Special Release: CSRS 4200 In the Handbook!! (and clarification on the effective date)

February 3, 2020 / Special Update

Greetings,

The new Handbook Section CSRS 4200 Compilation Engagements was released on the weekend and is now officially in the Handbook. First and foremost, a point of clarity – the section is effective for periods on or after December 14, 2021, that is effective for fiscal years ending December 31, 2021. I had a typo in my January update. My apologies and thanks to the eagle eyes that pointed this out.

CPA Canada summarized some of the key features, designed to respond to stakeholder input and public interest issues as follows:

  • A scope that sets out which services are compilation engagements. Today, practitioners find it difficult to distinguish a bookkeeping service from a compilation engagement. The new standard clarifies that a bookkeeping service may result in system-generated financial information. Such information is excluded from the scope of the standard if no communication is included or attached to it.
  • Specific engagement acceptance considerations that apply when the compiled financial information is intended to be used by a third party. Currently, practitioners are unclear about whether it is appropriate to accept or continue a compilation engagement when there is a third-party user.
  • Specific required work effort and documentation. The lack of explicit guidance in this area could be a reason for the existing variability in practice.
  • A requirement that compiled financial information includes a note describing the basis of accounting that was applied. Today, users generally lack an understanding of how the compiled financial information was prepared.
  • A new compilation engagement report that is more informative and insightful than the current Notice to Reader. Users are unclear as to the extent of work performed by the practitioner and have asked for greater transparency about those responsibilities.

Even though the standard is not effective for some time, there are a number of activities you can undertake already to be prepared. These include:

  • Read the actual standard and the Basis for Conclusion (both in Knotia).  
  • Read CPA publications and other material issued as these help promote awareness, understanding and effective implementation (two links below of material already issued).
  • Consider how the standard impacts your current engagements.
  • Design an implementation plan – there are certain requirements that may make sense to start implementing in this current year so everything does not hit all at once when effective.
  • Talk to your clients.

Below are links to guidance and information to help you get started. 


Please feel free to reach out at any time for support on implementing the new standards. 

Best Regards,
Kirsten S. Albo, FCPA, FCA
President


Special Update – CSRS 4200

October 10, 2019 / Special Update

A quick mid-month update. It is official. There is a new compilation standard. The AASB approved CSRS 4200 at their meetings held this week.

This news is so recent that I do not have the new standard or details on what was actually approved yesterday. All that I know from my contacts at CPA Canada and the AASB is that the standard has been approved and there are changes from what was in the Exposure Draft. What the changes are, I don’t know; only those who approved the new standard do know at this point.

The new CSRS is expected be in the Handbook in February but the effective date is not yet known. I expect there to be a lot of communication in the coming months so will disseminate and pass onto you in my monthly updates; I will also be building the changes into the courses that I instruct for many of you and your firms.

So all this to say… stay tuned. Changes are confirmed and coming but what they are still to be seen. So, in the meantime, happy Thanksgiving!!!!

Best Regards,
Kirsten S. Albo, FCPA, FCA
President


Putting HR into Practice – May 15

May 8, 2019 / Special Update

Please join me at the CPA Manitoba Practitioner Forum on May 15. This event will be held at the CPA Manitoba office from 5:00 – 7:00 pm. Appetizers will be provided. The topic this time is on the unique human resources (HR) issues that small to mid-sizes firms face. 

I am facilitating this month’s forum and presenting on such topics as the reviewing results of the most recent salary survey, discussing current trends in the market related to salaries and highlighting challenges and ideas with respect to recruiting, retaining, motivating and engaging staff.  The presentation will be followed by a facilitated round table discussion so practitioners can share their experiences and learn from others.  

Further details and registration can be found at the following link: https://cpamb.ca/news-events/events or on the CPA Manitoba website.  I hope to see you there.

Best Regards,
Kirsten S. Albo, FCPA, FCA
President