Our Clear-Cut series of briefs address common issues that practitioners face in an easy to read and straightforward fashion. Download these bite-sized reports for must-know information on topics such as Audit, Review Engagements, ASPE, ASNPO, IFRS, and more.
Disclosures in the New Auditing Standards
Auditors can become closely involved in assisting clients with required financial statement disclosures, presuming independence is maintained, that the work performed to audit these disclosures can be insufficiently documented. The updated auditing standards are requiring auditors to appropriately document the procedures performed on disclosures throughout the entire audit process.
Re-adoption of ASPE
A common question among practitioners is whether the exemptions under Section 1500 First-time Adoption are applicable under re-adoption of ASPE. We have found and summarized CPA Canada guidance that answers this question.
Investments in Digital Currency Wallets
In this Clear-Cut we have applied a decision tree which leads us to what we believe is the best classification and measurement of digital currency wallets under ASPE.
Reporting on Organizations Incorporated under the British Columbia Societies Act
The new BC Societies Act came into effect on November 28, 2016 and applies to all societies as at this date with a two-year transition period which ends on November 28, 2018. The requirement for the Auditor to report that the accounting principles have been applied on a consistent basis with the prior year has carried forward into the new Act from the previous legislation. Here we provide a sample Auditor’s Report that includes such wording.
Disclosures Under the British Columbia Societies Act
The new BC Societies Act requires a number of disclosures, which were included to promote transparency and accountability. The disclosures relate to director, employee and contractor compensation as well as certain loans or guarantees made by the society. The following provides an overview of these disclosure requirements with examples.
Reporting on Not-For-Profit Review Engagements – Qualified Conclusion
With the issuance CSRE 2400 Engagements to Review Historical Financial Statements, we now have better guidance when the same issue of completeness of not-for-profit fundraising and donation revenue arises in a Review Engagement of a not-for-profit organization. Here we include a copy of a sample review engagement report with such wording included.
Third Party use of Management Letters and Other Communications
In this installment we discuss the issue of third parties requesting and using management letters and other communications made to management and those charged with governance in connection with an audit or review engagement. Specifically, we provide sample wording of notifications that you could include in these communications to help limit your exposure.
Disclosure of Carrying Amounts of Categories of Financial Instruments
In this piece we explore how we can meet the disclosure requirements of Section 3856 Financial Instruments without including wording that confuses and intimidates users of the financial statements.
Disclosure of Accounting Policies and Accounting Policy Changes
The 2017 Annual Improvements to ASPE included some revisions to the way that accounting policy changes are disclosed. Here we examine what is specifically required for including accounting policies in the notes to the financial statements as well as these recent changes to the disclosure requirements.
Reporting on Not-For-Profit Audits – Qualified Opinions
Classification of Related Party Balances
Balance Sheet Presentation
The guidance for what constitutes a current asset or a current liability is included in Accounting Standards for Private Enterprises (ASPE) Section 1510 Current Assets and Current Liabilities. In this Clear-Cut, we provide a more in-depth overview of the requirements for presenting and classifying debt, callable debt and in addressing debt covenant violations.