Feedback Sought on Proposed New Audit Inquiry JPS
The Canadian Bar Association has undertaken an update of the Joint Policy Statement on Audit Inquiries (“JPS”), in collaboration with the Auditing and Assurance Standards Board. An auditor of an entity’s financial statements will often request that its lawyers confirm the reasonableness of the entity’s evaluation of claims and possible claims both by and against the entity. The JPS was developed in 1978 by the CBA and (then) CICA to provide guidance on communication protocols between the auditor, law firm and management of the entity, in order to protect solicitor-client privilege and keep an appropriate distance between the auditor and . . . [more]
