June 2025
Greetings,
Now that we have hit the end of June, it is a natural time to pause, take an opportunity to reflect, recharge, and reset. This month’s update highlights key developments, including the newly approved Revised CAS 570 – Going Concern, updates to CAS 240 on fraud, and progress on the Audit Evidence and Risk Response Project impacting CAS 330, CAS 500, and CAS 520. I’ve also included a collection of articles to help you unwind, from slowing down and resetting to showing appreciation and having fun. Take this time to rest, you’ve earned it. Read on…
Revised CAS 570 Approved: New requirements on Going Concern
Revised CAS 570 has been approved. The new requirements will apply for periods beginning on or after December 15, 2026. Key updates include earlier and more robust risk assessments, an extended minimum evaluation period (at least 12 months from the date the financial statements are authorized for issue), and a more thorough evaluation of management’s assessment, even when no indicators of doubt exist.
What you will need to pay special attention to, besides the enhanced requirements, is the fact that the audit opinion will change. A new paragraph regarding the going concern assumption is now always required, not just when there is a material uncertainty. There are differences between what is required in a listed entity versus a private company, but both are changing, so pay attention.
The new standard is in the Handbook so check it out on Knotia at www.knotia.ca. Further guidance on the revised standard can also be found here…
- FRAS Canada CAS 570 Project update
- Standards in Focus: revised CAS 570, Going Concern (CPA Ontario)
- IAASB Fact Sheet (IAASB, 2025)
- FAQ: Reporting Going Concern Matters in the Auditor’s Report (IAASB, 2025)
Revised CAS 240: Auditor’s Responsibilities Related to Fraud
Revised CAS 240 was expected to be approved at the June meeting of the AASB. I just checked the fraud project page on their website but no update has been posted. The revised standard has been approved by the IAASB so we know this will be approved in Canada. I will save the details on the changes until it has been approved.
Audit Evidence and Risk Response Project
The audit evidence and risk response (AE&RR) project has officially launched, both at the international level and here in Canada. The ongoing project targets updates to CAS 330 (Auditor’s Responses to Assessed Risks), CAS 500 (Audit Evidence), and CAS 520 (Analytical Procedures). It builds on prior efforts from 2019–2024 and aims to better integrate how auditors gather and assess evidence, design responses to risk, and apply professional judgment and skepticism.
The IAASB plans to issue an Exposure Draft later this year and the AASB will follow suit shortly thereafter. I am on the AE&RR Advisory Committee, so I have a first-hand view of the discussions being held. The discussions are focused on how the business environment is experiencing rapid technological developments, which are affecting the nature, volume, and sources of information used by entities in their operations and by auditors as audit evidence. A priority of all involved is ensuring the revisions are pragmatic and aligned with real-world auditing practices. I’ll definitely keep you updated as this project progresses… and will gather your insights when the time is right.
READ IAASB PROJECT PAGE INFORMATION HERE
READ FRAS CANADA PROJECT PAGE INFORMATION HERE
Relax, Recharge and Rest
These past few months have been very busy, there year more than others. From everyone I have connected with in the past while, it seems June 30 deadlines brought more pressure than before. With that in mind, there’s all the more reason to take time to decompress and recharge your batteries. Linked here are a few articles that I really like about recharging. The tips are very simple and quite straightforward, in fact, nothing we have not heard of before. However, they serve as a good reminder of what we can do for ourselves.
RECHARGE YOUR CREATIVE THINKING WITH REST
Summer Slowdown
Continuing the theme from above, slowing down is also a time to take a step back and evaluate your business and goals. By taking advantage of the slower summer season, you can ensure that you’re well-rested and well-prepared for the busy fall season ahead. This is a great article on key considerations for your firm.
Professional Development
As summer sets in, it’s also a great time to start planning your firm’s fall professional development. Whether you’re looking to strengthen technical knowledge, enhance staff training, or build leadership skills, now is the time to get ahead. If you’re considering bringing me in to support your team’s PD this fall, I encourage you to reach out soon—my schedule is filling up quickly, and I’d love to help you build a customized program that meets your firm’s needs.
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As we step into the slower pace of summer, we hope this month’s update equips you with both the technical insights and personal reminders needed to recharge. Whether you’re catching up on new standards or simply enjoying a well-deserved break, take this time to reflect, reset, and come back refreshed. We’ll be back next month with more updates to support your continued growth and success. In the meantime, remember I am always here to help you save time and achieve peace of mind. Reach out anytime.
And…. Happy Canada Day to all!!!
Best regards,
Kirsten S. Albo, FCPA, FCA
President