In this Update: Ethics; Rising Revenues for SMP; Succession Planning; Compliance Reporting
It is ironic the standard setters are so busy yet there is nothing new to report. Over the past few months, I provided you details about exposure drafts for auditing standards (CAS 315), compilation engagements (CSRS 4200) and quality management (CSQM 1 and CSQM 2) among other technical topics. But the standard setters are still deliberating on comments received so there is no new news on any of these fronts. I will continue to track status and let you know as soon as there are developments. So, in the meantime, I have highlighted other random topics of interest I have come across. Read on…
With the new professional development requirement to have at least four hours of verifiable PD specifically related to ethics, this subject matter is a hot topic these days. In fact I am developing an Ethics Workshop to be delivered to firms to help meet this requirement in an interesting and unique way. Feel free to contact me about delivering “Putting Ethics into Practice” to the members of your firm. While preparing this workshop I came across an article that I think may be of interest to you. “Paying Professional Ethics More than Lip Service” provides guidance on building trust in business and how to be anchored by fundamental ethical principles.
Rising Revenues for Sole Practitioners and Small Firms
As a sole practitioner or a partner of a small to mid-sized firm, it can be challenging to gather competitive information on how you are doing compared to your peers. “Rising Revenues for Sole Practitioners and Small Firms” summarizes the results of the 2019 Accounting and Bookkeeping Operations and Technology. According to the survey, 36.2% of respondents earned more than $150,000 in revenue for 2018 compared to only 31.8% in 2017. How do you compare?
This past month I led a practitioner forum on the topic of human resources. It was a very interesting session with a variety of topics discussed including recruiting, retaining, compensating and motivating staff. One topic we did not cover in detail but is very important is building your team is succession planning. To secure the future succession, and success, of your firm, it is important to start with what kind of team you must create. An article from Accounting Today provides an interesting perspective on building teams and how planning for such breaks down to two categories: composition and development.
I have included Compliance Reporting as a topic in previous months but as I have received numerous questions on this topic over the past month I thought it worthwhile raising again. Often government (such as Manitoba Housing), and other oversight, agencies will include the type of report they want issued in the agreement. However these agencies are not the standard setters and do not understand our requirements as practitioners. It is important to educate these agencies on the types of reports that can be issued. The new standards 3530 Attestation Engagement to Report on Compliance or CSAE 3531 Direct Engagement to Report on Compliance are the reports to be issued related to compliance with lease, funding or other debt agreements. These standards are effective for compliance reports dated on or after April 1, 2019. If you want a pair of fresh eyes to read your report before you release it, just reach out.
As mentioned in the introduction, I will keep you updated on technical developments as they happen. In the meantime, if you have any questions on any topic or would like further information on the Ethics Workshop, please feel free to contact me. We are headed into the time where practice inspections are taking place and it is a good time to ensure you have the right processes in place to address quality and other matters. I am here to help as needed. Have a great weekend.
Kirsten S. Albo, FCPA, FCA
In this Update: CRA Tax HelpLine; Compliance Reporting Standards; CPA Manitoba’s Practitioner Forum; Standards Updates
The March update is being sent this first day of April, but I promise, no April Fool’s jokes within, only a few focused topics this month. For most, April is a time for heads down to work as it is a very busy month. A few critical items to be aware are included below. Read on…
Dedicated Telephone Service – CRA Tax Help for Income Tax Service Providers
CRA is continuing their Dedicated Telephone Service (DTS) for the 2018 filing season. The DTS was a three-year pilot project started last year which offers free technical help for small or medium income tax service providers. There is a very simple registration process after which you receive a telephone number and a personal telephone access code to connect with DTS. The definition of a small to medium sized firm has expanded from the prior year. This is a good service that may help you save time.
New Compliance Reporting Standards Effective Today
In addition to an audit or review report, you may be requested to report on compliance with lease agreements, funding or debt agreements or other agreements. The new standards CSAE 3530 Attestation Engagement to Report on Compliance and CSAE 3531 Direct Engagement to Report on Compliance are effective for compliance reports dated on or after April 1, 2019. CPA Canada issued an Audit and Assurance Alert about the new requirements including understanding the difference between the two types of engagements. The report has changed so it is important to ensure you have the right processes in place to ensure the right report goes out the door.
CPA Manitoba Practitioner’s Forum
CPA Manitoba’s Practitioner Forum on May 15 (5 pm-7pm) will be facilitated by none other than yours truly. This round table event series brings together CPAs in public practice to learn and discuss relevant topics. This month’s topic is related to HR. I will be leading a discussion on attracting, retaining, developing and motivating staff. The results of a provincial salary survey will also be presented to better help you understand the competitive market. Please join me if you can.
Other Standards Updates
In researching topics for this month’s update, I perused the Financial Reporting & Assurance Canada website as I always do. Nothing of significance to report back to you as of yet. The AASB boards are still deliberating comments on the various exposure drafts including Compilation Engagements, Agreed Upon Procedures, Reporting on Controls at a Service Organization and CAS 315 Identifying and Assessing the Risk of Material Misstatement. I will provide further update on all of these when issued. The only other matter of significance was information on the fact that the International Standards Board is developing an exposure draft on standards on quality control, now being referred to as Quality Management. This means the Canadian Exposure draft is to follow shortly. When issued I will provide you a summary of the impact this may have on your practice.
One last item. Don’t forget CPA dues are payable as of today and if paid after April 15, late charges will apply. You should have received a notice from your provincial CPA body as applicable. I hope the month is a good one and not too chaotic. As you work through the month, please feel free to call with any questions you may have. I am here to help you as needed. In the meantime, happy spring!!
Kirsten S. Albo, FCPA, FCA