August 2021 Update
Greetings,
My plan over the next few weeks is to stop and take stock of the upcoming fall and the work that comes along with that. I find that if I take the time to plan and get organized it helps me in so many different ways. I can focus on the important but not urgent tasks that are in my “to-do” list. And ironically, the more I plan, the more time for spontaneity and unexpected events. With that in mind, there are a number of topics in this month’s update that will help you plan. Read on…
Exposure Draft: Audits of Less Complex Entities
This is a topic you will hear much about in the coming months as it has the potential to significantly impact the profession. IFAC released a good summary of the exposure draft as it lays out a broad description of each part of the proposed standard.
Canada’s discussion paper on this topic will be released September 10 and I will be sending a special update on this topic. In conjunction I will be hosting a few live sessions on this topic to update you on what is being proposed as well as to gain your views to bring back to the Advisory Group discussions.
In the meantime, the article is a good, albeit long, read on helping you understand the proposed standard and how it may impact your firm.
Guide for practitioners: Roadmap to the CPA Canada Handbook Assurance Tool
Many times the engagement to be performed is obvious – an audit, review or compilation engagement is required. Other times is is not as clear what type of assurance or other engagement is needed.
CPA Canada has issued guidance in the form of an interactive tool which will ask a services of branching question to lead you toward the appropriate standard for the required engagement. The have issued a guide to be used in conjunction with the tool, if needed.
Preparing for Back to the Office Mentally
Many of my clients have been working in the office, although at reduced capacity. Now that fall is upon us, summer holidays are almost over and work is picking up, it is the time to think about returning to the office at a more “normal” level. For some staff, it is not a big deal but for others, coming back to the office causes anxiety which may permeate throughout the office. The good thing is you can take action to help staff prepare mentally for coming back to the office. CPA Canada has released an interesting article on workplace routines to help ease the transition of returning to the office. Simple but practical tips make this article worth the read.
Why it is Important to Establish Ethics within your Company
Do you know that 1 out of 3 employees feel pressured to be unethical at work? Adding a company code of ethics policy is the first step, but in order to run an ethical company these policies need to be shown to staff by upper management, polices need to be enforced and become a part of everyday operations.
Read about these 3 reasons on why you should establish a culture of ethics in your company.
Key Factors to Consider in Designing Partner Compensation Models
Over the past few months, I have held conversations with several firms about partner compensation models. It is an interesting topic as what once might have worked before may not work now due to growth of the firm, the admittance of new partners and retirement of others. It can be a complicated exercise to find the right model that works for your firm and is something that should be looked at every once in awhile. Included within their “Guide to Practice Management for SMPs” is a module on this topic that illustrates the benefits and drawbacks of different types of models. If your firm is reviewing compensation models, this is valuable information to add to the discussions.
Path to Implementation: CSRS 4200
There are many upcoming standard changes but none more imminent, or potentially impactful, than the new Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. It is effective for period beginning on or after December 14, 2021. If you haven’t started your implementation process, the time to start is now as there are many business decisions to be made. The earlier you start your process, the more efficient you will be. ASK KSA PD offers an online on demand course to help you through the implementation process.
PD Requirements
With fall almost upon us, it is a good time to review professional development requirements to refresh your memory about CPD requirements and develop a plan from now until the end of the year so you are not scrambling in December.
The simple overview is you are required to complete a minimum of 20 hours of CDP annually including a minimum of 10 hours of verifiable learning activities however pay attention as sticking to the minimums only will not be enough to meet the three-year rolling requirements. For the rolling three-year cycle you are required to complete a minimum of 120 hours of CPD including a minimum of 60 hours of verifiable learning hours of which 4 hours should relate to ethics.
This three year cycle covers the period from January 1, 2019 to December 31, 2021.
CPD Requirements information:
British Columbia – BC REQUIREMENTS
Alberta – AB REQIREMENTS
Saskatchewan – SK REQUIREMENTS
Manitoba – MB REQUIREMENTS
Ontario – ON REQUIREMENTS
Quebec – QC REQUIREMENTS
Nova Scotia – NS REQUIREMENTS
New Brunswick – NB REQUIREMENTS
Newfoundland and Labrador – NL REQUIREMENTS
Prince Edward Island – PEI REQUIREMENTS
I always love this time of year as I start on new projects with clients and plan for the fall. This year is especially exciting as there are so many new and upcoming standards. My focus is to understand these in-depth so that in turn I can assist my clients in keeping up to date in all aspects of running their practice. I am here to help you as needed. Call anytime and I can help you save time and achieve peace of mind.
Best regards,
Kirsten S. Albo, FCPA, FCA
President
1.204.228.2529
www.ksaconsultinginc.com