What Do the New Audit Risk Standards Mean for Your Business?

For every company, public or private, that issues audited financial statements, the new Canadian audit risk standards may mean a longer, more complex, audit process, and correspondingly higher audit fees. These new standards are effective for periods beginning on or after January 1, 2006. This article discusses the background to the new standards, outlines the changes that they introduce, and offers advice on steps you can take to save the auditor some time, and you some money.

For the full version of this article, click here.

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Ernst & Young Releases its 9th Global Fraud Survey

As part of its long-standing tradition of contributing to a better understanding of fraud, Ernst & Young has released the report of its 9th Global Fraud survey. More than 500 business leaders from some of the world’s largest corporations responded to the survey, including many companies operating in emerging markets.

Here are a few of the report’s conclusions:

• Strong internal controls remain the first line of defense against fraud
• Many companies do not have a formal anti-fraud policy, and even those who do could benefit by extending the policy to all operations, and building better training and communication programs around it
• Respondents from developed countries are more likely to have suffered significant losses from fraud at home, but feel that fraud is a bigger risk in their operations in emerging markets
• Companies in emerging markets may be underestimating the risk of financial statement fraud

For a copy of the 9th Global Fraud Survey, click here.

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How do you ensure a trouble-free business trip to the United States? A good place to start is a recent article on www.exportsource.ca: “Going There: Business Travel to the United States,” by Dennis and Sandi Jones.

This brief article discusses the four classifications of business persons covered by NAFTA’s temporary-entry provisions, taking gifts and samples through U.S. Customs, and a timely warning against characterizing a business trip as a vacation. In addition, it contains several useful links to more detailed information. For a link to this valuable article, click here.

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Have you ever wondered how the some of the largest, most successful companies deal with financial, operational, strategic and physical risks? How do they meet the demands imposed by corporate governance regulations, financial reporting requirements, operational efficiencies, and customer expectations?

Here’s your chance to see how the best, most forward-looking internal audit departments are not only meeting these challenges, but are moving beyond them—becoming trusted business advisors and business consultants for their organizations. In the process, they are setting new best practices for their profession, and raising the bar for internal auditors everywhere.

How do they do it? The Protiviti document Internal Auditing Around the World, Vol. II on www.KnowledgeLeader.com gives you a glimpse inside the internal audit departments of these organizations, and provides plenty of ideas and strategies you can use.

For a link to Internal Auditing Around the World, Vol. II, click here.

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As of April 3rd, 2006 the Canada Revenue Agency has made it simple for input tax credit (ITC) claimants to check if a supplier is properly registered for GST and if the supplier's GST registration number is valid.

The Canada Revenue Agency website now includes an free online GST Registry, in which you input:

• The GST/HST Registration number (also referred to as a Business Number or registration number) that must be displayed on receipts, invoices, and contracts totalling $30 or more. Only the first 9 numbers need to be entered. Do not include letters.
• The supplier's business name (the legal, operating, or trading name displayed on an invoice or posted on a sign at the place of business)
• The transaction date, the invoice date or the date on which GST/HST was paid or payable

All three fields must be input. When you receive a response, you should print the results to document that your ITC claim includes only GST/HST charged by suppliers who are properly registered.

Is the GST Registry convenient? Certainly. However, this tool could put a greater onus on an ITC claimant, simply because the Courts may consider that there’s no reasonable excuse for failing to verify that they’re doing business with a bona fide registrant.

Accordingly, you should carefully consider modifying your accounts receivable policies to make use of the GST Registry mandatory.

Click here to link to the GST Registry input page.

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The buzz about Operations and Marketing PolicyPro (OMPP) is building, as businesses extend their risk management strategy and internal controls to operational areas such as Marketing, Sales, Production, and Engineering. OMPP is co-published by First Reference and the CICA, and is a companion product to Finance and Accounting PolicyPro (FAPP).

Click here to take a look at two sample policies from OMPP. You’ll discover that you get more than just model policies—you also get expert advice about why you need the policy and how to adapt it to your organization.

Once you’ve reviewed the policies, take the opportunity to review OMPP for 30 days risk free. We’re confident that it will become a valuable and essential part of your risk management strategy.

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About the PolicyPro Bulletin

Editor: Colin Braithwaite, Managing Editor – PolicyPro.

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PolicyPro Bulletin ISSN: 1718-5866 Copyright ©2006, First Reference Inc., All Rights Reserved.