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Section 8600, Reviews of Compliance with Agreements and Regulations [Superseded]

Ef­fec­tive date:

Applies to review engagement reports issued on or after January 1, 1989, except for subsequent amendments.

Overview

Section 8600, Reviews of Compliance with Agreements and Regulations, provides guidance in addition to that set out in Section 8100, General Review Standards, when a review engagement is undertaken to report on an enterprise's compliance with conditions established by provisions of an agreement or regulation.

It is important that this Section be read in conjunction with Section 8100. Examples of agreements requiring the public accountant to report on compliance include loan agreements and bond indentures, which usually impose on the borrowers a variety of covenants involving matters such as: (i) payments of interest or principal; (ii) maintenance of a specified current ratio; (iii) restriction of dividend payments; and (iv) use of the proceeds of sales of property.

His­tory of Sec­tion 8600

Date

Development

Comments

October

2017

The scope of Section 8600 has been amended to make it clear that it applies to review engagements to report on an enterprise's compliance with conditions established by provisions of an agreement or regulation as well as to review engagements to report on management's evaluation of the enterprise's compliance. This change is effective immediately.

Per a Message from the AASB Chair dated July 2017, “In light of the possible confusion about the application of the existing Sections, we have decided to revise the scope of Sections 5815 and 8600 to make it clear that they apply to all compliance reporting engagements. Our change will also allow the practitioner to adapt the wording of the practitioner’s report as necessary when undertaking an attestation compliance reporting engagement. For example, the revised scope would make it clear that Section 5815 may be used when reporting in accordance with National Instrument 81-102.”

March 2018

CSAE 3530, Attestation Engagements to Report on Compliance, and CSAE 3531, Direct Engagements to Report on Compliance, issued, replacing Sections 5800, 5815 and 8600.

CSAE 3530 and CSAE 3531 are effective for practitioner's reports dated on or after April 1, 2019.

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

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