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AuG-46, Communications with Law Firms under New Accounting and Auditing Standards

Ef­fec­tive date:

August 1, 2010

[This Guideline is to be read in conjunction with the Preface to the CPA Canada Handbook – Assurance.]


This new Assurance and Related Services Guideline AuG-46, Communications with Law Firms under New Accounting and Auditing Standards, provides interim guidance to assist financial statement preparers (clients), auditors and law firms to communicate with respect to claims and possible claims in circumstances outside the scope currently contemplated by the current Joint Policy Statement Concerning Communications with Law Firms Regarding Claims and Possible Claims in Connection with the Preparation and Audit of Financial Statements which is an Appendix to Canadian Auditing Standards (CAS) 501, Audit Evidence — Specific Considerations for Selected Items.

These circumstances are as follows: (i) when the financial statements are prepared in accordance with IFRSs including in particular IAS 37 Provisions, Contingent Liabilities and Contingent Assets in Part I of the CPA Canada Handbook – Accounting; or (ii) when the auditor is conducting the audit in accordance with the CASs and, therefore, must follow the requirements for dating the auditor's report in CAS 700, Forming an Opinion and Reporting on Financial Statements, paragraph 41, that will affect the dating of the inquiry and response letters sent under the Joint Policy Statement.

His­tory of AuG-46




April 2016

New Joint Policy Statement released

The new Joint Policy Statement is effective for inquiry letters dated on or after December 1, 2016.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

  • None

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