The end of April (almost). You made it. Over the past month, there has been activity on a number of fronts that you need to be aware of. A new standard approved, movement on the proposed LCE standard and the release of the new PEG forms have all taken place. And, due to the fact that many were busy in April, we are hosting a second presentation of the free one hour webinar on CSQM 1 on May 17 @ 3:00 pm CDT. This month’s update will help you be prepared and plan for the next few upcoming months. Read on…
Revised CAS 600 Group Audits Approved
The AASB recently approved revised CAS 600 related to Group Audits. Many audits today are audits of group financial statements, and these types of engagements can simple or very challenging. In a simple group structure you may not even realize you are performing a group audit. If you audit consolidated statements, most likely you are. Other group audits are much more complex and include intricate group structures, differences in laws and regulations and involvement of component auditors.
CAS 600 will become effective for audits of group financial statements for periods beginning on or after December 15, 2023. The final standard and the related conforming amendments will be issued in the Handbook in August 2022. I expect further guidance in the coming months so stay tuned.
(NOTE: There were no Canadian amendments so ISA 600 is the same as CAS 600.)
Proposed Standard on the Audits of LCEs
There is no major update on this project however it continues to move forward. The comment period closed January 2022 and the IAASB compiled the results of the 145 responses (mine was #51!!). The IAASB Task Force had their first meeting this past month for a detailed preliminary review of the comments received. Our AASB Advisory Group has two meeting scheduled in May to continue the Canadian conversation. I am excited to continue the discussion and determine next steps.
New PEG Forms Released
I sent out a special update on this topics, but in case you missed it. The new PEG forms have finally been released. There are significant changes to the suite of forms as they have been revised to address the requirements of Revised CAS 315.
Revised CAS 315 is effective for periods beginning on or after December 15, 2021. So, not until next year ends, that is December 2022. I am bringing this to your attention now as there are a few things to know immediately, although most can wait.
The new suite of PEG forms are intended to address the new requirements. Certain forms had moderate or minor changes and other less important forms were added or deleted. Over the coming weeks, I will be spending a lot of time with the new forms and understand how they link to the revised standard. This will help me help auditors when it comes to training and implementing the new forms for next year’s planning.
Stay tuned. I will be providing updates and practical guidance on Revised CAS 315 in the coming months both here and on LinkedIn. Follow my ASK KSA LinkedIn Page for updates.
Critical Thinking Enhances Professional Skepticism
Critical thinking: The way we should be approaching our engagements summed up in one excellent, and relevant, phrase. Critical thinking is one way to incorporate professional skepticism in any engagement.
Critical thinking is the ability to analyze and effectively break down an issue in order to make a decision or find a solution. It is a good way to address confirmation bias and is core to performing quality engagements. And at the heart, of critical thinking is the ability to formulate deep, different, and effective questions. An excellent article from Harvard Business Review provides tips to enhance your ability to interrogate even the most difficult topics.
[Free Webinar] Demystifying the New Quality Management Standards: Path to Implementation - May 17 @ 3:00 pm CDT
Due to the popularity and demand of the first session, we have decided to host a second session of our free CSQM 1 overview session. Learn about the requirements of the new quality standards, the impact on your firm and what to think about in getting started on your path to implementation.
What participants of the first session are saying:
🗣️”I just wanted to say that your presentation (and your co-presenter’s) was very clear and professional. I liked that you reviewed what the standard was, what was changing and what action was recommended.”
🗣️”Great course (as always)!!! Again, you have a way of making all these changes feel manageable!!”
🗣️”Thank you so much for this overview. You explained the requirements of the standard in a way that was very practical. I actually know what I need to do now, and where to start.”
Join us on May 17, at 3:00 pm CST (4:00 EDT) for this informative and practical session to help you start on your path to implementing the new standards by the effective date of December 15, 2022.
Now that you have reached the end of April, a very busy time for most, don’t forget to take a moment for yourself to recharge. Figure out what re-energizes you. For me, it is spending time with my little granddaughter, Chloe. What energizes you? Make sure you now do it. You will feel better for it and be better equipped to face new challenges. And, when you are ready, feel free to reach out. I am here to help you save time and achieve peace of mind.
Kirsten S. Albo, FCPA, FCA