February 2025

Greetings,

This month’s update is really just that… an update on new and ongoing activities that I think are important to be aware of. There continues to be a record number of standards changes that will impact your engagements. Some changes are imminent and others are further out into the future. By being aware you can start to be prepared. I will provide more details in coming months but for now, here are some of the things that are going on. Read on…

Revised Audit and Review Reporting Guides

Do you ever sometimes wonder about what to include in your report when you have a qualification of emphasis of matter paragraph? I get many questions from practitioners about “what to say” in a report. The main source of my response is two amazing publications from CPA Canada… The Reporting Implications of Canadian Auditing Standards and Reporting Implication of CSRE 2400.

The most recent editions of these Guides have just been released. These publications are so helpful in providing guidance with respect to commonly occurring circumstances. Presenting a series of problems in a Q&A format and as illustrative reports, the guides are designed to help you understand and apply requirements and supporting guidance issued by the AASB relating to reporting.

You won’t read the guides cover to cover (+500 pages) but you will want to have them handy for those unusual circumstances you are sure to encounter over the upcoming months as you perform audit and review engagements. Check them out here…

CPA Canada Reporting Implications of Canadian Auditing Standards

CPA Canada Reporting Implications of CSRE 2400

New Era of Sustainability Reporting in Canada

You may not perform any sustainability engagement right now, but it is important to keep up to date in our profession. The newly formed Canadian Sustainability Standards Board (CSSB) recently released their inaugural sustainability disclosure standards: CSDS 1, General Requirements for Disclosure of Sustainability-related Financial Information, and CSDS 2, Climate-related Disclosures. These standards represent a significant milestone in promoting consistency and comparability in sustainability reporting. These are the equivalent of “accounting disclosure requirements”, except for they are for sustainability-related financial information.

You can access information about the CSDS standards, along with the standards themselves HERE.

You can also learn more by watching the ON-DEMAND WEBINAR which provides an overview of the CSSB and goes into a deep dive of the standards.

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.

ISA 570 Going Concern Approved

In December 2024, the International Audit and Assurance Standards Board (IAASB) approved revisions to ISA 570, Going Concern, to strengthen how auditors assess an entity’s ability to continue operating. Key changes include a more thorough review of management’s assessment, a longer evaluation period, and clearer reporting in the auditor’s report. Yes, a change in the auditor’s report!! In their upcoming March 2025 meeting, the AASB is set to approve the same standard in Canada. Read more on the AASB CAS 570 Project Page.

Exposure Draft: CAS 240 Auditor’s Responsibilities Related to Fraud
The IAASB is expected to approve ISA 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, in their March 2025 meeting. In turn, the AASB is expected to adopt Revised CAS 240 in their June 2025 meeting. Read more on the AASB CAS 240 Project Page.

Exposure Draft: CSRS 4250 Compilations of Future-oriented Financial Information (FOFI)
In September 2024, the AASB has issued an exposure draft related to compiling future oriented financial information and pro forma. This proposed standard, CSRS 4250, will provide guidance to practitioners preparing this type of information. Read more on the AASB CSRS 4250 Project Page.

Exposure Draft: CSSA 5000 Sustainability Assurance Requirements
Related to the new sustainability disclosure requirements above, the AASB issued an Exposure Draft CSSA 5000 General Requirements for Sustainability Assurance Engagements back in September 2023. Comments are still being deliberated. Read more on the AASB CSSA 500 Project Page.

Navigating Tax Changes

I don’t typically comment on tax changes as these are outside my area of expertise. However, CPA Canada recently sent out an email with extensive information to help practitioners navigate through these changes. Here are a few of the links in their email (Note: You must be a member of CPA Canada to access these links)…

3 Ways to Manage Moments of Work-Induced Anxiety

Between performing engagements, keeping up with standards and fast-paced workplaces in general, our collective stress baselines are higher than ever before, and against this backdrop, you might find yourself getting anxious more easily at work. Today, workplace anxiety is common, but it is also manageable and to some degree, even preventable. I liked this article that helps us realize our minds and bodies aren’t our enemies, they’re our greatest allies — if we know how to use them. Here are some ideas for you.

READ HBR ARTICLE HERE

Guide to Reclaiming Your Life

We can get so caught up in work and need to pay attention so we don’t become “workaholcis”. Workaholism is when work dominates your thoughts and your activities, to the detriment of other aspects of your life, including but not limited to your relationships and your health. In this helpful article, the author equips readers with six coping strategies to break the cycle. Through mechanisms such as redefining what is and is not urgent, fixing our work clock, and embracing rest and recovery, we can unlearn toxic behaviors and reclaim time and lives.

READ ARTICLE HERE

CPD Reporting Reminder!!
2024 Declarations Due

Each of the provincial CPD portals should now open for you to make your 2024 Continuing Professional Development (CPD) Declaration. Make sure you are aware of your provincial deadlines and get this done!! Many of the provinces have a March 1 deadline (tomorrow!!), so if you haven’t completed your reporting, do it now; otherwise, you could be subject to penalties, which are never fun to pay.

In general, requirements are:

Maintain 120 CPD hours over a 3-year rolling period (calendar year).
CPD learning activities are classified as either Verifiable or Unverifiable. A minimum of 60 CPD hours over the 3-year rolling period must be Verifiable, which shall include a minimum of 4 hours of verifiable learning in professional ethics.
A minimum of 20 CPD hours must be reported annually, including a minimum of 10 hours of verifiable learning.

In addition to the above, there are further requirements related to licensing. Audit partners must ensure they meet the requirements of IES 8 which basically states the CPD hours you take must relate to auditing and not “other” topics.

It is always a good idea to take your professional development courses throughout the year, and not leave them until the last minute. If you are looking for ideas on courses, you can always check out the online on-demand sessions offered by ASK KSA. CHECK THEM OUT HERE!!

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Exciting news!!!! I have recently been appointed to the AASB’s Advisory Group on Audit Evidence and Risk Responses (AE&RR AG). This newly approved project aims to concurrently address revisions to CAS 330, The Auditor’s Response to Assessed Risks, CAS 500 Audit Evidence and CAS 520 Analytical Procedures. I am honored to be a part of this important initiative which will result in Exposure Drafts for each of these standards by the end of 2025.

Our first meeting is this Monday, and I can’t wait. My husband calls me a “standards nerd” and and I proudly own that title. It is fun to have a say. Don’t be surprised if I reach out to you at some point for your input on how these changes may impact you.

If you have any questions on any of the above or other topics, reach out any time. I am always here to help you save time and achieve peace of mind.

Best regards,

Kirsten S. Albo, FCPA, FCA

President

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