CPA Alberta recently changed one of the Board Directives related to tax management standards, removing Directive 5.2.2.2.4. Directive 5.2.2.2 sets out the Tax Management Standards which professional accounting firms and professional service providers performing tax engagements are measured against during the CPA Alberta practice review process. The specific directive removed stated:
In February 2020, the Auditing and Assurance Standards Board (AASB) issued CSRS 4200, Compilation Engagements. CSRS 4200 replaces section 9200 in the CPA Canada Handbook – Assurance and is effective for compiled financial information for periods ending on or after December 14, 2021 (earlier adoption is permitted). The amendment to the Directives was necessary to ensure the Directives are consistent with this CSRS 4200 standard in the CPA Canada Handbook – Assurance. CSRS 4200 deems that the only appropriate form of communication in these cases is a compilation engagement report. The reasoning behind CSRS 4200 indicating that the only appropriate communication is a compilation engagement report is:
- a compilation engagement report appropriately communicates the responsibilities of management and the practitioner, among other things, which a disclaimer does not; and,
- different forms of communication, such as disclaimers, may be confusing and misleading to readers.
Using a disclaimer statement on T1 or T2 financial information for periods ending on or after December 14, 2021 is no longer acceptable. If a professional accounting firm chooses to early adopt CSRS 4200, then using a disclaimer statement on T1 or T2 financial information is no longer acceptable from the date of early adoption.
More information on the new CSRS 4200 standard can be found here.
