The most common reporting framework in canada is the

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The most common reporting framework in Canada is the fair presentation framework, since Canadian GAAP is supposed to allow fairness of presentation for general purpose reporting. The importance of the fair presentation framework is that auditors can use the words “present fairly” only for fair reporting frameworks. This is summarized in the next box. What exactly is a fairness framework? CAS 200 and CAS 700 together state that the following requirements need to be met for a fairness framework: (i) The framework acknowledges explicitly or implicitly that, to achieve fair presenta- tion of the financial statements, it may be necessary for management to provide disclosures beyond the specific requirements of the framework; or (ii) The framework acknowledges explicitly that, in extremely rare circumstances, it may be necessary for management to depart from a specific requirement of the framework to achieve fair presentation of the financial statements. (iii) CAS 700 (para. 10) specifies that a fair presentation framework (as opposed to a “compliance” framework) “embodies sufficiently broad principles that can serve as a basis for developing and applying accounting policies that are consistent with the underlying requirements of the framework” (emphasis added). K EY CHANGES IN A UDITOR S OPINION WORDING FAIR PRESENTATION COMPLIANCE FRAMEWORKS FRAMEWORKS Wording of auditor’s Wording of auditor’s standard opinion–general standard opinion–general purpose financial statements purpose financial statements “the financial statements “the financial statements have present fairly, in all material been prepared, in all material respects, the . . . in accordance respects, in accordance with with Cdn GAAP” (CAS 700) (applicable acceptable general purpose framework) . . . (CAS 700) Source: CAAA 2008 Audit Education Update.
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CHAPTER 16 Other Public Accounting Services and Reports 655 24 CICA Handbook , paragraph 9100. 25 CICA Handbook , paragraph 9200. 26 CICA Handbook, section 5025, and AuG-13. 27 CICA Handbook , section 7600. These distinctions show how complex suitable criteria can become in an international set- ting. The application case at the end of the chapter explains these distinctions in more detail. The introduction to section 5025 makes it clear that existing CICA Handbook recommendations override the current standard. Nevertheless, the long-term objective is to provide guidelines where there are now no standards, and, in the future, to provide guidance on more specific recommendations in assurance engagements. The long-term objective is described in the scope of paragraph 5025.01 as follows: These standards establish a framework for all assurance engagements performed by practitioners and for the on-going development of related standards. The standards apply to (a) engagements in the private and public sectors; (b) attest engagements and direct reporting engagements; (c) engagements designed to provide a high (i.e., audit) level of assurance; and (d) engagements designed to provide a moderate (i.e., review) level of assurance.
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  • Fall '12
  • Smith
  • Accounting, Accountant, Auditor's report, CICA Handbook

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