We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
In June 2017, the Auditing and Assurance Standards Board (AASB) issued new and revised auditor reporting standards and related conforming amendments. These standards were developed in response to requests from users of audited financial statements for a more informative auditor’s report that includes communication of significant matters in the financial statements and the conduct of the audit.
The new and revised auditor reporting standards require the reporting of going concern matters, and entity-specific other information. The new auditor’s report also provides improved transparency regarding the scope of the auditor’s work and the roles and responsibilities of the auditor, management and those charged with governance.
The equivalent International Standards on Auditing require that the auditor’s reports of all listed entities include the communication of key audit matters. This requirement has not yet been included in the Canadian Auditing Standards as the AASB is deliberating how best to address the differences between the Canadian and US Public Company Oversight Accountability Board’s (PCAOB) new auditor reporting standards, including key audit matter reporting and the implications for auditor’s reports on the financial statements of dual-listed entities. Currently, the Canadian auditor reporting standards state that auditor’s reports are only required to communicate key audit matters if law or regulation requires the auditor to do so. Auditors may also voluntarily choose to communicate key audit matters. The AASB is working with members of the Auditor Reporting Implications of the New Canadian Auditing Standards Task Force to develop illustrative combined auditor’s reports for dual-listed entities for approval by the US Securities and Exchange Commission.
The new and revised auditor reporting standards are effective for audits of financial statements for periods ending on or after December 15, 2018. Earlier application is permitted. The effective date for key audit matters reporting for exchange-listed entities will be decided at a future AASB meeting.
CPA Canada recently issued an Audit & Assurance Alert that summarizes the significant changes and expected benefits of the changes to the auditor’s report. The CPA Canada resource also includes an illustration of the new auditor’s report. Please click
here to access the CPA Canada Alert.
CPA Canada also issued a separate Audit & Assurance Alert on CAS 701
Communicating Key Audit Matters in the Independent Auditor’s Report which raises awareness about the requirements pertaining to key audit matters when CAS 701 is applied. Please click
here to access the CPA Canada CAS 701 Alert.
Lastly, CPA Canada issued frequently asked questions (FAQs) to address key concepts and questions relevant to management and audit committees relating to the new and revised auditor reporting standards. Please click
here to access the FAQs.
For more information on the financial reporting library, contact a local
MNP Assurance Professional, or
Jody MacKenzie, Director, Assurance Professional Standards.
This communication contains a general overview of the topic and is current as of November 24, 2017. The application of the principles addressed will depend upon the particular facts and circumstances of each individual case. Accordingly, this publication is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional who can address any variance that may be required to reflect your circumstances. Please contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2017. All rights reserved.
Find an office near me