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Canadian Accountants Prepare for Reporting Key Audit Matters

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Nov 07, 2017

On November 7, 2017, the Canadian Accountant released an article that includes an update on the new information auditors will need to include in audit reports. Darrell Jensen, AASB Chair, talks key audit matters, next steps and what Canadian stakeholders had to say.

Auditors of public companies listed on the TSX will be required to report significant new information in audit reports, likely as of December 2020, according to the Auditing and Assurance Standards Board (AASB).

What will a key audit matter look like to the average investor? Mr. Jensen says that, of necessity, the auditor’s report will be longer and more “entity-specific” than it has been in the past. “The discussion of key audit matters will appear near the front but after the opinion,” he says.

“The context will be laid out, then there will be some number of key audit matters — if the auditor has determined that there are key matters to report — and the auditor will be required to disclose what the nature of the key audit is, why they’ve considered it to be a key audit matter, where the disclosures related to that key audit matter appear in the financial statements, and then, finally, what the auditor has done to respond to that particular circumstance in their audit approach.”

Review the full article on the Canadian Accountant's website.

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