FRANÇAIS

Subject sections: Other CICA sites:

Canadian Standards in Transition > Canadian Auditing Standards > FAQs

FAQs

These Frequently Asked Questions (FAQs) have no authoritative status. They have been developed to address commonly-asked questions by readers of the CICA Handbook – Assurance with respect to recent changes that have been made. They are not exhaustive and reference to the relevant standards should always be made. Reading FAQs is not a substitute for reading the standards themselves.

About Canadian Auditing Standards (CASs)
The CICA Handbook – Assurance
Agreeing the Terms of Reference
Quality Control
Materiality
Group Audits
Internal Control
Dating the Auditor's Report
Auditor's Report
Communications
Review Engagements

About Canadian Auditing Standards (CASs)

1. What are ISAs and CASs?

2. How widespread is the use of ISAs internationally?

3. When will CASs come into effect?

4. Why is the AASB adopting ISAs as CASs?

5. What are the benefits of adopting Canadian Auditing Standards for auditors?

6. What are the benefits of adopting Canadian Auditing Standards for clients?

7. What is the Clarity Format?

8. How closely does the AASB intend to follow ISAs? Will CASs have adaptations and modifications?

9. What will the impact of the transition to CASs be and how do CASs compare with existing standards for audits of financial statements?

10. How should I prepare for the transition to CASs?

11. How will the transition to ISAs adopted as CASs affect standard setting in Canada?

12. How can Canadian CAs have input into the international standard-setting process?

13. How can I learn more?

The CICA Handbook – Assurance

14. Where do I find out about the structure of the CICA Handbook – Assurance?

15. How has the structure of the CICA Handbook – Assurance changed as a result of the issuance of the CASs?

16. Why have some Assurance and Related Services Guidelines been deleted from the CICA Handbook – Assurance as a result of the issuance of the CASs?

17. Where do I find information about the authority attaching to standards in the CICA Handbook – Assurance?

18. What constitutes GAAS for an audit of financial statements?

19. Where can I find out about differences between the CASs and International Standards on Auditing?

20. Why is the Handbook divided into "Parts"?

21. How do I know which Part of the CICA Handbook – Assurance to refer to for my audit engagement?

22. What are Basis for Conclusions?

23. Do the CASs apply to audits of all entities?

24. My client is not using IFRSs in the preparation of their financial statements. Would the CASs still apply to the audit of their financial statements?

25. Do the CASs apply in the audit of a non-profit organization?

Agreeing the Terms of Reference

26. Who is responsible for selecting the applicable financial reporting framework to be applied in the preparation of the financial statements?

27. If I am engaged to report on general purpose financial statements for a Canadian corporation, what types of frameworks would be considered acceptable?

28. In the case where legislation does not specify the financial reporting framework that the entity should use in preparing its general purpose financial statements, what financial reporting frameworks are relevant in determining the acceptability of the applicable financial reporting framework?

29. Can an auditor report on general purpose financial statements prepared using a financial reporting framework that is other than a financial reporting framework included in Canadian GAAP, including IFRSs, or US GAAP?

30. Can the auditor accept the audit engagement if management refuses to acknowledge the pre-conditions for an audit?

31. On recurring audits, should the auditor obtain a new audit engagement letter each period?

Quality Control

32. What is CSQC 1?

33. When did CSQC 1 come into effect?

34. I am a sole practitioner and have always inspected my own completed engagements as part of the monitoring process. Is this practice still acceptable under CSQC 1?

35. As a sole practitioner, what should I do to comply with the monitoring requirements in CSQC 1?

36. What factors should I consider in selecting completed engagements for inspection as part of the monitoring process?

Materiality

37. Do the CASs change the requirements with respect to determining materiality?

38. When do I need to determine a materiality level or levels for particular classes of transactions, account balances or disclosures?

39. What is performance materiality, why is it required, and how is it determined?

Group Audits

40. My audit clients consist mainly of not-for-profit organizations. I do not use the work of other auditors. Would the new requirements on audits of group financial statements impact me?

41. Are the differences between CAS 600 and Section 6930 significant?

Internal Control

42. Can I use the CASs to audit the effectiveness of internal controls of an entity?

43. Do I have to communicate all deficiencies in internal control in writing that I have identified during an audit?

44. Do I need to consider all aspects of an entity’s internal control?

Dating the Auditor's Report

45. Do I date the auditor’s report on the date that I release it?

46. Do I need to have written representations by management signed and dated in order to date the auditor’s report?

47. My engagement will be subject to an engagement quality control review. Can I date the auditor’s report before this EQCR is complete?

Auditor's Report

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

49. What is an Emphasis of Matter paragraph?

50. What is an Other Matter paragraph?

Communications

51. Which Canadian Auditing Standards address auditor communications with those charged with governance during the audit?

52. Are there new requirements regarding communicating deficiencies in internal control to those charged with governance and management?

53. How will communications with those charged with governance and management be different under the CASs?

Review Engagements

54. Are the concepts in the review engagement standards consistent with the concepts in the new CASs?

55. Can public accountants perform a review engagement on general purpose financial statements prepared using a financial reporting framework that is other than Canadian- GAAP?

56. Do I have to communicate at least annually my independence to those charged with governance with respect to a review engagement?

	Privacy Statement \| Copyright \| Sitemap THE CANADIAN INSTITUTE OF CHARTERED ACCOUNTANTS 277 Wellington Street West Toronto ON M5V 3H2 Canada Tel: 1.416.977.3222 Fax: 1.416.977.8585