April 2026
Greetings,
As we move further into the year, now is a great time for firms to shift their focus from heads down to thinking about the future. This month’s update highlights several topics that should be on every practitioner’s radar, including planning for cyclical file inspections under CSQM 1, anti-money laundering responsibilities, developments related to the revised going concern standard, and a significant standard-setting project that could shape the future of audit evidence and risk response requirements. One of the themes that runs through all of these topics is the importance of being proactive. Read on…
Revised CAS 570
It has been some time since I have included information about Revised CAS 570, Going Concern in my monthly update. Now is the time to start reminding you again about this upcoming standard, as it introduces significant changes to how auditors evaluate and report on going concern matters.
There are big changes coming that I want you to think about now. The revised standard places greater emphasis on risk assessment, requires auditors to evaluate management’s going concern assessment in all cases, and introduces enhanced reporting requirements, including a separate Going Concern section in the auditor’s report. Yes, the auditor’s report is changing… FOR ALL ENGAGEMENTS!!!!
For firms beginning to prepare for implementation, CPA Ontario’s “Standards in Focus” publication provides an excellent overview of the key changes and includes illustrative auditor reporting examples that demonstrate how reporting requirements will differ under the revised standard.
Audit Evidence & Risk Response Project Moves Forward
One of the projects that is particularly near and dear to my heart is the AASB’s work on the Audit Evidence and Risk Response (AE&RR) project.
At the international level, the IAASB is undertaking a significant revision of ISA 330, The Auditor’s Responses to Assessed Risks, ISA 500, Audit Evidence, and ISA 520, Analytical Procedures. These standards form the foundation of how auditors design procedures, obtain audit evidence, and evaluate the results of their work. Because the Canadian Auditing Standards (CASs) are based on the ISAs, any changes to these international standards will ultimately have implications for auditors in Canada.
I have the privilege of serving on the Canadian Advisory Group supporting the AASB’s involvement in this project. Next week, we have what promises to be a very important meeting as we review the near-final Exposure Drafts before they are released for public comment shortly thereafter (I have a lot of reading to do this weekend!!!). This represents a major milestone in the project.
The proposed revisions are intended to address the realities of today’s audit environment, including advances in technology, the increased use of automated tools and techniques, and the need for greater clarity around obtaining and evaluating audit evidence. Given the significance of these standards, this is a project that all auditors should keep on their radar.
If you are interested in learning more about the project and following its progress, I encourage you to visit the AASB project page below. This will be a topic I will be updating you lots on in the coming months.
READ THE AASB PROJECT PAGE SUMMARY HERE
Is It Time to Start Planning Your Cyclical File Inspections?
We are already partway through the year, and now is an excellent time to begin planning your monitoring activities under CSQM 1, including cyclical file inspections.
One of the most common challenges I see is firms waiting until late in the year to think about monitoring. By that point, schedules are tight, resources are stretched, and there is often little time remaining to properly complete inspections, investigate findings, perform root cause analysis, and implement remediation before the annual evaluation of the system of quality management.
Completed engagement inspections are one of the most valuable monitoring activities a firm can perform. They provide insight into whether policies and procedures are operating effectively, whether engagement teams are consistently applying professional standards, and where additional training or guidance may be needed. More importantly, they provide firms with an opportunity to identify and address issues before they become recurring deficiencies.
Several years ago, I wrote an article on monitoring and remediation that discussed the importance of viewing monitoring as more than a compliance exercise…. The message remains the same today: effective monitoring provides firms with valuable information that can be used to improve quality and strengthen firm performance.
As you plan the remainder of your year, consider whether your cyclical file inspections have been scheduled, who will perform them, and whether sufficient time has been allocated to analyze findings and implement corrective actions. Starting now will provide significantly more value than trying to complete everything during the final months of the year.
Are Your Anti-Money Laundering Responsibilities on Your Radar?
Anti-money laundering (AML) obligations continue to be an important area of focus for accounting professionals. While AML requirements may not affect every service a firm provides, it is important to understand when obligations apply, which activities may trigger reporting requirements, and how firms can identify potential risks.
CPA Canada has published a helpful guide outlining the anti-money laundering requirements that may apply to professional accountants, including practical information on client identification, record-keeping obligations, suspicious transaction reporting, and compliance considerations. As regulatory expectations continue to evolve, this resource serves as a useful reminder for firms to review their policies, assess whether AML requirements apply to the services they provide, and ensure team members understand their responsibilities.
Even if your firm has addressed AML requirements in the past, it may be worthwhile to revisit your processes and training to confirm they remain current and appropriate.
New ASK KSA PD Courses!!!
I am excited to announce that I am currently recording 10–12 brand-new ASK KSA Professional Development courses designed specifically for public practitioners and engagement teams.
These upcoming courses will focus on the technical topics auditors are asking about most frequently, such as use of a service organization (CAS 402), auditing inventory (CAS 501) and Going Concern (Revised CAS 570).
As with all ASK KSA PD courses, the goal is to provide training that is practical, engaging, and immediately applicable. Rather than simply reviewing the standards, these sessions will help you understand how to apply requirements in real-world engagements, strengthen documentation, and improve audit quality.
The new courses are expected to be released later this year, and I look forward to sharing additional details as they become available.
In the meantime, there is no need to wait until year-end to complete your professional development requirements. ASK KSA PD already offers a library of courses covering a variety of audit, assurance, and quality management topics to help you stay current while earning valuable CPD hours.
CHECK OUT CURRENT ASK KSA PD COURSE OFFERINGS HERE
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Thank you for taking the time to read this month’s update. As always, my goal is to provide practical insights and resources that help firms navigate professional standards and strengthen engagement quality.
And, on the other side of life, with summer now officially making its presence known (and the temperatures certainly reminding us!), I encourage you to take some time to enjoy the season. The profession is busy, deadlines never seem to disappear, and there will always be another file waiting on your desk. A little time away to recharge can be just as important as the work itself.
On my end, a good portion of the next month will be spent in front of a camera recording new ASK KSA PD courses. While I enjoy sharing knowledge and helping practitioners stay current, I can assure you that not every recording goes perfectly on the first take! Thankfully, I have an excellent videographer who will edit out my bloopers.
Until next month, enjoy the sunshine, make some time for yourself, and remember… I am always here to help you save time and achieve peace of mind. Reach out any time.
Best regards,
Kirsten S. Albo, FCPA, FCA
President