August 2022
Greetings,
It is the end of August. Whaa-aaat?!?!?! How can that possibly be. It has been a great summer with an opportunity to relax but now onto fall planning. There are a number of upcoming changes to think about. This month’s topics will help get you started. CAS 315 planning. Group Audits. CSQM 1 implementation. Plus, a few tips on getting things done. Read on…
Revised CAS 315... Are you Ready?
Have you started thinking about the implications of CAS 315 on your audits? If not, you are not alone, but now is the time to start. The changes to CAS 315 are effective for upcoming December 2022 year ends. Time to move this project up the priority list.
For some engagements, the changes might not be significant but for others, there will be a lot to consider. The reason for the range of impact is driven by two things… What is currently documented in your engagement files and the client themselves.
The area that is most likely to be the biggest challenge relates to IT applications and general IT controls (GITCs). These are terms that are not in the every day language of auditors, but they should be. Nowadays, all clients use IT, even the very small ones. Updating your audit template files is critical.
Tips: Assign someone to lead this project. Understand the changes. Review your audit template file. Update checklists as required.
CPA Canada has issued an excellent resource to help with implementation. This tool focuses on selected new requirements and certain other requirements in CAS 315, and emphasizes the scalability of the standard with a focus on less-complex entities.
Did you Know... Revised CAS 600 Group Audits Now in the HB
Revised CAS 600 is now officially in the handbook… included in the August 2022 update. There are both new and revised requirements to consider. But, you have time, the revised standard is effective for audits of group financial statement beginning on or after December 15, 2023. However, early adoption is permitted so something to consider.
Often I hear auditors say, I am not doing a group audit, but are you sure? The standard defines group FS to include the FS of more than one entity or business unit through a consolidation process… Do you issue consolidated FS? Something to think about.
Data Analytics... Useful or Scary?
Do you use data analytics in your audit engagements? Or is it one of those scary things you just shy away from? I am somewhere in the middle.
As our clients, even the small ones, move into the area of IT, audit data analytics (ADAs) is something that I believe we will all start thinking about… and using. The big question is when. While is may be something that is further away on the horizon for you, it is not too early to start learning more.
The term refers to the use of data analytics in the audit of financial statements. ADAs are audit procedures used to discover and analyze patterns, identify anomalies, and obtain other useful information from data populations relevant to the audit.
CPA Canada is committed to supporting its members through tools and resources to promote awareness, understanding and effective implementation of data analytics. They have a full suite of tools and resources that can help you get started.
Want to Be More Productive? Try Doing Less
The author of a Harvard Business Review Article starts off this great article on productivity with the following thoughts: We’ve been taught that if we want more — money, achievement, vitality, joy, peace of mind — we need to do more, to add more to our ever-growing to-do list. But what if we’ve been taught wrong? What if the answer to getting more of what we want isn’t addition at all, but subtraction?
She continues with the idea that evidence supports that if we want to ramp up our productivity and happiness, we should actually be doing less and then provides an interesting approach to doing so. I like it, and am going to try it… what about you?
Sorry, not Sorry
It is in our nature to say sorry, even when we haven’t made an error or offended someone. Especially when dealing with clients, we often apologize when maybe we don’t need to.
I love this article from Forbes on taking a different approach to apologizing and finding different ways to express what you truly mean. I have been trying to put these alternative phrases into practice. I am busy these days and tip #1 is working like a charm… Instead of saying “sorry for not getting back to you” I am saying “Thanks for your patience with me”. It seems to release a lot of pressure all around.
The other tip I really like is #7. When I make a mistake (and who doesn’t?), the solution-minded me says “thanks for pointing that out, what else is worth knowing here?”. It works like a charm, I learn… and improve.
What phrases will you start using?
[Free Webinar] CSQM 1 Implementation Blueprint
If you’re looking to understand what the changes mean for YOUR firm… or if you’re struggling to get started on your CSQM implementation plan… ASK KSA can save you a LOT of time.
Many practitioners have some idea of what’s coming but haven’t yet started. The reality is a lot of firms are underestimating what needs to be done to meet the requirements.
It is estimated it will take upwards of 100 hours to properly implement the changes. These are hours you probably don’t have.
ASK KSA has coached many clients on implementation and in this webinar we will share our blueprint with you. You will walk away with massive clarity on CSQM and confidence in your path forward.
If you haven’t already signed up, here is your chance… two date options but filling up fast so lock in your spot now. And, since they are live you will have a chance to ask any question that is on your mind.
Register here for: SEPTEMBER 8 at 2 PM CST (3 PM EST)
Register here for: SEPTEMBER 21 @ 11 AM CST (12 PM EST)
Pssst… if you join in you will hear bonuses about CSQM 1 workshops that are for attendees only.
One last update. Our Audit of the Less Complex Entities Advisory Group met this week to discuss the IAASB proposed changes to the exposure draft issued earlier this year. The focus of our discussion was whether or not the proposed changes really addressed the “pain points” that auditors face when auditing LCEs. Other topics on the agenda included the authority of the ED, group audits, the use of essential explanatory material and including quantitative guidance on whether you are in or out of the standard. Canada has still not decided their approach as there is a long way to go.
I am excited about the upcoming fall. There is lots on the go… that’s what makes it fun. I am always here to support you as needed. Reach out any time.
Best regards,
Kirsten S. Albo, FCPA, FCA
President