An auditor must conduct an audit engagement in accordance with Canadian Auditing Standards (CAS), regardless of the complexity, size or nature of the client. However, it can be challenging to understand how to apply certain CASs to a simple entity in an efficient and effective manner. Through the use of case studies, practical examples and interactive discussions, this course will provide auditors a better grasp of CAS requirements along with how to apply the standards in a practical way in the audit of a simple, or less complex, client.

The audit of a simple entity can be a challenge for auditors as they strive to balance meeting the requirements of the Canadian Auditing Standards (CAS) while still conducting an efficient audit. This is a valuable course as it helps auditors better comprehend the standards and how to apply them in the context of a simple entity which in turn helps them conduct better quality engagements.

This course will help auditors to better understand and apply the CAS requirements. The course will review the key concepts of all CASs and their application taking into consideration unique aspects specifically related to the characteristics of a simple entity. This course includes the requirements within Revised CAS 315 with a focus on a scalability on the simple IT environment often found in less complex entities. Using case studies and practical examples along with the opportunity to ask questions and participate in interactive discussions, this session will review various alternatives in meeting CAS requirements resulting in more effective and efficient engagements.

Topics Include:

• Introduction CAS overview, definition of simple entity, Discussion Paper on LCEs.
• Initial activities client acceptance and continuance, engagement letter.
• Risk assessment procedures materiality, understanding the entity, team planning meeting, additional required risk assessment procedures including auditing estimates.
• Risk assessment procedures understanding the system of of internal control, including the IT environment and information system an communication.
• Risk assessment procedures assessing the risk of material misstatement.
• Responding to risk substantive audit procedures (including analytical review procedures and tests of detail), control testing opportunities, journal entry testing, sampling.
• Concluding and reporting communications with TCWG, assessing misstatements, audit report.

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants will be able to:

• Interpret CASs in the context of a simple entity.
• Identify challenges in applying the CASs in the audit of a simple entity and design appropriate audit responses to ensure conduct quality audits.
• Identify and assess risks of material misstatement based on understanding the entity including its system of internal control.
• Design and perform appropriate audit procedures to address the risk of material misstatement.
• Recognize opportunities for efficiencies.
• Select appropriate tools and templates to meet documentation standards.
• Apply case study facts to the audit of other client engagements.