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Trust Reporting for LSBC or BCFSA

Earlier in May, CPABC issued a practitioner’s alert in their eNews, reminding practitioners that completing trust reports for the Law Society of BC (LSBC) or BC Financial Services Authority (BCFSA) should be done under the CSRS 4400 Agreed Upon Procedures (AUP) standard. The newly revised AUP standards were issued in August 2020 and have been effective for any engagements entered into after January 1, 2022. Unfortunately, many practitioners are unaware of these new requirements or, more likely, of their applicability to trust reporting. The failure to adopt these requirements leads to reportable deficiencies during practice reviews.

Although the procedures to be executed are directed by the regulations and requirements of the LSBC and BCFSA, the AUP requirements cover client acceptance, reporting requirements, and engagement finalization. The most significant change under these new standards is the need to report both on all findings from procedures performed and on any exceptions noted. Unfortunately, the profession has not released substantive engagement templates for AUP engagements.

Clearline Consulting has created template files for these engagements to assist with this. These templates include:

  • A draft engagement letter
  • Acceptance and finalization checklists
  • A draft representation letter
  • A template Agreed-Upon Procedures Report, including the reporting structure for findings and exceptions

These templates are designed to comply with the LSBC and BCFSA requirements as posted on their respective websites as of March 2022. We recommend that firms download the most current instructions from these regulators annually or at the start of each new engagement to ensure compliance.

Additionally, issuing these engagements requires a review engagement license in BC.

For more detailed guidance on the CSRS 4400 Agreed Upon Procedures standard, refer to the CPA Canada assurance handbook in Knotia, which includes many less commonly used standards under “Other Canadian Standards” and “Assurance and Related Services Guidelines.”

Useful Links:

Clearline Consulting Templates for BCFSA Trust Accountants Reports

Clearline Consulting Templates for LSBC Trust Accountants Reports

CPABC KBase Collection for CSRS 4400 Agreed Upon Procedures Engagements Stay updated with the latest standards and ensure your engagements comply with the new AUP requirements.



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