Question

In Canada, practitioners follow the standards in the CPA Canada Handbook – Assurance for audit and other assurance services. These include Canadian Auditing Standards (CASs), which have been adopted from International Standards on Auditing (ISAs), with some amendments.

The CASs are issued by the Auditing and Assurance Standards Board (AASB), who also issues other pronouncements and non-authoritative material included in the CPA Canada Handbook – Assurance. The CASs only apply to all audits of financial statements for all types of entities. Other Canadian standards issued by the AASB in the CPA Canada Handbook are the Canadian Standards on Quality Control (CSQC) and Other Canadian Standards (OCS). There are several different types of assurance engagements other than an audit of financial statements discussed below.

describe "in your own words" Specialized Areas - CSRE 2400 Engagements to Review Historical Financial Statements

the general purpose of the engagement

the auditor's responsibilities under each for accepting the engagement

type of assurance provided (1 mark)

Answer 1

Chartered Professional Accountants of Canada (CPA Canada) is committed to supporting Canadian practitioners and members in the industry to better understand and apply auditing and assurance standards, including Canadian Auditing Standards (CAS) and other assurance standards. With this objective in mind, we offer a variety of high-quality guidance and support resources.

Specialized Areas - Auditors Consent to the use of the Auditor's Report included in an Offering Document (7150)

1. The general purpose of the engagement:-

It deals with an auditor's responsibilities in responding to requests to consent to the use of a report of the auditor included in an offering document. Consenting to the use of a report(s) of the auditor in an offering document is a matter of contract between the auditor and the entity. Accordingly, the auditor is never obliged to consent to the inclusion of a report of the auditor in an offering document.

2. the auditor's responsibilities under each for accepting the engagement:-

Documents currently within the scope of Section 7500 that will be included within the scope of the proposed Section 7170 include:

• the entity’s audited financial statements; or

• the entity’s annual report that contains the entity’s audited financial statements and the auditor’s report thereon.

Several documents currently within the scope of Section 7500 will be excluded from the scope of the revised Section 7170 unless they meet the definition of a designated document under the revised Section 7170. These documents include the entity’s:

• MD&A;

• material change report; and

• AIF.

The AASB understands that auditors are rarely, if ever, requested to consent to the use of the auditor’s report in connection with the MD&A, material change report and the AIF. If the auditor is requested to consent in connection with such a document, the auditor would refer to CSOA 5000 unless the document meets the definition of a designated document under proposed Section 7170.

3. type of assurance provided-:

To provide reasonable assurance that financial statements are free from material misstatements.

Related Services -Agreed Upon Procedures Regarding Internal Control over Financial Reporting (9110)

1. The general purpose of the engagement;- Section 9110, Agreed-upon Procedures regarding Internal Control over Financial Reporting, establishes standards and provides guidance on the public accountant's professional responsibilities in conducting an agreed-upon procedures engagement regarding internal control over financial reporting and on the form and content of the report that the public accountant issues in connection with such an engagement. This Section may also serve as guidance for engagements to perform agreed-upon procedures related to other aspects of an entity's system of internal control.
2. the auditor's responsibilities under each for accepting the engagement:  This Section does not apply to engagements to report on an entity's internal control over financial reporting to external parties who are not in a position to determine whether the agreed-upon procedures to be performed by the public accountant are sufficient and appropriate for their purposes. For guidance on such engagements, see CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information.