This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

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

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

Date

De­vel­op­ment

Com­ments

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.

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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.