R e v i e w c h e c k p o i n t s 17 cas 720 18 cica

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R E V I E W C H E C K P O I N T S 17 CAS 720. 18 CICA Handbook , paragraph 7200.05.
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CHAPTER 16 Other Public Accounting Services and Reports 649 The guidance is primarily geared to directors and management, but auditors find it helpful in reviewing for consistency with the financial statements. No recommendations or stan- dards have been issued yet, but a guidance document has been prepared, as shown in the box following. EXHIBIT 16–17 AUDITOR’S CONSENT I have read the [short form] prospectus of X Limited (Company) dated March 15, 20X5, relating to the issue and sale of [description of securities offered] of Company. I have complied with Canadian generally accepted standards for an auditor’s involvement with offering documents. I consent to the [use/incorporation by reference] in the above-mentioned prospectus of my report to the [directors/shareholders] of Company on the balance sheets of Company as at December 31, 20X4 and 20X3, and the statements of earnings, retained earnings, and cash flows for each of the years in the [three-/two-year] period ended December 31, 20X4. My report is dated February 15, 20X5 (except as to note . . . which is as of March 15, 20X5). City (signed) ..................... Date CHARTERED ACCOUNTANT Source: © CICA Handbook , section 7110.69. CICA’S MD&A G UIDANCE This Guidance breaks new ground by establishing six disclosure principles and a fi ve-part framework for organizing and presenting Management’s Discussion and Analysis (MD&A) disclosures, thus adding new dimensions to conventional MD&A reporting. Further, it refl ects trends in the continuous disclosure require- ments of Canadian securities jurisdictions and provides for updating of previous disclosures. A significant feature of the Guidance is a series of questions audit committees and boards of directors might ask in reviewing the completeness and reliability of the MD&A—an important aspect of fulfilling their oversight and governance respon- sibilities. These questions should also assist management in determining the appro- priateness of their MD&A disclosures and help officers of U.S. registered companies in making certifications specified under recent requirements. Source: “CICA’s MD&A Guidance,” CA Magazine , January/February 2003, p. 30. Reproduced by permission from CA Magazine , published by the Canadian Institute of Chartered Accountants, Toronto, Canada. The principles stress that MD&A is management’s perspective and explanation for past performance results and future prospects. The MD&A should complement, as well as supplement, the financial statements and be clearly worded. Future guidance for auditors will likely focus on what constitutes material inconsistency between MD&A and the finan- cial statements and how to detect such inconsistencies. 11 How are prospective financial statements defined?
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  • Fall '12
  • Smith
  • Accounting, Accountant, Auditor's report, CICA Handbook

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