June 2024
Greetings,
I don’t know about you, but I finally feel like summer has arrived; I guess it technically has since the first day of summer was this month. There are a number of ongoing projects that you need to know about but nothing urgent. Use this time to plan, organize and connect with clients, as well as build your team’s engagement with the firm. Read on…
Canada’s Decision Not to Adopt the International Standard for Audits of Less Complex Entities
As I previously mentioned, the IAASB adopted a new stand-alone standard for audits of less complex entities, known as the ISA for LCEs, in September 2023. Canada was very involved in the project and provided a lot of input every step of the way. The AASB considered adopting the ISA for LCEs in Canada. They consulted extensively, assessed whether the standard would address auditors’ concerns, and met with other international bodies in making their decision.
After careful and thorough consideration, the AASB decided NOT to adopt the ISA for LCEs in Canada. They were of the view that the standard would not adequately meet the needs of interested and affected parties in Canada and, more importantly, would not serve the Canadian public interest. As a member of the Advisory Group to the AASB on this standard, I fully support the final decision not to adopt ISA for LCEs.
The decision not to adopt the standard does not mean the work is done. The AASB has committed to exploring a Canadian solution to address the challenges of auditing less complex entities.
CHECK OUT FURTHER INFORMATION ON THE DECISION AND NEXT STEPS FORWARD HERE
Caution Against Providing Attestations for Labour Market Assessments
I have raised this issue before but thought it worthwhile to raise it again as I am still being asked about the LMIA attestation. The bottom line is you can’t, as it currently is outlined on the Government of Canada website. What they are suggested does not meet any of the requirements of our standards. You can do something for your clients, but you will have to give some thought as to what this looks like. A few provinces have put out good guidance on this topic, the most recent being CPA Alberta.
FAQ for Auditors: CAS 402 – Service Organizations
The Canadian Public Accountability Board (CPAB) published a communication, Audit Considerations Relating to an Entity Using Services Organizations: Strengthening Audit Quality which highlighted challenges and observed findings related to audits of entities using service organizations. CPA Canada released a related publication intended to assist auditors in the application of CAS 402, Audit Considerations Relating to an Entity Using a Service Organization, based on common FAQs and deficiencies identified.
DOWNLOAD CAS 402 FAQ PUBLICATION HERE
How to Get Your Team to Actually Speak Up
There is a common leadership misconception that merely encouraging team members to voice their opinions will foster an environment of openness. But people won’t speak up unless they feel safe doing so. As a leader, this means you have to address the underlying reasons for employee reticence, including the individual and systemic barriers to speaking up. An excellent article from HBR outlines several tactics that partners and managers can use to provide alternative paths that feel safe for staff to say what’s on their minds. Open communication leads to more effective and efficient engagements and a strong culture.
The Secret to Improving Your Employees’ Happiness
As the notion that happy employees are more productive gains wider acceptance, employers face the challenge of finding what brings happiness to their staff and determining the most effective methods for integrating this approach. A growing body of research confirms the link between happiness and productivity. And in our professions, productivity is a welcome concept.
Get a Jump on your CPD Hours
Why wait until the end of the year to take your verifiable CPD hours? If you want to get a jump on 2024 CPD hours, check out ASK KSA online on-demand CPD courses. All courses are practical, engaging informative. Take what you learn and put into practice.
It has been a busy summer. In between CSQM 1 workshops, instructing and file inspections, I have also been working on improving my golf game and have seen results, so very excited about that. As well, while my intro said to connect with clients, it is as important to take time to connect with family and friends. That is what I am going to do. You should do the same.
Happy long weekend!!!!
Remember, I am always here to help you save time and achieve peace of mind. Reach out anytime.
Best regards,
Kirsten S. Albo, FCPA, FCA
President