Professional Auditing 1: Comprehensive Audit and Assurance Report

This report delves into the realm of audit and assurance, examining its core definition and significance in the accounting field, drawing from resources like the International Federation of Accountants (IFAC) and the textbook "Auditing: A Practical Approach." The report explores the future of audit and assurance, referencing insights from CPA Canada and the Institute of Chartered Accountants of Scotland, highlighting the importance of innovation, collaboration, education, and adaptability in the face of technological advancements and evolving business environments. Furthermore, it analyzes the Canadian Standard on Assurance (CSOA) 5000, emphasizing its role in establishing professional responsibilities concerning communication and the use of a practitioner's name. The report underscores the importance of ensuring stakeholder confidence through prudent and transparent financial reporting, offering a comprehensive overview of the subject matter.

Professional Auditing
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Table of Contents
Introduction.................................................................................................................................................3
Discussion....................................................................................................................................................3
Definition of Audit and Assurance...........................................................................................................3
Audit and Assurance in the Future- CPA of Canada and Institute of CA, Scotland...................................4
Audit and Assurance Alert: CSOA 5000, Use of the Practitioner’s Communication or Name..................5
Conclusion...................................................................................................................................................6
References:..................................................................................................................................................7
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Introduction
This article demands the role of accountants in the field of auditing and assurance as explored in
the website of International Federation of Accountants. For this purpose, the textbook consulted
is 3rd edition (2017) of Auditing: A Practical Approach by Robyn Moreney, Fiona Campbell and
Jane Hamilton. The discussion is related to the specific module of Audit and Assurance on the
basis of the text book and different papers published in the journal of IFAC on the subject of
Auditing and Assurance. (IFAC, 2018)
Discussion
Definition of Audit and Assurance
Audit is a broad spectrum term to examine different reports, while audit is generally meant for
financial reports of any entity. Audit itself ensures the correctness of the financial statements
considering proper financial instruments. The referred book- Auditing: A Practical Approach had
emphasized on the assurance engagement of the practitioner related to audit of financial report.
Assurance is to be ensured in different levels of subjects by the audit practitioner to confirm
prudence of the financial reporting of any entity. This assurance is mainly expected by different
level of stakeholders related to that entity including internal and external stakeholders. Normally
assurance is ensured through a conclusion by the practitioner, what is drawn by the process of
measurement of subject against different level of standards set as criteria. This process of
assurance engagement is mainly meant to ensure enhancement of the level of confidence to the
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stakeholders about the prudence and transparency of the reporting as per set standards. (Moroney
et al., 2017)
Audit and Assurance in the Future- CPA of Canada and Institute of CA, Scotland
Refer to audit and assurance in the future; the above authorities had organized a symposium in
Toronto in 2017. This symposium had emphasized on the issue of audit and assurance with the
guidance of senior professionals, academia and other related persons to combat the challenges
faced. The outcome had highlighted following aspects to be prioritized to enhance betterment of
service in the field of auditing and assurance for the business identities with the common
objective of meeting the needs of stakeholders including the clients and investors:
 Innovate the scope of application of Artificial Intelligence ( AI), advanced technology
and dynamic environment related business;
 Collaborate all allied bodies like professional identities, firms, regulators and setters of
standards in the allied fields of different applications like sharing of resources, expertise,
money and time;
 Educate the aspirant professionals with clear visualization of objective and execution
with proper training and practical guidance towards application;
 Adapt new skills to enhance the knowledge-base of the professionals beyond the routine
knowledge of auditing to meet the changed requirement of Audit and assurance;
 Experiment with initiatives to make benchmark on the evaluation of different financial
instruments in perspective of base concept: like the evaluation process of natural, human
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and social capital in the perspective of financial capital to fix a framework on those
virtual instruments. (cpaCanada, 2018)
Audit and Assurance Alert: CSOA 5000, Use of the Practitioner’s Communication or
Name
This alert is being enacted by the new Canadian Standard on Association in January 2017 and effective
since June 2017. This alert will highlight the responsibilities of the professional regarding communication
or name of the practitioner or name and this alert would replace the erstwhile alert under section 5020.
Features of this alert are:
 Making provision of practical considerations for the practicing professionals enabling them to
find out the applicability of this standard;
 Highlighting the difference between erstwhile section 5020 and current standard under section
5000;
 Emphasizing the difference in the domain of responsibilities of the practitioners and respective
needs of communication under CSOA 5000, along with the extension of consent of them to use
their name or communication in relation to translated or accompanying information.
The objectives of CSOA 5000 are:
 To get the right basis for providing consent by the practitioner when they are willing to consent;
 Enabling the practitioner to respond properly regarding extension of consent including the
communication responsibilities;
 To respond to the proper stakeholder if the practitioner detect improper use of his name or
communication. (CPACanada, 2017)
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Conclusion
With the above discussion, the definition of audit and assurance is described. There are two literatures
consulted for elaboration of this subject with the latest trend of audit and assurance from the reference
list of IFPA website. These two literatures had emphasized on the future trend of audit and assurance
service and the standard of alert set by CSOA for ensuring practitioner’s communication or name. This
brief reporting will enlighten the importance and present trend of audit and assurance to ensure
prudence for the stakeholders in strict way.
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References:
CPACanada, 2017. Audit and assurance alert: Canadian standard on association. [Online] Available at:
https://www.cpacanada.ca/en/business-and-accounting-resources/audit-and-assurance/standards-
other-than-cas/publications/audit-and-assurance-alert-csoa-5000?
utm_source=stakeholder_newsletter&utm_medium=article&utm_content=audit_assurance [Accessed
24 January 2019].
cpaCanada, 2018. Audit and assurance in the future. [Online] Available at:
https://www.cpacanada.ca/en/business-and-accounting-resources/audit-and-assurance/standards-
other-than-cas/publications/audit-and-assurance-in-the-future?
utm_medium=email&utm_source=stakeholder_outreach&utm_campaign=futureofaudit [Accessed 24
January 2019].
IFAC, 2018. IFAC Knowledge Gateway: Auditing and Assurance. [Online] Available at:
https://www.ifac.org/search?keys=auditing+and+assurance [Accessed 24 January 2019].
Moroney, R., Campbell, F. & Hamilton, J., 2017. Auditing: A Practical Approach. 3rd ed. Milton,
Queensland, Australia: John wiley and Sons Ltd. Chapter 1.1.
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