Whatever the scope of the project, deliverables include appropriate documentation for your file to corroborate the accounting and financial reporting conclusions reached. Such documentation ensures the working papers stand up to scrutiny by the institute or regulator (for example, the Canadian Public Accountability Board, CPAB).
Engagements are usually on a fixed fee basis, which provides certainty over the cost. In addition to the confidence that your work is in compliance, you benefit from cost effective service – which leaves you more time to grow your practice.
Furthermore, Rhodes Professional Corporation is engaged for services directly by your firm, meaning a seamless service to your client and leaving the client relationship entirely with you.
1. Providing Quality Control oversight or Engagement Quality Control Reviewer (EQCR) services
Assistance can be provided through:
- input to the audit process from the planning stage through completion;
- consultation on specific audit issues arising; and/or
- review of the draft financial statements prior to release to the client to ensure compliance with the appropriate financial reporting framework and best practices.
2. Financial statement preparation/assistance
Under both International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE), for example, where any of the following apply:
- the financials have a broad readership (such as outside investors or they are to be used in a public document as part of a transaction) which demands a higher financial reporting bar;
- a desire for a higher level of quality control due to accounting for complex transactions or events;
- separating the preparation of the financial statements from the audit is required to protect your independence and objectivity; or
- there is a need or desire to ensure best practices are adopted.
Financial statement preparation includes documenting the financial reporting and accounting positions taken in determining: accounting policies, recognition and presentation issues, as necessary.
3. Consulting, on an ad hoc basis
- Assistance with regulatory requirements when: your private client is the subject of an acquisition by a public company and your audit opinion is to be included in a public document; and you are being asked to provide the underwriters with comfort.
- Adoption of new accounting standards:
– Revenue from Contracts with Customers (IFRS 15);
– Leases (IFRS 16);
– Financial instruments (IFRS 9); or
– Amendments to Presentation of Financial Statements (IAS 1).
- Responding to enquiry letters following the regulator’s review of your client’s continuous disclosures.
- Conversions to IFRS from private Canadian GAAP (ASPE) or the accounting framework in the company’s jurisdiction.
- Consultation in applying a financial reporting standard, such as judgements and estimates and accounting for complex transactions or events.
Where complications arise on assurance engagements and there is a need for a second opinion on a limited scope question or issue. For example, the ability of the client to continue as a going concern is in doubt or the client has adopted a new accounting standard in the year.
4. Provision of annual updates and peer reviews
In addition to training courses (see knowledge transfer), updates can be provided, for example, to the firm’s IFRS and ASPE financial statement templates and audit programs to ensure they are current.