November 2020 Update

November 27, 2020 / Monthly Newsletter

Greetings,
Another busy month – where does the time go? As we head into the last part of the year, it is important to stay focused on what we need to get done to be prepared for the new year. One of the key action items is to remind yourself of what is upcoming. Therefore this month’s topics are limited to the near future. Reminders of revised and new standards and details of training courses to help you get ready. Read on…


CAS 540 FAQ Resource

Reminder, reminder, reminder… Revised CAS 540 Auditing Estimates is effective for upcoming December 2020 year ends. This standard will have an impact on all audit engagements, even those clients with less complex estimates. CPA Canada recently released a publication to help you with implementation. Their FAQ provides answers to common questions on the revised standard. A really good tool to help you understand implementation issues.

CAS 540 GUIDANCE


Focus on Practice Inspection Annual Report

Practice inspections are a part of our profession. I have spent a lot of time over the past year either helping firms get ready for a practice inspection or responding to their practice inspection results. The Annual Focus on Practice Inspection summarizing all inspection findings was released this week. It is helpful to understand what deficiencies occurred so you can take action to help ensure the same findings don’t happen in your engagements. The Manitoba results are consistent with findings from other provinces as results are shared and compared across the country. Very worth your time to read.

READ PRACTICE INSPECTION SUMMARY HERE


Verifiable CPD Reporting Reminder

The year end deadline is fast approaching! Often it can be a challenge to find good, practical and worthwhile PD courses. ASK KSA has several upcoming on-line workshops to help you meet those required verifiable PD hours. We can also deliver tailored in-house courses as needed. Reach out to me directly. Current live online workshop offerings are as follows:

Path to Implementation – CSRS 4200
(3 hours verifiable CPD)
January 6, 2021 @ 1:30 pm
January 21, 2021 @ 1:30 pm $600

What’s New? 2020 Assurance and Accounting Update
(3 hours verifiable CPD)
December 18 @ 1:30 pm $200

CLICK HERE TO REGISTER FOR CURRENT COURSE OFFERINGS


Many practitioners are reaching out to me these days for assistance on many topics. We are facing many challenges in our current environment. Results of practice inspections, financial statement disclosure matters, file efficiency reviews, monitoring, implementing the new compilation standard… the list goes on. Please feel free to call with whatever is on your mind. I am here to save you time and provide peace of mind.

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


January 2020 Update

January 31, 2020 / Monthly Newsletter

In this Update:  Assessing RMM; Mandatorily Redeemable Shares; Audit Estimates; Professional Judgement; Compilation Engagements

Greetings,

Happy New Year!! I know it is a bit late to be saying that but for many, I have not had the chance to wish you all the best in the new year before now. I am very excited about the upcoming year. There are a lot of impending changes that will make it challenging but what is life without a bit of excitement. Read on…

CAS 315 (Revised) Identifying and Assessing RMM Approved in Canada

CAS 315 (Revised) was recently approved at the December 2, 2019 meeting of the AASB. There were no changes from the same International Standard that was approved earlier in the year. CAS 315 will be effective for audits of financial statements for periods beginning on or after December 15, 2021 (that is, effective for fiscal years ending December 31, 2022). The Handbook section itself will be released in the Handbook in May 2020. There will be application material, webinars and other tools released over the next few months to assist with application of the new requirements; I will keep you updated on these sessions as they become available.  Of course, I am available to assist in training and implementation. 

READ PROJECT UPDATE HERE

Section 3856 Retractable or Mandatorily Redeemable Shares (ROMRS) now Effective

The new standard on ROMRS (Section 3856) came into effect on January 1,2020. This standard not only applies to shares issued after January 1, 2020 also to shares issued before then. This means the new standard could be a big deal for your private companies as shares previously classified as equity may now need to be classified as liabilities which may put a company offside on its banking covenants. CPA Canada published an ASPE briefing which provides guidance on the new standard and transition issues. Make sure your clients start talking to banks now if necessary to ensure there are no surprises when the year end statements are issued.

READ BRIEFING HERE

CAS 540 (Revised) Audit Estimates

While you are talking to clients, you may also want to think about the revised auditing standard for estimates. This standard is effective for periods beginning on or after December 15, 2019 (that is, effective for fiscal years ending December 31, 2020) however, depending on the nature of your client’s estimates, it may be helpful to be proactive and think about the impact of the changes in this standard. CPA Canada has published a client briefing document that will help you in your discussions with your clients.  This should be an area of focus in training courses for your staff over the upcoming year.

READ BRIEFING HERE

Time to Reinforce Professional Judgment

All of the upcoming changes reminds us that professional judgement is an underlying concept in our daily work. We are often called upon to exercise professional judgment and professional skepticism which may not always be easy. An interesting article from IFAC provides a 6 elements as to how judgment can be evaluated along with an illustration of each action. It is an excellent read and provides food for thought. 

READ ARTICLE HERE

CSRS 4200 Canadian Standard on Related Services

As previously communicated the new standard on compilation engagements was approved in October 2019 and is effective for compiled financial information for periods ending on or after December 14, 2021 (that is, effective for fiscal years ending December 31, 2022). The actual standard will be released in the Handbook in February 2020. I will send out a special update upon release along with links to any application guidance.  In the meantime, nothing new to report.


All the best in the new year. Don’t forget that today is the CPD Reporting Deadline. A reminder to those I have worked with over the year is that the training time and discussion on standards is all verifiable hours. I look forward to the upcoming year and working with you to implement all  upcoming changes, perform efficient and effective engagements and grow your practices. Please feel free to reach out at any time as I am here to assist as needed. 

Best Regards,
Kirsten S. Albo, FCPA, FCA
President