OBJECTIVE:
An auditor must conduct audit engagements in accordance with Canadian Auditing Standards (CAS), regardless of the complexity, size or nature of the client.  However, it can be challenging to understand how to apply certain CASs to a simple entity in an efficient and effective manner.  Through the use of case studies, practical examples and interactive discussions, this seminar will provide auditors a better grasp of CAS requirements along with how to apply the standards in a practical way in the audit of a simple, or less complex, client.

Auditing simple entities has been, and continues to be, a challenge for practitioners as they struggle to balance the application of the application of the Canadian Auditing Standards (CAS) while still conducting an efficient and effective audit.  This is a valuable course as it helps practitioners better comprehend the standards and how to apply them which in turn helps them conduct better quality engagements.

The seminar will help auditors to better understand and apply of CAS requirements in the context of a simple entity.  The seminar will review the key concepts of CAS and their application taking into consideration unique aspects specifically related to the characteristics of a simple entity.  Using case studies and practical examples along with the opportunity to ask questions and participate in interactive discussions, this session will review various alternatives in meeting CAS requirements resulting in more effective and efficient engagements.

The seminar will also provide a high-level overview of upcoming standards changes including Revised CAS 315, CSQM 1 and 2 and Revised CAS 220.

WHO WILL BENEFIT:
Practitioners who audit entities which, based on size and characteristics, are classified as simple, or less complex, in nature.  Practitioners who serve and/or prepare financial statements for private enterprises.

LEARNING OUTCOMES:
Participants of the course will be better able to:

• interpret CASs in the context of a simple entity,
• identify challenges in applying the CASs in the audit of a simple entity and design appropriate audit responses to ensure conduct quality audits,
• recognize opportunities for efficiencies,
• select appropriate tools and templates to meet documentation standards,
• apply case study facts to the audit of other client engagements, and
• design and perform appropriate audit procedures to address the risk of material misstatement.

CONTENT:

•  Introduction – CAS overview, definition of simple entity, examination of Discussion Paper on LCEs
• Initial activities – client acceptance and continuance, engagement letters
• Risk assessment procedures – materiality, understanding the entity, team planning meeting, additional required risk assessment procedures
• Risk assessment procedures – understanding the components of internal control, design and implementation of controls
• Risk assessment procedures – assessing the risk of material misstatement
• Responding to risk – substantive audit procedures (including analytical review procedures and tests of detail), control testing opportunities, journal entry testing, samplin
• Concluding and reporting – communications with TCWG, assessing misstatements, audit report 

PREREQUISITES:
Participants should be familiar with the Canadian Auditing Standards.  The material does not review all of the standards, but rather focusses on those standards practitioners have identified as challenging to apply in the audit of a simple entities.  A strong working knowledge of the standards will help to ensure that the material is not taken out of context.

COURSE LEADER: KIRSTEN ALBO, FCPA, FCA