New CASs in Canada
August 31, 2009
About the CICA
The Canadian Institute of Chartered Accountants (CICA) conducts research into current business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. It issues guidance on control, best practices and governance, publishes professional literature, develops continuing education programs and represents the CA profession nationally and internationally. Together with the provincial, territorial and Bermuda institutes/ordre of Chartered Accountants, the CICA represents a membership of approximately 74,000 CAs and 10,000 students in Canada and Bermuda. The CICA is a founding member of the International Federation of Accountants (IFAC) and the Global Accounting Alliance (GAA).
The CICA’s CAS Website
For the latest information to help you manage the transition to the new Canadian Auditing Standards (CASs) and Canadian Standards on Quality Control (CSQC 1), go to www.cica.ca/CAS, or to the website of your provincial institute/ordre. Make sure to bookmark our CAS site. It is updated regularly, and links you to the resources you need to ensure a smooth transition.
About this Guide
The CICA has prepared this reference guide to help you prepare for the new Canadian Auditing Standards (CASs) and Canadian Standards on Quality Control (CSQC 1). This Guide highlights areas of similarity and difference between CASs and existing Canadian standards as set out in the CICA Handbook – Assurance.
How the CICA Can Help
The CICA is the recognized leader in providing information and professional education that clarifies and aids in the application of standards in Canada. The new Canadian Auditing Standards represent a significant change for financial statement auditors, and the change to CSQC 1 will affect firms providing assurance services. Chartered Accountants of Canada, through the CICA and the provincial institutes/ordre, are committed to helping you prepare for the transition.
In June 2006, following extensive consultation with CAs and business leaders across Canada, the Canadian Auditing and Assurance Standards Board (AASB) announced its decision to adopt International Standards on Auditing (ISAs) as Canadian Auditing Standards (CASs), and International Standards on Quality Control (ISQC 1) as Canadian Standards on Quality Control, (CSQC 1). The changes to the standards will affect all financial statement auditors in Canada. ISAs and ISQCs are issued by the International Auditing and Assurance Standards Board (IAASB) and are used by auditors around the world. As of June 1, 2009, there are 36 ISAs dealing with financial statement audits and one comprehensive ISQC dealing with quality control standards for firms performing assurance engagements. All have been redrafted by the IAASB using a new clarity format which is clear, consistent, and easy to use. ISAs and ISQC 1 have been adopted as CASs and CSQC 1 with minimal amendments to accommodate unique Canadian circumstances. These minimal amendments are clearly identified in the new standards. The CASs come into effect for audits of financial statements for periods ending on or after December 14, 2010. Firms that provide assurance services are required to establish a system of quality control in compliance with CSQC 1 by December 15, 2009. Any change of this magnitude will inevitably need some preparation, planning and training. Those firms that have project leaders ready to prepare and plan for how to incorporate the CASs into their practices should find the transition to be relatively smooth. This concise reference guide provides an excellent starting place for the needed preparation and planning. Ron Salole Vice-President, Standards Canadian Institute of Chartered Accountants
Canada’s adoption of international standards for auditing and quality control is an important change for all CAs in public...