C•PEM News

Quick Facts:

Last PEM update	42	PEM #42 Highlights letter
Target for next PEM update	June 2010	Introduction to C•PEM
		Introduction to the new CASs

The all new C•PEM
The C•PEM comprises two volumes:

Volume 1 — Core Concepts
These chapters will help practitioners understand key concepts used in the standards and includes chapters on matters such as materiality, internal control, risk assessment procedures and the type and nature of audit and review procedures.

Volume 2 — Practical guidance
Presented in four parts:
– Part A provides a practical step-by-step approach to completing an audit engagement from client acceptance, planning and risk assessment through to risk response, evaluating audit evidence and forming an audit opinion. Each chapter contains illustrative audit documentation based on two case studies, a very small entity and a slightly larger one.
– Parts B and C provide comprehensive chapters on review and compilation engagements.
– Part D includes print-ready PDFs of the C•PEM sample forms, worksheets and sample engagement letters. Also included in these practice aids is a PDF of each of the publications entitled Model Financial Statements — Private Enterprises — Part V of the CICA Handbook – Accounting and Model Financial Statements — Private Enterprises — Part II of the CICA Handbook – Accounting. Developed by the Professional Expertise Committee of the Ordre des comptables agréés du Québec, these valuable resources provide practical guidance for the preparation of financial statements.

The forms, worksheets and sample engagement letters are also available in Word and Excel templates for tailoring these practice aids to address the circumstances of each engagement. For more information about the C•PEM CICA Electronic Templates, go to www.CAstore.ca/cpem.

Audit Engagements
The audit section of this manual has been revised to reflect the extensive changes made to audit practice resulting from the introduction of Canadian Auditing Standards effective for audits of financial statements for periods ending on or after December 14, 2010.

The Professional engagement manual (PEM) is designed to assist practitioners with the implementation of professional standards with respect to audit, review and compilation engagements.

New Condensed Forms
New alternative (condensed) audit forms have been developed for smaller audits. These forms provide some basic guidance but are loosely structured so that they provide a lot of white space for users to decide exactly what needs to be documented. These forms avoid having to answer ‘not applicable’ to certain questions and shorten the overall length of the form.

NEW Not-for-profit forms
New forms have been developed to address the specific risks and audit requirements for a Not-for-Profit (NFP) entity. The same form numbers as for the regular audit have been used but with "NFP" in front of the name. Some additional new ‘condensed’ NFP forms have also been developed.

Streamlined versions of existing Audit forms
A number of the planning and risk assessment forms have been revised to provide more guidance on what is required on the form and to make the forms more user friendly.