PRACTICE INSPECTION COMMON FINDINGS

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3. Disclosure of related parties did not include: a. Adequate information about the nature of the relationship with related parties involved in related party transactions. b. The types of related party transactions that have been recognized. c. The amounts of the transactions recognized classified by financial statement category. d. The basis of measurement used. e. The amount of outstanding balances and the terms and conditions attached to them.

PS 2200.17

4. Disclosure with respect to long-term debt did not include: a. Interest rates. b. Existence of sinking fund and redemption provisions. c. Description of repayment dates and amounts and nature of repayments. d. Aggregate amount of payments in each of the next five years and thereafter to meet sinking fund or retirement provisions. e. Secured liabilities stated separately and the fact that they are secured. f. Nature and, where practicable, carrying value of assets pledged as security. g. Details of any defaults in principal, interest, sinking fund or retirement provisions. h. Any amounts payable on demand.

PS 3230.17, .18, .24, .25

5. Disclosure with respect to a multiemployer retirement benefit plan for which the entity is a participating employer and not the plan sponsor did not include: a. General description of benefit plans, contribution formulae and funding policy. b. Available information about any surplus or deficit, the basis used to determine the surplus or deficit and the implications, if any to the government.

PS 3250.100, .110, .111

References

CPA Ontario (n.d.). Focus on Practice Inspection 2021 www.cpaontario.ca. Retrieved May 11, 2023, from https:// assets.cpaontario.ca/members/regulations-guidance/pdfs/ focus_on_practice_inspection_2021.pdf

CPA British Columbia (n.d.). Practice Review: 2021 - 2022 Findings and Focus Areas. www.cpabc.ca. Retrieved May 11, 2023, from https://www.bccpa.ca/news-views-kb/ news-views-kb-entries/cpabc/public-practice-regulation/ guidance/practice-review-2021-2022-findings-and-focusareas/ continued on page 20