Alert: CPA Canada Guidance for Audit Committees

Category: Assurance

Alert: CPA Canada Guidance for Audit Committees

Chartered Professional Accountants of Canada (CPA Canada) has issued new publications to help Audit Committees enhance their oversight of the external auditor. These publications were developed through collaboration with the Canadian Public Accountability Board (CPAB) and the Institute of Corporate Directors (ICD) as well as a group of senior Audit Committee members. The guidance and tools are a result of the recommendations and conclusions of the Enhancing Audit Quality (EAQ) initiative completed by CPA Canada and CPAB in 2013.

The Oversight of the External Auditor – Guidance for Audit Committees publication provides an overview of activities that Audit Committees should perform to assist them in overseeing and assessing the effectiveness of the external auditor. The Annual Assessment of the External Auditor – Tool for Audit Committees is a companion publication and annual assessment tool intended to be used to assess three key factors of audit quality: independence, objectivity and professional scepticism; quality of the engagement team; and quality of communications and interactions with the external auditor. The Periodic Comprehensive Review of the External Auditor – Tool for Audit Committees publication and tool may be used by Audit Committees in conducting, at least every five years as recommended by the EAQ initiative, a deeper and broader assessment of its external auditors. Guidance on the preparation and content of the Audit Committees’ public report on the comprehensive review is also provided.

All of the above-noted publications can be accessed on the CPA Canada website or by clicking here.

This communication contains a general overview of the topic and is current as of June 3, 2014. 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 2014. All rights reserved.

Contact a member of MNP's Financial Reporting Team

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.