created for all resources related to the new compilation engagements standard. This includes a new chapter in Volume 1 (Chapter 45), new chapters in Volume 2 (Chapters 35 – 38).
- Stay tuned for training I will be putting on in September (dates to be determined shortly). The course will focus on implementation of the new standard and things you can do now, including developing an action plan between now and the effective date. The training will be an online live three-hour session (qualifies for verifiable CPD hours). Each session (several to be offered) will be limited to 10 participants to allow for interactive discussion and questions to help you save time and achieve peace of mind.
Practice Aids (Checklists):
- Before fully implementing the 2020 versions, you will want to ensure you understand the changes as bringing in the new form overwrites existing data. The What’s New Section goes through each form in detail outlining whether changes are Major, Moderate or Minor and what practice aids are new.
- Major changes have been made to various forms to include the new requirements from revised CAS 540, Accounting Estimates and Related Disclosures.
- Moderate changes also been made to the Financial Reporting Framework (FRF) forms to reflect the changes to the ASPE standards relating to Section 3856, Financial Instruments.
Volume 1 and 2:
- Updates in both volumes reflecting the changes made to CAS 540, Auditing Accounting Estimates and Related Disclosures.
- On Knotia, the introduction chapters have been separated out as a stand-alone section. Additionally, the volumes are provided as a PDF, making searching for individual topics easier.
Volume 3: Case Studies (new Section coming)
- Case studies have been reorganized to provide easy access to the material. Grouped by audit and review each case study includes written explanations along with the related filled-in forms
The details of the updates have been summarized by the PEG on Knotia in the What’s New Section. CLICK HERE to access Knotia (you will have to log in). I have also attached the What’s New document to this email to save you time so you do not have to go searching for it. If you have any questions about the implementation of the updated 2020 PEG forms, reach out at anytime. I am here to help. Enjoy the rest of the month!!
Kirsten S. Albo, FCPA, FCA