June 2026
Greetings,
Summer is finally here, and while many firms are taking some well-deserved time to recharge, it’s also a great opportunity to stay current on the latest developments before things ramp up again. Did you know that there are quite a number of new standards that are now in the Handbook or will soon be? This month is technical-heavy as there is so much going on!! I’ve included updates on several new and emerging standards, an exciting milestone in the IAASB’s Audit Evidence & Risk Response project, and a practice management article that I think is well worth your time. Read on…
Audit Evidence & Risk Response (AE&RR) Project – Exposure Drafts Approved
The IAASB has hit a key milestone in its AE&RR project, approving for exposure draft the proposed updates to ISA 330, The Auditor’s Responses to Assessed Risks, ISA 500, Audit Evidence, and ISA 520, Analytical Procedures. These updates are aimed at modernizing the standards—making it clearer how auditors gather and assess evidence, respond to risks, apply professional judgment and skepticism, and use technology in today’s audits.
The AASB has been closely involved along the way, sharing input with the IAASB to help make sure the proposals are practical and workable in Canada. As previously mentioned, I have directly involved as a member of the Canadian AE&RR Advisory Group, contributing throughout the project. I will keep you posted as things continue to move forward.
HERE IS THE LINK TO THE IAASB PROJECT PAGE
HERE IS THE LINK TO THE AASB PROJECT PAGE
The Exposure Drafts are expected to be issued August 5, with a response deadline in mid-December.
CSRS 4250 – Compilation Engagements on Future-oriented Financial Information and Pro Forma Financial Information
One other standard that has been approved and is now in the Handbook is CSRS 4250. This a new standard that applies when practitioners are engaged to compile future-oriented financial information, such as financial forecasts, projections or pro forma financial information. Examples include preparing financial projections to support a financing application, business acquisition, investor presentation or other transaction.
The standard replaces AuG-16 and is effective for compilation engagement reports dated on or after July 1, 2028 (early adoption is permitted).
READ THE FRAS PROJECT PAGE WHICH EXPLAINS THE STANDARD AND THE REASONS FOR THE CHANGE.
CSSA 5000 Canadian Standard on Sustainability Assurance
As sustainability reporting becomes more common, organizations are increasingly seeking independent assurance over their sustainability information. CSSA 5000 establishes the requirements for practitioners performing assurance engagements on sustainability disclosures. It provides a consistent approach to planning, performing and reporting on both limited and reasonable assurance engagements.
This standard is effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2027, or as at a specific date on or after December 15, 2027.
The standard itself is in the Handbook (Knotia) and you can find it under Assurance, Other Canadian Standards. CSSA 5000 is closely aligned with its counterpart at the International Level ISSA. READ THE IAASB FAQ HERE. This document supports implementation and focuses on the application of materiality in sustainability assurance engagements.
CSDS 1 & CSDS 2 New Sustainability Disclosure Standards
Linked to the assurance standard, there are also disclosure requirements. The Canadian Sustainability Standards Board (CSSB) has issued CSDS 1 and CSDS 2, Canada’s new sustainability disclosure standards. CSDS 1 establishes the overall framework for reporting sustainability-related risks and opportunities, while CSDS 2 focuses specifically on climate-related disclosures, including governance, strategy, greenhouse gas emissions, and climate-related risks. Together, the standards provide a consistent framework for sustainability reporting. The standards are currently voluntary unless required by regulators or legislation.
The standards can be found in the Handbook (Knotia) under a new separate section “Sustainability“.
Time for a Practice Tune-Up
With busy season behind us, summer is the perfect time to reflect on what worked well and what could be improved before next year. The Journal of Accountancy article, “Time for a Tax Practice Tune-Up,” offers practical ideas for evaluating processes, improving workflows, and identifying opportunities for greater efficiency. While the article is written with tax practices in mind, the lessons apply equally well to audit and assurance firms. Whether you’re updating templates, refining your methodology, or simply capturing lessons learned from the past few months, it’s well worth the read.
ASK KSA Professional Development Update
Last month, I shared that I was developing a number of new ASK KSA Professional Development courses. I’m happy to report that production is now well underway, with recording completed and production now under way.
The new course lineup will include 12 new technical sessions covering topics that are top of mind for public practitioners, including CAS 402 Service Organizations, CAS 510 Initial Audits, CAS 501 Auditing Inventory and Revised CAS 570 Going Concern.
I am so excited about these new courses. Each course goes beyond the technical, as they are designed to provide practical guidance, real-world examples, common pitfalls and actionable insights. All courses will qualify for PAL licence hours.
I look forward to sharing more details and releasing the first courses later this year.
CHECK OUT THE CURRENT ASK KSA PD COURSE OFFERINGS HERE
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Whether you’re taking some vacation time, tackling a few summer projects, or getting caught up, I hope you have a fantastic summer. Thank you, as always, for your continued support of ASK KSA.
If you have any questions or want further information on any of these, 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