Subsection 2: Certification of accounts

The professional practice standard relating to the statutory auditor's reports on the annual and consolidated financial statements, approved by the Minister of Justice, is set out below:

NEP-730 Accounting changes

Introduction

01. The comparability of the accounts is ensured by the consistency of the presentation of the accounts and the valuation and accounting methods, which may only be changed in accordance with the applicable accounting standards.

02. By convention in this standard, the following are qualified as "accounting changes":

-changes in accounting policy resulting from:

-a change in accounting regulations,

or a change in accounting method initiated by the entity;

- error corrections corrections of errors;

-changes in estimates. -changes in estimates.

03. The purpose of this standard is to define the audit procedures that the statutory auditor performs when identifying an accounting change and the consequences that he draws from it in his report on the financial statements.

Audit procedures to be implemented by the statutory auditor when identifying an accounting change

04. When the statutory auditor identifies an accounting change, he assesses its justification.

05. Where the impact of the accounting change on the accounts is material, the statutory auditor verifies:

-that the accounting translation of this change, including the information provided in the notes, is appropriate;

-that appropriate information is presented to restore the comparability of the accounts, where the applicable financial reporting framework so provides.

Impact on the report

06. When the statutory auditor considers that the accounting change is not justified, or that its accounting translation or the information provided in the notes are not appropriate, he shall draw the consequences for the expression of his opinion.

07. When the accounting change corresponds to a change of method in the accounts and the statutory auditor considers that its accounting translation, including the information provided in the notes, is appropriate, he shall make an observation in his report on the accounts to draw the attention of the user of the accounts to the information provided in the notes.