The objective of the Assurance Update is to provide practitioners and firms with an overview of recent changes to assurance standards, as well as review the status of current projects; upcoming 2018 exposure drafts and invitation to comments.
The most significant changes in 2018 will include standards relating to auditor reporting, which will be effective for effective for audits of financial statements for periods ending on or after December 15, 2018.
The course will examine the amendments to:
a) Auditor reporting requirements – these changes include:
I. Opinion paragraph presented first
II. Enhanced auditor reporting on going concern and independence
III. Expanded description of auditor’s responsibilities and key features in an audit
b) Auditor reporting (Special considerations) – Amendments to CAS 800 and CAS 805 changes as a result of the significant revisions to auditor reporting standards and voluntary communication of key audit matters.
c) Auditor reporting on summary financial statements – Amendments to CAS 810 to address issues related to key audit matters, going concern and other information.
d) Financial Statement disclosures – Impact of assessing and responding to the risk of material misstatement relating to Financial Statement Disclosures, specifically examining amendments to CASs 200, 210, 240, 260, 300, 315, 320, 330, 450 and 700.
e) Responsibilities relating to other information - Amendments to CAS 720 to specify the responsibilities of the auditor.
Where possible, the course will provide examples and sample reports to generate discussion relating to potential implementation issues of these new standards.
The course will examine the proposed standards for 2018, the status of key projects and exposure drafts:
• CAS 600 Group audits – Review the status of the project and briefly discuss proposed changes to CAS 600.
• CAS 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures - Examine key issues such as the scalability of the requirements for simple and complex estimates, exercising professional skepticism and requirements related to documentation
• CAS 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment – Discuss key proposals such as the definition of inherent risk factors; and requirements related to identifying and assessing the risks of material misstatement, including a separate assessment of inherent and control risks.
• Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements. Examine key proposals such as the components of firm culture that impact quality, monitoring and remediation processes, requirements addressing the firm’s technology, etc.