April 2025
Greetings,
It’s April 30… and you made it. Another tax season in the books!! As the dust settles, the focus naturally shifts from filing deadlines to looking ahead. But first, it is important to take the time to bounce back and recharge from the intense work effort of the past while. This month’s update includes a handful of insightful reads on how to rest, reset, and reenergize after an intense period of work. Looking ahead, the rhythm of work then changes. The months to come will call for planning your assurance engagements, organizing your teams, and staying sharp on evolving technical standards. This month’s newsletter is here to support that shift, starting with you. Read on…
Revised CAS 600 Group Audits in Effect
Revised CAS 600, which is now in effect, provides updated guidance on the audit of group financial statements, including the work of component auditors. The revision emphasizes the importance of the group auditor’s responsibilities for overseeing the work of component auditors and ensuring sufficient and appropriate audit evidence is obtained. Your first step is to consider if you have a group audit. There is the obvious situation when component auditors are involved. However, many auditors have been overlooking the fact that they are conducting a group audit. For example, if you have a material equity pick-up, that is a group audit; if you have consolidated statements, even if you are the only auditor, that is a group audit.
CPA Canada has issued A Guide to Audits of Group Financial Statements and CAS 600 to help you understand and apply requirements of CAS 600 when you are involved in a group audit, whether as a group auditor or a component auditor for the group audit engagement.
READ CPA CANADA CAS 600 IMPLEMENTATION GUIDE HERE
Upcoming Standards Changes
There are so many changes coming. I will be providing details of all of these and more in the coming months, but here are the few that are imminent…
- The revised standard on Going Concern (Revised ISA 570) was approved by the IAASB in December 2024. Revised CAS 570 on the same topic is expected to be approved at the June meeting of the AASB.
- The revised standard on Auditor’s Responsibilities Related to Fraud (Revised IAS 240)was approved by the IAASB in March 2025. Revised CAS 240 on the same topic is expected to be approved at the June meeting of the AASB.
- The exposure draft on Compilations of FOFI, CSRS 4250 was issued back in September 2024 and is expected to be approved soon.
In addition, there are many other ongoing projects that will impact you in the coming years including…
- Audit Evidence and Risk Response Project. This project will result in changes to CAS 330 Auditor’s Response to Assessed Risks, CAS 500 Audit Evidence and CAS 520 Analytical Procedures. There is currently an Advisory Group of the AASB working on this project… And yours truly is a member of this group!! There will come a time where I will be reaching out to gather your input so stay tuned on this one.
- Audits of LCEs. As you know, Canada did not adopt the LCE standard however the discussion continues. The AASB is committed to supporting audits of LCEs and addressing scalability and proportionality within the Canadian Auditing Standards. There is a new working group that has been formed to address these issues. I personally know a couple of the members and really trust them to be practical. They are very smart auditors that have feet on the ground.
- Use of Experts. There are narrow scope amendments to the requirements of working with an expert and assessing their competence, capabilities and objectivity. These changes will impact CAS 620, CSRE 2400 and CSRS 4400, but the changes are not expected to be significant.
- Sustainability Requirements. The AASB issued an Exposure Draft CSSA 5000 General Requirements for Sustainability Assurance Engagements back in September 2023. Comments are still being deliberated but expect this standard to be issued sometime in 2025.
- Technology in engagements. This is an ongoing topic of discussion but is very much at the gathering information stage.
Check out all the ongoing projects…
The Art of Monotasking
This is one of the best articles I have read in a long time to help me get back on track when I have a lot of things to get done. I thing I can do everything at once, but I can’t… and I shouldn’t. This article reminded me that focusing attention on only one task at a time is the secret to performing tasks correctly. In fact, science has shown that when people multitask, they become more easily distracted and less productive, score lower on tests for recalling information, and make more errors. The reason is simple: the brain cannot devote equal attention to multiple tasks that require high-level brain function.
Bouncing Back: How to Recoup After a Busy Season
This article introduces the “Take 5” method, encouraging professionals to take deliberate steps to reconnect with themselves post-busy season. It underscores the importance of self-care and setting boundaries to ensure a smooth transition back to regular routines. We need this to remind ourselves of the importance of bouncing back to then move forward.
Four Powerful Ways to Bounce Back
By now, you are probably noticing the theme of this month’s practice management topics, lol. This article was written by an FBI agent, not an accountant. But the idea of the “let-down effect” holds true for both. The article walks through four powerful ways to bounce back after an extended period of stress and hard work.
Path to Implementation: CSQM 1 Workshop
(Next Session May 15)
While the effective date for the design and implementation of your system of management has come and gone, I am still receiving many phone calls from firms about assistance on CSQM 1 implementation. Some firms have not yet implemented the requirements of the standard, and others have but encountered significant weaknesses after going through a practice inspection. No matter who you are and what stage you are at, I am here to help.
If you are still facing challenges in implementing the requirements of CSQM 1, you may want to join me in the upcoming workshop on May 15 where we design and implement your system of quality management in ONE DAY!! Yes, one day saving you 100’s of hours.
Join me?
CHECK OUT MY FREE BLUEPRINT IMPLEMENTATION VIDEO AND INFORMATION ON THE UPCOMING WORKSHOP HERE
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Another tax season in the books! Take a well-deserved break, and a moment to celebrate the hard work you’ve powered through and all that you have accomplished. And when you’re ready to ease back in, we’ll be here. Whether you’re organizing upcoming engagements, diving into technical updates, or just looking for a starting point, ASK KSA is ready to support you with practical tools, timely insights, and guidance that fits your workflow.
Remember, we are always here to help you save time and achieve peace of mind.
Best regards,
Kirsten S. Albo, FCPA, FCA
President