48. How has the auditor’s report changed as a result of the issuance of the CASs?

Please refer to the CICA Explanatory memorandum “Reporting on Financial Statements under Canadian Auditing Standards” for further guidance. The format and wording of the auditor’s unqualified report is different from the previous Canadian auditor’s standard report in the following ways:

• The title of the auditor’s report clearly conveys that the report is that of an independent auditor.
• Canadian Auditing Standard 700, Forming an Opinion and Reporting on Financial Statements, requires the use of subheadings to emphasize the purpose of the respective paragraphs in the auditor’s report.
• The description of management’s responsibility is expanded to indicate that it includes responsibility for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
• The scope paragraph is replaced with a new paragraph that contains an expanded description of the auditor’s responsibility
• Where the financial statements are prepared in accordance with a fair presentation framework, the description of the audit in the auditor's report shall refer to "the entity's preparation and fair presentation of the financial statements" or "the entity's preparation of financial statements that give a true and fair view," as appropriate in the circumstances.
• The auditor’s report states that the auditor believes that the audit evidence the auditor has obtained is sufficient and appropriate to provide a basis for the auditor’s opinion.
• The auditor’s report must be in writing, be signed in the name of the audit firm, the personal name of the auditor, or both.
• The auditor’s report must name the location in the country or jurisdiction where the auditor is located.