Ian Seymour Elected President - The Institute of Chartered ...

Updated Independence
Guide
The independence standard, which is codified in
Rule of Professional Conduct 204, took effect
in 2004. It has essentially remained unchanged
since then, other than a revision in 2005 that
took effect in 2006 to address mutual funds.
The standard is lengthy, and the application
in a number of circumstances is not well
understood. For instance, one area of confusion
is regarding the application of the independence
standard to the ability to provide assurance
services or compilation services when the
practitioner is also assisting with the preparation
of accounting records and/or journal entries, as
well as the related disclosure requirements.
At the June AGM the membership approved
an additional Council Interpretation to
Rule 204.8 - Independence - Disclosure of
Impairment of Independence.
New paragraph 4 states, “For the purposes
of Rule 204.8 the preparation of accounting
records or journal entries in connection with
a compilation engagement is not an activity
that requires disclosure in the Notice to Reader
unless such preparation involves complex
transactions as contemplated by paragraph 143
of the Council Interpretations to Rules 204.1
to 204.6”.
The Guide to Canadian Independence,
FOLIO 2
prepared in 2003 to provide guidance when the
Rule was released, has recently been updated
to cover additional areas that are subject
to frequent calls to practice advisors of the
provincial institutes. These include:
• The disclosure requirements for
compilation engagements;
• Communication requirements - both
requirements by members and students
to communicate within the firm any
interests, relationships, or provision of
services precluded by Rule 204; as well as
requirements by firms to communicate
matters relating to independence to clients;
and
• The impact of the adoption of
International Standards on Auditing (ISA)
as Canadian Auditing Standards (CAS).
This Guide has been produced by the CICA
in a PDF format, which will allow users to
search by key words.
A project is also underway to create an online
version of the Guide that links references to
the Rule of Professional Conduct 204 and the
related Council Interpretation to the Member’s
Handbook for each PICA.
An update will be sent to members by email
when this is available.
Financing Toolkit for Small &
Medium Businesses
The CICA is pleased to announce publication of The Financing Toolkit for Small & Medium
Businesses, written by Gary A. Fitchett, CA in sponsorship with the Business Development
Bank of Canada.
The Financing Toolkit for Small & Medium Businesses
is one of the most comprehensive, easy-to-use guides
available on this subject. Written and vetted by
experts in the field, it provides a structured step-bystep
process for business owners to understand the
various financial options and choices available to meet
their specific needs.
It then guides them, in plain and straightforward
language, through the entire process, from drawing
up a business plan, to the do’s and don’ts of the
presentation, and responding to rejection should it
come.
The Toolkit is available to order at knotia.ca/store/
financing or by calling (toll free) 1-800-268-3793.
Auditor
Selection
To: The Members
Each year the Audit Committee of The
Institute of Chartered Accountants of
Manitoba reviews the selection process
for the Institute’s auditors and makes
a recommendation to Council for the
coming year.
This is in turn ratified by the
membership at the AGM. In addition,
the Audit Committee sets the fee for the
coming year.
Members of the Manitoba Chartered
Accountants Foundation Inc. also
approve the use of the Institute’s
auditors as the Foundation’s auditors at
their AGM.
Booke and Partners has now been
approved as the Institute’s and
Foundation’s auditors for 2009-2010.
In considering the appointment of
auditors, the committee evaluates the
performance of the current auditors and
has found that they continue to meet
expectations.
The committee has discussed the
advantages and disadvantages of
changing auditors and feels that
other than “optics”, there has been no
compelling reason to change.
The Committee has agreed however
that if expressions of interest were to
be received from other firms, it would
consider a tendering process, with a fee
to be pre-set by the Audit Committee.
Rick M. MacKay, FCA
Chair
2008-2009 Audit Committee