January 2021 Update

January 30, 2021 / Monthly Newsletter

Greetings,

New year, new standards and new baby. What a great start to the year. My son and daughter-in-law just had a little baby girl so I am now a grandma and I can’t be more excited. The excitement of new standards pale in comparison but we can’t lose sight of these many upcoming changes. Read on…  


New Quality Management Standards Approved

At their meeting on January 21, 2021, the AASB approved the new Quality Management standards consisting of CSQM1, CSQM 2 and CAS 220. The final standards will be published in a Handbook update in May 2021. The standards will be effective as follows:

    • Systems of quality management for audits or reviews of financial statements or other assurance engagements are required to be designed and implemented by December 15, 2022, and the evaluation of the system of quality management is required to be performed within one year following December 15, 2022.
    • Systems of quality management for related services engagements are required to be designed and implemented by December 15, 2023, and the evaluation of the system of quality management is required to be performed within one year following December 15, 2023.

These new Quality Management standards were approved by the IAASB in September 2020. Rest assured I will be providing updates and links to guidance on these standards as they are made available. In the meantime, a video from the Chair of the ISQM Task Force provides a clear and concise overview of the new requirements. Very worth the half hour of your time. WATCH THE VIDEO HERE  


Assurance and Accounting Upcoming Changes – Summary

With all of the upcoming assurance and accounting changes, I thought it worthwhile to summarize these for you so you have all in one place. I created a simple document that you can print and keep handy. The key thing to remember is the standards in effect for years ending December 31, 2020 which are CAS 540 Auditing Estimates and Section 3465 Leases. There are many more standards for years ending December 31, 2021 but for now focus on what you need to know. ACCESS ASK KSA SUMMARY PDF HERE  


Accounting Guidance

CPA Canada published two good guidance tools on various accounting issues related to Covid back in May 2020. However, as you start to perform engagements in this upcoming year, many of the factors still exist and therefore I wanted to bring these publications to your attention once again. They include specific guidance on the many accounting issues that may have to be addressed along with practical consideration and the applicable handbook section. READ ASPE GUIDANCE HERE READ ASNPO GUIDANCE HERE  


Providing Business Guidance

Being a trusted advisor is more than the audit or review or tax return. It is about providing guidance and support to your clients. CPAs are asking for insights on how to deal with emerging business issues resulting from COVID-19. Learn about these issues and the guidance available to help your client deal with issues such as enforceability of commercial contracts, business interruption insurance coverage and authentication of documents among other topics. READ RESOURCES HERE


The Year Ahead: 2021 in Numbers

What does the upcoming year have in store for firms? What are your plans? How do you compare to others. In November Accounting Today conducted its annual survey of firms of all sizes polling practitioners on everything from the growth expectations to their plans for tech spending their use of social idea, the new services they are offering and what they expect to happen with the pandemic. The stats are very interesting. How do you compare? READ SURVEY RESULTS HERE


ASK KSA Professional Development Initiative

A key initiative I will be undertaking over the next few months is developing online, on demand professional development courses. Courses will be about one hour in length and cover many topics such as the new Quality Management Standards, practical application of the auditing standards such as performing substantive analytical procedures and journal entry testing, and other soft skills topics such as ethics, coaching and feedback and communicating with clients. As I develop my online course curriculum, I would be very interested in feedback from you as to what topics you would like me to include. I am open to all ideas and would love to hear from you.

What topics are of importance to you? What courses would you like to participate in? What thoughts do you have on what should be included in my online courses? Send me an email.

PD Reporting
Don’t forget provincial PD reporting requirements. Reporting due at the end of this month (NOW!).


It is going to be an exciting year on all fronts. While I will be busy with my new baby granddaughter, I will also be very busy with the many new standards and helping you keep up to date as you implement them to ensure you conduct efficient and effective engagements. I look forward to working with you as needed. As always, I am here to help you save time and achieve peace of mind. Reach out anytime.

 

Best regards,
Kirsten S. Albo, FCPA, FCA
President
1.204.228.2529
www.ksaconsultinginc.com