The 2020 update to the CPA Canada Professional Engagement Guide (PEG) was released in August. The following is a high level overview of what the key changes are from last year’s version of the PEG.
New Compilation (CSRS 4200) Practice Aids
The PEG now includes practice aids to assist practitioners with new the documentation requirements of Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. Included in the update are checklists for engagement acceptance/continuance, knowledge of the entity, and engagement completion. Also included is a sample compilation engagement letter and compilation engagement report. The materials also includes a case study that illustrates how to use the forms.
Amendments to Audit Forms
Various amendments to the audit forms within the PEG have been made including major changes for the impact of the revised CAS 540, Auditing Accounting Estimates and Related Disclosures. Also, the ASPE supplementary audit procedures worksheet has been updated to address significant changes to Section 3856, Financial Instruments, discussed in more detail below
Amendments resulting from changes to ASPE
The Financial Reporting Framework Checklists (FRF) have been updated for the changes to Section 3856, Financial Instruments, for the treatment of retractable and mandatorily redeemable shares issued in a tax planning arrangement and related-party transactions. They have also been updated for the presentation and disclosure changes for future income taxes made to Section 3465, Income Taxes.
For the specifics of changes to individual forms be sure to start you template update by reviewing the “What’s New” document in your PEG Subscription on Knotia.
If you are looking for an in-house training session on how to implement, navigate and appropriately document your engagement files using these forms contact us.