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1173 Matters Arising After the Date of the Assurance Engagement Report
Apr-2015

Overview

This section outlines how to proceed and how to document the procedures performed in the exceptional circumstances where an auditor performs new or additional audit procedures or draws new conclusions after the date of an assurance engagement report.

CPA Canada Assurance Standards

Office

Annual Audit

Performance Audit, Special Examination, and Other Assurance Engagements

CAS 230.13. If, in exceptional circumstances, the auditor performs new or additional audit procedures or draws new conclusions after the date of the auditor's report, the auditor shall document: (Ref: Para. A20)

(a) The circumstances encountered;

(b) The new or additional audit procedures performed, audit evidence obtained, and conclusions reached, and their effect on the auditor's report; and

(c) When and by whom the resulting changes to audit documentation were made and reviewed.

Matters Arising after the Date of the Auditor's Report (Ref: Para. 13)

CAS 230.A20. Examples of exceptional circumstances include facts which become known to the auditor after the date of the auditor's report but which existed at that date and which, if known at that date, might have caused the financial statements to be amended or the auditor to modify the opinion in the auditor's report. The resulting changes to the audit documentation are reviewed in accordance with the review responsibilities set out in CAS 220, with the engagement partner taking final responsibility for the changes.

OAG Policy

Where the auditor finds it necessary to perform new or additional audit procedures or draw new conclusions after the date of the assurance engagement report, the auditor shall

  • obtain approval from the engagement leader to perform new or additional audit procedures or draw new conclusions;
  • document the specific reasons (circumstances encountered);
  • document the new or additional procedures performed, audit evidence obtained, and conclusions reached, and their effect on the report;
  • document when and by whom the resulting changes to audit documentation were made and reviewed; and
  • document the engagement leader’s approval obtained above. [Apr-2015]

OAG Guidance

Reference to CAS in forming Office policy and guidance

Without general guidance on matters arising after the date of the assurance engagement report in other Canadian assurance standards, CAS 230—Audit Documentation has been referred to for the principles and guidance on matters arising after the date of the assurance engagement report for all assurance engagements conducted by the Office. CAS 230 replaced the previous Handbook Section 5145—Documentation. The requirements and application guidance found in CAS may be viewed by clicking the “more” feature displayed in the standards information above.

Matters arising after the date of the assurance engagement report

Circumstances where an auditor performs new or additional audit procedures or draws new conclusions after the date of an assurance engagement report are exceptional. They may include circumstances where the auditor becomes aware of facts after the date of the assurance engagement report that existed at that date and, if known, might have caused financial statements to be amended or the auditor to modify the assurance engagement report.

Where new or additional audit procedures or new conclusions are drawn after the date of an assurance engagement report, consultation with the Auditor General and Quality Reviewer (where appointed) may be necessary. OAG Audit 3081 provides for additional guidance on consultations.

If matters arise after the date of the auditor’s report but before the assembly of the final audit file is completed and the file finalized, the team documents any new or additional procedures or new conclusions directly in the audit file.

In cases where the audit file has already been finalized, team members apply the policy stated in this section before referring to OAG Audit 1172 for guidance on where they may store documentation of any new or additional procedures or new conclusions.

Related Sections

OAG Audit 1172 Modifications to audit documentation after final assembly