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Updated guide: Auditors, actuaries and actuarily determined amounts

The joint policy statement (JPS) between auditors and actuaries has been updated. Read this updated guide for practical guidance on how auditors and actuaries can work together effectively to complete their respective engagements.

The new JPS was issued into the CPA Canada Handbook – Assurance in March 2023 and is located in the appendix to Canadian Auditing Standard (CAS) 500, Audit Evidence.

This second edition of Audits of Financial Statements that Contain Amounts that Have Been Determined Using Actuarial Calculations has been updated in consultation with an expert panel of actuaries and auditors. The revisions in this edition include changes to reflect terminology of the new JPS and includes new example procedures in the appendices.

Included in this guide:

  • Defining terminology used in and objectives of the JPS
  • Determining the need for an auditor’s actuary
  • Considering risk assessment procedures and sources of information about the entity and its environment, including internal control
  • Understanding the entity and its environment, including internal control
  • Identifying and assessing the risks of material misstatement
  • Responding to assessed risks of material misstatement
  • Communicating deficiencies in internal control to those charged with governance and management
  • Examples of possible audit procedures to address the assessed risks of material misstatement

For additional information about the JPS between auditors and actuaries, visit the JPS project page and read the Basis of Conclusions on the FRAS Canada website.