August 2025
Greetings,
Welcome to this month’s edition of my monthly update. While this month brings fewer new standard changes than we’ve seen earlier in the summer, it’s an important time to look ahead. Fall is traditionally when new guidance, practice inspection reports, and firm planning activities ramp up. In this issue, you’ll find highlights of upcoming technical changes, practical steps to strengthen your practice management processes, and professional development opportunities to help you stay ahead. Read on…
The Calm Before the Fall Standards Season
This month there are fewer new developments to report, as many of the major updates have already been covered in recent newsletters (such as the revised fraud and going concern standards finalized earlier this summer). That said, there are several important changes on the horizon. I’ll be providing more details on these over the coming fall months as the final materials are released and firms begin preparing for implementation.
What’s coming up this fall:
ASPE Section 3840 – Common Control Business Combinations
Final amendments clarifying accounting for reorganizations under common control are expected to be issued this fall.
Implications for SMPs: Firms assisting private enterprises with reorganizations will need to understand the new presentation options and ensure consistency in how comparative figures are handled. Training and internal guidance will likely be required.
ASPE Section 3041 – Agriculture
In 2025, the AcSB approved narrow-scope amendments to Section 3041 to address feedback on the application of cost and net realizable value models, as well as disclosure requirements.
Implications for SMPs: Firms working with agricultural clients should watch for the final wording of these changes, as they will affect how biological assets and agricultural inventories are measured and presented. Updated guidance will help clarify grey areas.
CPA Canada Handbook Updates
Revised CAS 240 Responsibilities Related to Fraud (highlighted in the July newsletter).and CAS 570 Going Concern (highlighted in the June newsletter) were recently approved and incorporated into the Handbook. Lots more guidance to come.
Implications for SMPs: Engagement teams should begin planning for implementation, including updating methodology, templates, and staff training to address the expanded responsibilities in fraud risk assessment and going concern evaluations.
Climate-Related Guidance under ASPE
Additional awareness documents are being rolled out highlighting how climate risks may affect ASPE financial reporting (e.g., impairments, lease accounting, economic dependence).
Implications for SMPs: Even if not explicitly required by ASPE, auditors will need to probe whether management has considered material climate-related risks, particularly in industries more exposed to environmental change or regulation.
CPA Canada & AICPA Guidance on AI Assurance
Further resources are expected on the role of CPAs in governance and assurance of artificial intelligence systems.
Implications for SMPs: While not yet a standard, this is an emerging advisory and assurance opportunity. SMPs may want to start building knowledge in AI-related risks, controls, and governance as clients adopt AI tools.
Practice Inspection Findings – Provincial Reports
Fall is the season when provincial CPA bodies begin releasing their practice inspection annual reports. These provide valuable insights into common deficiencies and areas where firms can strengthen audit and review file documentation.
Implications for SMPs: Stay tuned for the release of these reports over the coming months, as they will be an important resource in identifying emerging trends and reinforcing areas of professional judgment and documentation.
Turning Preparation into Peace of Mind
Just as technical standards are evolving, you can also take proactive steps now to ensure you and your staff are ready for the busy fall season. With practice inspection reports, updated standards, and new guidance on the horizon, fall is a natural time to pause, reflect, and reset processes.
Here are some practical actions firms can begin implementing:
Refresh Methodologies and Templates
Make sure your firm’s templates are current. Rolling forward engagement files now, rather than waiting until work begins, helps confirm that staff are using the latest versions of required forms and checklists. This simple step saves time and reduces the risk of missing updates later.
Plan Targeted Training
Get ahead of year-end CPD requirements by scheduling fall sessions now. No need to panic closer to the December 31 deadline. Short, focused sessions can be effective to keep staff sharp and aligned without the year-end crunch. Planning also helps you and your staff take courses that are relevant and reliable, not just to “check-the-CPD-box”.
Anticipate Practice Inspection Reports
With provincial inspection reports due out this fall, use the lead time to revisit last year’s findings from both last year’s reports and your own internal inspection findings.
Cyclical File Inspections
Speaking of internal inspection findings. Now is also a good time to plan for these required inspections. Performing the inspections in the fall allows you to incorporate any findings into your upcoming engagements. Pay special attention to linking procedures to identified risks and ensuring professional skepticism is clearly demonstrated. Remember, when you have findings, CSQM 1 requires a root cause analysis so you can plan and implement remedial actions.
Engage Clients Early
Communicate upcoming changes that may affect financial reporting and audit procedures. Fall is an ideal time to obtain early updates on changes in a client’s business that may impact your engagement. Reach out to your client, a quick phone call is often all that is needed. Setting expectations now helps avoid last-minute surprises. And, why not perform client continuance procedures and send engagement letters now to get those activities out of the way.
Resource and Schedule Planning
Assess staffing needs for fall engagements and identify potential pressure points. Consider external support or file consultations where gaps are likely. This also includes considering where you might need an expert to be involved in the engagement. Reach out now to ensure you are in their schedule.
Professional Development: Plan Ahead, Choose the Right Course
As noted above, it’s not just about meeting CPD requirements, it’s about choosing professional development that adds real value to your firm. Whether you prefer live sessions, virtual workshops, or recorded on-demand learning, planning now helps avoid the year-end scramble and ensures you’re focusing on the skills that matter most.
There are many great PD sessions out there, including ASK KSA PD. We offer a wide range of courses designed specifically for SMPs. You can explore the full offering here: ASK KSA PD Courses.
ASK KSA Course of the Month: Strengthening Communications with Clients
Effective client communication sets the stage for a successful engagement, and fall is the perfect time to start the conversation. This course provides practical strategies to improve interactions, anticipate changes in your clients’ businesses, and set clear expectations early. By reaching out now, you can smooth the path for year-end engagements and eliminate last-minute surprises.
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Fall always feels like a fresh start, new routines, shifting priorities, and the start of another busy season. Taking a bit of time now to update templates, plan training, and check in with clients can make the months ahead feel much smoother. In the meantime, don’t forget to carve out some time for yourself too, after all, summer is not quite technically over!! I hope you enjoy a nice, relaxing long weekend.
Reach out any time. Remember, I am always here to help you save time and achieve peace of mind.
Best regards,
Kirsten S. Albo, FCPA, FCA
President