CAS 501 - Appendix - Joint Policy Statement Concerning Communications with Law Firms Regarding Claims and Possible Claims in Connection with the Preparation and Audit of Financial Statements
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Effective date: |
Effective for audits of financial statements for periods ending on or after December 14, 2010, except for subsequent amendments. |
Overview
CAS 501, Audit Evidence — Specific Considerations for Selected Items deals with specific considerations by the auditor in obtaining sufficient appropriate audit evidence, including with respect to litigation and claims involving the entity.
The Appendix to CAS 501 contains the Joint Policy Statement Concerning Communications with Law Firms Regarding Claims and Possible Claims in Connection with the Preparation and Audit of Financial Statements. The Joint Policy Statement has been approved by both The Canadian Bar Association and by the Auditing and Assurance Standards Board (AASB).
History of Section CAS 501
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Date |
Development |
Comments |
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October 2015 |
The AASB approved a revised “Joint Policy Statement Concerning Communications with Law Firms Regarding Claims and Possible Claims in Connection with the Preparation and Audit of Financial Statements” as well as conforming amendments to CAS 501. |
The revisions will be effective for inquiry letters dated on or after December 1, 2016 and are expected to be reflected in an April 2016 Handbook update. See Completed Project. |
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April 2016 |
The AASB released the new Joint Policy Statement |
Paragraph CA25b has been added to clarify the interrelationship between CAS 501 and communications with in-house legal counsel. Paragraph CA25c has been added to indicate that when communication from legal counsel is to be used as audit evidence, the auditor is to consider the relevance and reliability of the information upon which it is based. 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