November 2024

Greetings,

Wow, we are almost at the end of the year… only one month to go. Cray-cray. This month I am going to focus on reminders to help you as you get ready for the upcoming new year. There are a few things that will help you prepare for your upcoming engagement including reminders on applicable standards, reminders for year end planning, and practical tips to use as we head into the new year. Read on…

ASK KSA Pro Tips

As we head into busy season, I know it is challenging to juggle all that needs to get done. I know when I was performing year-end engagements, I sometimes wished there was a magic wand I could wave to just get it all done. While that magic wand does not exist, there are steps you can take to ensure you are effective and efficient in performing engagements. I have a few ASK KSA Pro Tips videos to help you get ready. Check them out…

• Minimizing practice inspection comments… How many times have you read your practice inspection report and been frustrated at the point raised? You know you know better! There are always going to be findings raised in a practice inspection report… a given in our profession. The challenge is finding the balance between too many findings and no findings at all. Here are simple and practical tips for you.
• File reviews… They have to take place on all engagements but where do you start? What do you look for in order to not miss a critical issue? How can you be efficient and not spin your wheels? In performing a file review, you don’t want to miss anything or waste time, and therefore a file review strategy is essential. I have ideas for you!
• Save time on engagements… while this is mainly for audit engagements, the concepts apply equally to review engagements. I share strategies on implementing effective strategies in performing effective and efficient engagements
  Professional skepticism… Being in public practice means we have a responsibility to maintain an attitude of professional skepticism. The challenge is there is lot of theory on this topic but little practical guidance. I have the guidance for you!!
• CSRS 4200…this standard has been around for a while now. Recognizing I created this one when the standard was being introduced, the strategies and ideas I discuss still apply today.

CHECK OUT ASK KSA PRO TIPS VIDEOS HERE

 

Drafting Audit and Review Engagement Reports

It is “easy” to draft an unmodified audit opinion or an unmodified review engagement conclusion. I say easy because of course you have to do all the work to get to concluding and reporting. Planning is key (see next topic). But what happens if you have to issue a modified report… could be a qualification, an emphasis of matter paragraph or other matter paragraph, or even an adverse opinion or conclusion? Then what, what are you supposed to include in the report, what do you disclose?

CPA Canada has issued two Reporting Implication Guides you need to have on hand. The first is the Reporting Implications of the Canadian Auditing Standards (CAS), and the second is the Reporting Implications for the Canadian Standard on Review Engagements (CSRE 2400).

In both cases, the purpose of the publications is to promote consistency in the form and content of practitioners’ reports by 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 Auditing and Assurance Standards Board (AASB) relating to reporting.

You know what sometimes, you don’t know what to say? Well these guides most likely have the answer so keep them handy in the upcoming months. The guides include:

• overview of financial frameworks, with an introduction to illustrative reports
• addressing and dating reports appropriately
• rundown of relevant ethical requirements
• handling historical financial data outside of reporting and additional supplementary information withing financial statements
• and for audits, updates to group audit section relating to Revised CAS 600

These resources are truly helpful and ones I turn to in providing guidance to practitioners when they give me a call for help.

DOWNLOAD THE AUDIT REPORTING IMPLICATIONS GUIDE HERE

DOWNLOAD THE REVIEW ENGAGEMENT REPORTING IMPLICATIONS GUIDE HERE

Evaluation of your System of Quality Management

For those firms that perform assurance, you are headed into your second year of evaluating your system of quality management, and for those firms that provide related services only (compilation engagements), this will be your first year of evaluating your system of quality management. For many firms, this date is December 15, 2024 (although it can be different from this, as long as it is annually, at a point in time).3

For many small- to mid-sized firms, this is not an onerous exercise but rather one that is a good stand-back moment to consider your firm. In making your assessment, use the results of your monitoring activities, results of engagement performance and cyclical file inspections and other ongoing or periodic activities that provide you with information about the firm’s system of quality management.

Your conclusion is whether your system of quality management provides the firm with reasonable assurance the quality objectives are being met. If you have severe but not pervasive deficiencies then most likely your conclusion is an “except for deficiencies that are severe but not pervasive, the system of quality management provides reasonable assurance”. If you have done nothing, you may have to conclude you don’t have reasonable assurance. But don’t let it get to that.

Check out my CSQM 1 BLUEPRINT WEBINAR if you are still looking for assistance on implementing the requirements of CSQM 1, reach out. There is one last workshop this year that will help you get it done!!! And if you are done, good job!!!!

CPA Canada Publications and Guidance

I often turn to CPA Canada for guidance on implementing standards. I thought it would be helpful to you and save you time to include a list of many of the guides that I use in helping firms. You don’t need to read them all but be aware of them so when a situation arises… you first look to the handbook for the requirements but then know you also have a good resource to provide further guidance.

Here is a list of some of my favorites…

• ASPE ALERT: 3400 REVENUE RECOGNITION CHANGES
• A&A ALERT: REVISED CAS 600 COMING INTO EFFECT
• CAS 315 RESOURCES
• FAQ REGARDING CAS 315 GITCs
• IMPLEMENTATION TOOL: TESTING JOURNAL ENTRIES
• CAS 540 IMPLEMENTATION TOOL
• CSRS 4400 AGREED UPON PROCEDURES FAQ
• CSRS 4200 COMPILATION ENGAGEMENT GUIDANCE RESOURCES
• WHAT YOU NEED TO KNOW ABOUT ATTESTATION AND DIRECT ENGAGEMENTS (CSAE 3000 AND 3001)

December 31, 2024 Deadline Looming
It is CPD time. There are a lot of options available for meeting your verifiable CPD hours. Make sure you are taking courses that are valuable, will have an impact and provide practical guidance.

ASK KSA PD Courses meet all these requirements… CHECK THEM OUT HERE.

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As we gear up for the busy season, preparation is key to ensuring successful and efficient engagements. By implementing tips shared in this month’s update, you can set yourself and your team up for smoother workflows, enhanced collaboration, and higher-quality results. Remember, effective planning and proactive communication are your strongest allies. As always, my goal is to provide you with practical guidance that helps you navigate challenges and conduct effective and efficient engagements.

And, since I won’t be sending the next newsletter out until the end of next month… let me be the first to wish you Merry Christmas and Happy Holidays!!!

Best regards,

Kirsten S. Albo, FCPA, FCA

President