Management accounting entails the process of preparing financial data and advice on management reports that provide timely financial and statistical details to aid in deciding accounting matters within an organization. This paper reviews a CPA Magazine article by Jacqui Kuypers dated September 1, 2014. The author seeks to determine the extent to which reports on supplementary matters on audit will change with the introduction of the Canadian Standard on Related Services (CSRS) 4460. The author gives the opinion that reports on supplementary matters will be altered significantly and in many cases. CSRS 4460 involves third party reviews to provide supplementing information that is not directly part of the audit and such provisions involve additional details, generalizations on personal interests, or recommendations. The author explores how much the aforementioned details on supplementary matters can change. This paper agrees with the opinion of Jacqui Kuypers.
The author discusses the impacts of CSRS 4460, which links directly to the management decisions and duties that public accountants plus other officials are mandated to such as processing financial details, which other staff might not be in a position to realize. Organizations or companies often prepare financial details about certain issues concerning the entity to present to regulators, funding sources, or any other interested parties. Such details might involve whether the company possesses satisfactory books and records or changes in regulations that might have happened within a given time span (Kuypers 2014).
The author claims that it is not always a simple task for the public accountant to provide the supplementary information, since the additional information goes past the details provided in an organization’s financial standings. Consistency lacks in the process of compiling these supplementary details. The author identifies that the Auditory and Insurance Standards board came up with the CSRS in June 2014 to aid public accountants in the provision of supplementary information on financial reviews. Non-profit run organizations such as public hospitals and municipal organizations among other entities are most likely to be affected by the CSRS standards. This assertion holds as the funders and regulators seek accountability and give public accountants directions to the public accountants on specific areas where extra information is needed. Thereafter, an appropriate feedback is issued to regulators or funders upon completion.
This paper concurs with Kuypers’ opinion that reports on supplementary matters on financial reviews will change a lot with the incorporation of the CSRS standards. The author understandably forecast on how the CSRS 4460 standards will bring changes to report engagements and cover what was overlooked in the past. Perhaps the process will require more time and increased costs depending on the nature of the supplementary report required, but the reports are expected to be concise and informative. The CSRS standards will require accountants in different organizations to follow what has been laid out failure to which the involved parties will be culpable of an accounting offence. These changes, as expected to take effect on or after April 1, 2016, will improve efficiency and accountability in organizations.
A comprehensive inclusion of the CSRS 4460 standards might in the near future reflect Kuypers’ opinions. However, the author’s opinions cannot be substantiated to what will really happen after the CSRS standards are in place. Concerning the author’s insight, this paper reaffirms that the reports on supplementary matters will be altered significantly when CSRS 4460 standards are in place.
Reference
Kuypers, J. (2014). Reporting on matters beyond the financial statements: How much will reports on supplementary matters change now that CSRS 4460 is in place? Web.