Adam Moretto
0916913
SUB IAP 2
1. Canadian Audit Standards offer standards for a ‘typical’ assurance engagement. Other
Canadian Standards offer standards for atypical engagements that may need further clarification.
2. The Canadian Audit Standards are in numerical order. Furthermore, they are in order of how
they would be faced during a real audit. Starting with agreeing to engagement terms all the way
to the final report.
3. Assertions about classes of transactions, account balances, and related disclosures
A129.
Assertions used by the auditor in considering the different types of potential misstatements that
may occur may fall into the following categories:
(a) Assertions about classes of transactions and events, and related disclosures for the period
under audit:
(i) Occurrence — transactions and events that have been recorded or disclosed, have occurred
and such transactions and events pertain to the entity.
(ii) Completeness — all transactions and events that should have been recorded have been
recorded, and all related disclosures that should have been included in the financial statements
have been included.
(iii) Accuracy — amounts and other data relating to recorded transactions and events have been
recorded appropriately, and related disclosures, have been appropriately measured and described.
(iv) Cutoff — transactions and events have been recorded in the correct accounting period.
(v) Classification — transactions and events have been recorded in the proper accounts.
(vi) Presentation — transactions and events are appropriately aggregated or disaggregated and
clearly described, and related disclosures are relevant and understandable in the context of the
requirements of the applicable financial reporting framework.
(b) Assertions about account balances, and related disclosures, at the period end:
(i) Existence — assets, liabilities, and equity interests exist.
(ii) Rights and obligations — the entity holds or controls the rights to assets, and liabilities are
the obligations of the entity.
(iii) Completeness — all assets, liabilities and equity interests that should have been recorded
have been recorded, and all related disclosures that should have been included in the financial
statements have been included.
(iv) Accuracy, valuation and allocation — assets, liabilities and equity interests have been
included in the financial statements at appropriate amounts and any resulting valuation or
allocation adjustments have been appropriately recorded, and related disclosures have been
appropriately measured and described.
(v) Classification — assets, liabilities and equity interests have been recorded in the proper
accounts.
(vi) Presentation — assets, liabilities and equity interests are appropriately aggregated or
disaggregated and clearly described, and related disclosures are relevant and understandable in
the context of the requirements of the applicable financial reporting framework.
4.
A) Nature, Timing and Extent of Audit Procedures
B) The Competence, Capabilities and Objectivity of the Auditor's Expert
C) Obtaining an Understanding of the Field of Expertise of the Auditor's Expert
D) Agreement with the Auditor's Expert
E) Evaluating the Adequacy of the Auditor's Expert's Work
F) Reference to the Auditor's Expert in the Auditor's Report
5.
Reasonable Assurance:
-CSAE 3000: Attestation Engagements Other Than Audits
-CSAE 3001: Direct Engagements
Negative Assurance:
-Section 9100: Reports on the Results of Applying Specified Auditing Procedures to Financial
Information
-Section 7200: Auditor Assistance to Underwriters and Others.
No Assurance
-Section 9200: Compilation Engagements
-Section 9110: Agreed Upon Procedures Regarding Internal Control
6.
Reasonable Assurance: High, but not absolute level of assurance. Always risk. Used for audits.
Negative Assurance: Due diligence type of scenarios.
No Assurance: typically used for internal purposes.
