New and revised auditor reporting standards

For all audits

Auditor’s Opinion 

The format of the audit report has changed, with the auditor’s opinion presented at the beginning of the report, followed by the basis for opinion.

Auditor’s Independence and Ethics 

The new auditor’s report contains an affirmative statement of independence and fulfillment of relevant ethical responsibilities. 

Going Concern

Enhanced auditor reporting on going concern:

• Description of management and auditor’s responsibilities related to going concern.
• Separate dedicated section in the audit report is required, when there is material uncertainty related to going concern.

Other Information (OI)

• The audit report includes a separate section under the heading “Other Information”, when an entity prepares other information (e.g., annual report or MD&A) containing or accompanying the entity’s financial statements and auditor’s report thereon
• This section provides details of management and the auditor’s responsibilities for the other information and the auditor’s conclusion from reading and considering the other information.  .
  
• For all entities, the report must discuss the auditor’s review of other information, which is available at the time of the audit report.  When some or all of the other information is not yet available at the time of the audit report, the following would apply:

1. For listed entities, the auditor is required to identify other information that the auditor expects to obtain after the date of the audit report.
2. For non-listed entities, the auditor is not required to identify other information expected to be obtained after the date of the audit report.  The auditor still has responsibilities to perform necessary procedures on the other information obtained after the date of the auditor’s report.

“Other Information” is defined as financial or non-financial information (other than financial statements and the auditor’s report) included in an entity’s annual report. An entity’s annual report may be a single document or a combination of documents that serve the same purpose.

• Roles and Responsibilities 

• A description of management’s and auditor’s responsibilities relating to going concern is required.
• The new auditor’s report discloses identification of those charged with governance (TCWG) within the management’s responsibilities section.
• There is an expanded description of auditor’s responsibilities, including key features of an audit.

For audits of listed entities

The following are enhancements applicable for listed entities, beyond those enhancements noted for all entities

Roles and Responsibilities

A new description of the auditor’s responsibilities to provide a statement to TCWG that the auditor has complied with relevant ethical requirements regarding independence.

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