Greetings,
In this month’s update, we’ll cover recent provincial practice inspection updates, it is always good to understand where others might struggle so you can improve your own files. I also share some practice management ideas to get ahold of work life balance. Lastly, don’t miss the reminders about upcoming professional development opportunities to help you stay informed of evolving standards. Read on…
Provincial Practice Inspection Results
Fall is always a busy time for practice inspections, and Provincial Practice Inspection Summary Reports are starting to roll out. It’s definitely worth taking the time to read them—understanding the deficiencies in others’ files can help you spot and fix potential issues in your own. Some provinces have already published their reports, with more expected throughout the fall.
These reports highlight common problem areas in financial reporting, auditing, review engagements, and compilations, as well as challenges firms are having with CSQM 1. They also offer a glimpse into key focus areas for 2024/25, giving you a heads-up on how to strengthen your practice and stay on top of the standards.
Here’s the link to the CPA BC Report. I’ll keep sharing links to other provinces’ reports as they come out. But from reading these reports over the years, I can tell you they’re pretty consistent across the board. So, even if you’re not in BC, it’s definitely still worth a read!
READ 2023/2024 CPA BC PRACTICE INSPECTION RESULTS HERE
AcG21 Accounting for Life Insurance Contracts with CSV
Accounting Guideline 21 is now in the Handbook. This Guideline establishes the accounting treatment for cash surrender value of a life insurance policy. This includes recognition and measurement of cash surrender value, presentation of policy premiums and change in cash surrender value, and related disclosures. The effective date is January 1, 2026, but earlier adoption is permitted.
The new guidance can be found by accessing Part II ASPE standards in Knotia.
PEG Updates released
Many auditors and practitioners do not have the time to create their own methodologies so turn to CPA Canada’s Professional Engagement Guide (PEG). This tool remains a critical resource for smaller firms handling engagements for small- and medium-sized entities. It provides a clear, step-by-step approach to completing audit, review, and compilation engagements while addressing the core requirements and concepts in professional standards.
PEG has just launched some major updates to the templates. including:
- Canadian Auditing Standards (CAS) 600 Group Audits – release of comprehensive application guidance, flowchart, and form updates, as well as ‘how to’ guidance when using PEG Group Audit forms
- Financial Reporting Forms updates – primarily to address the presentation and disclosure requirements in new Accounting Guideline AcG-20 -Customer’s accounting for cloud computing arrangements
- Videos to assist practitioners with using certain risk assessment forms (IT Overview and Information System and Communication)
While PEG is helpful to many SMPs, remember it is only a methodology, not the standards themselves. Always go back to the standards to understand the requirements of the standards. More details on the updates can be found by logging into your Knotia account.
A Workaholic’s Guide to Reclaiming Your Life
I don’t know how you would classify yourself. While I would not call myself a workaholic, I definitely get caught up in things and tend to work a lot at times. We work in a profession that puts many demands on us and being reminded to take control of our lives is a good thing. One article from HBR’s “The Big Ideas Series – Overcoming Overwork” provides six coping strategies when work seems to dominate your life. I especially like the author’s idea of “redefining urgent”.
10 Steps to Achieving Work-Life Balance
Work-life balance is often misunderstood as achieving a perfect split between work and personal life. That will never happen… in any profession. In reality, it’s a mindset where we assess and allocate the necessary time to balance career ambitions with personal priorities like family, leisure, and well-being. It’s about finding the right harmony, not perfection, in how we dedicate our time and energy to both areas. This article complements the one above and provides strategies to implement in our daily lives.
ASK KSA Professional Development
It has been a whirlwind of standards changes over the past many years. Think of all that has transpired…
- New review standards (CSRE 2400)
- New compilation standards (CSRS 4200)
- Revised CAS 315 (Identifying and Assessing RMM)
- Revised CAS 540 (Auditing Estimates)
- New standards for agreed-upon procedures (CSRS 4400)
- And biggest of all… a new system of quality management (CSQM 1)
Now is the perfect time to dive into the key issues surrounding each of these major standards changes. Staying informed on these critical areas will help ensure your engagements are both effective and efficient. ASK KSA PD offers targeted courses on each of these topics, designed specifically for practitioners. Our courses are always practical, engaging, and packed with the insights you need to stay ahead. Explore the latest offerings below to strengthen your practice:
- Review Engagements Hot Topics
- Compilation Hot Topics
- Agreed-Upon Procedures Engagements
- Audit Hot Topics
- Identifying and Assessing RMM (CAS 315)
- Auditing Accounting Estimates (CAS 540)
In addition to these (and many other!!) technical topics, we have a variety of practice management courses including Power of Efficiency, Strengthening Communication with Clients and Efficient File Reviews.
Check out these and more to ensure you’re fully equipped to meet the challenges ahead.
CSQM 1 Workshops
While the effective date for the design and implementation of your system of management has come and gone, I am still receiving many phone calls from firms about assistance on CSQM 1 implementation. Some firms have not yet implemented the requirements of the standard, and others have but encountered significant weaknesses after going through a practice inspection. No matter who you are and what stage you are at, I am here to help. The next CSQM 1 implementation workshop is schedule for October 29. Join me?
CHECK OUT MY FREE BLUEPRINT IMPLEMENTATION VIDEO AND INFORMATION ON THE UPCOMING WORKSHOP HERE
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As we enter the fall season, it’s the perfect time to focus on engagement planning and make progress toward your professional development hours by taking relevant courses. However, it’s also important to take a step back and spend quality time with loved ones. Wishing you a happy Thanksgiving filled with warmth and gratitude! I’ll be back next month with more valuable insights to support your practice, in the meantime, feel free to reach out anytime. I am always here to help you save time and achieve peace of mind.
Best regards,
Kirsten S. Albo, FCPA, FCA
President