Confirmation received

Article Abstract:

The Auditing Standards Board invited auditors to express their opinions on the exposure draft of a new section in the Handbook of the Canadian Institute of Chartered Accountants. The section discusses the fundamentals of the process governing the confirmation of accounts receivables and offers guidance to auditors on the assessment of the importance and reliability of confirmation for gathering audit evidence. Respondents generally praised the provision of guidance on how to use confirmation relating to any financial statement item but were divided on the issue of the confirmation of accounts receivable.

Accounting and auditing, Accounts receivable

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Analysing a business, slice by slice

Article Abstract:

Both the Auditing Standards Boards in Canada and the US have issued guidelines on auditing segment disclosures in financial statements. This move reflects the increased importance given to segment information by investors and financiers. Segment information reveals the actual information used by a company's chief operating decision-maker in internal budget allocations to different operating segments, as well as in evaluating these segments' performance. The auditor's job is to check that these information jibes with the ones presented in the company's financial statement.

Accounting Methods, Reporting & Disclosure, Decision-making, Decision making, Analysis, Accounting, Practice, Financial statements, Resource allocation, Line of business reporting

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In the final analysis

Article Abstract:

The Auditing Standards Board has issued the new Canadian Institute of Chartered Accountants Handbook Section 5301 which provides best practice guidelines for auditing. The new section now includes discussions on analytical procedures and financial statement component identification, clarifications of the terms precision and assurance and recommendations for using an analytical procedure as a substantive procedure.

Auditing Standards Board

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