FIRST FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH OTHER FINANCIAL REPORTING FRAMEWORKS

2(a) Canadian Accounting Standards for Private Enterprises Are Adopted
for Financial Statement Periods Ending Prior to December 14, 2010 —
Auditor’s Report Refers to the Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
private enterprises is the year ended December 31, 2009
• The auditor’s report refers to the current period only.
• The audit is conducted in accordance with Canadian GAAS prior
to the effective date of the CASs.
• The corresponding figures are not marked as unaudited.
• The fact that the corresponding figures are unaudited is not
disclosed in the notes to the financial statements.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for private enterprises would
include the entity’s balance sheet as at:
(a) December 31, 2009;
(b) December 31, 2008; and
(c) January 1, 2008 (opening balance sheet prepared in
accordance with Canadian accounting standard for private
enterprises).
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2008
and December 31, 2007. However, these financial statements
are not included in the first financial statements of the entity
prepared in accordance with Canadian accounting standards for
private enterprises. Rather, the first financial statements prepared
in accordance with Canadian accounting standards for private
enterprises include the financial statements for the year ended
December 31, 2008 and the January 1, 2008 opening balance
sheet prepared in accordance with Canadian accounting standards
for private enterprises. Unless specifically engaged to do so, the
auditor will not have audited and reported on these financial
statements.
3. Section 5701, Other Reporting Matters, states that where financial
statements include unaudited comparative figures for a prior
period, they should preferably be clearly marked as unaudited in
order to make it clear that the auditor’s opinion does not extend
to them. If the comparative figures are not marked as unaudited,
disclosure should be made, either in the notes to the financial
statements or in the auditor’s report following the opinion
paragraph, that the auditor has not examined, and does not
express an opinion on, the financial statements for the preceding
period. A paragraph after the opinion paragraph has been included
in this Illustrative Report. The paragraph also makes reference to
the note to the financial statements that describes the transition
to Canadian accounting standards for private enterprises. This
form of paragraph has been developed to address the specific
circumstances discussed in Q&A 1(d) in this Guide when the
comparative information is unaudited and is not intended to
address other circumstances.
4. Because the financial statements are for the year ended
December 31, 2009 (i.e., prior to the issuance of the CASs), the
audit is conducted in accordance with Canadian GAAS in effect
prior to the issuance of the CASs. Section 5400, The Auditor’s
Standard Report, requires that in the opinion paragraph the auditor
express his or her opinion as to whether the financial statements
present fairly, in all material respects, the financial position, results
of operations and cash flows of the entity in accordance with
Canadian GAAP. (Refer to Q&A 1(b) in this Guide for guidance on
the form of opinion.)
AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the balance sheet of ABC Company as at
December 31, 2009 and the statements of income, retained earnings
and cash flows for the year then ended. These financial statements are
the responsibility of the company’s management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally
accepted auditing standards. Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation.
In our opinion, these financial statements present fairly, in all material
respects, the financial position of ABC Company as at December 31,
2009 and the results of its operations and its cash flows for the year
then ended in accordance with Canadian accounting standards for
private enterprises.
Without modifying our opinion, we draw attention to Note X to the
financial statements which describes that ABC Company adopted
Canadian accounting standards for private enterprises on January
1, 2009 with a transition date of January 1, 2008. These standards
were applied retrospectively by management to the comparative
information in these financial statements, including the balance sheets
as at December 31, 2008 and January 1, 2008, and the statements of
income, retained earnings and cash flows for the year ended December
31, 2008 and related disclosures. We were not engaged to report on the
restated comparative information, and as such, we have not audited,
and do not express an opinion on, the comparative information..
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(b) Canadian Accounting Standards for Private Enterprises Are Adopted
for Financial Statement Periods Ending Prior to December 14, 2010 —
Review Engagement Report Refers to the Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
private enterprises is the year ended December 31, 2009.
• The review engagement report refers to the current period only.
• The review is conducted in accordance with Section 8200, Public
Accountant’s Review of Financial Statements.
• The fact that the corresponding figures are neither audited nor
reviewed is not disclosed in the financial statements.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for private enterprises would
include the entity’s balance sheet as at:
(a) December 31, 2009;
(b) December 31, 2008; and
(c) January 1, 2008 (opening balance sheet prepared in
accordance with Canadian accounting standards for private
enterprises).
2. The public accountant may have performed a review of the entity’s
financial statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2008
and December 31, 2007. However, these financial statements
are not included in the first financial statements of the entity
prepared in accordance with Canadian accounting standards for
private enterprises. Rather, the first financial statements prepared
in accordance with Canadian accounting standard for private
enterprises include the financial statements for the year ended
December 31, 2008 and the January 1, 2008 opening balance sheet
prepared in accordance with Canadian accounting standards for
private enterprises. Unless specifically engaged to do so, the public
accountant will not have reviewed and reported on these financial
statements.
3. General Review Standards, paragraph 8100.41, requires that when
comparative figures were neither audited nor reviewed, and
disclosure of such matters is not made in the information on which
the public accountant reports, disclosure should be made in a
separate and final paragraph of the review engagement report.
A final paragraph has been included in this Illustrative Report.
The paragraph also makes reference to the note to the financial
statements that describes the transition to Canadian accounting
standards for private enterprises. This form of paragraph has
been developed to address the specific circumstances discussed
in Q&A 1(d) in this Guide when the comparative information is
neither audited nor reviewed and is not intended to address other
circumstances.
4. General Review Standards, paragraph 8100.15, requires that in
the negative assurance paragraph, the public accountant should
express negative assurance as to whether the financial statements
are, in all material respects, in accordance with appropriate criteria.
(Refer to the Q&A 1(b) in this Guide for guidance on the form of
report.)
REVIEW ENGAGEMENT REPORT
[Appropriate Addressee]
We have reviewed the balance sheet of ABC Company as at
December 31, 2009 and the statements of income, retained earnings
and cash flows for the year then ended. Our review was made in
accordance with Canadian generally accepted standards for review
engagements and, accordingly, consisted primarily of inquiry, analytical
procedures and discussion related to information supplied to us by the
company.
A review does not constitute an audit and, consequently, we do not
express an audit opinion on these financial statements.
Based on our review, nothing has come to our attention that causes
us to believe that these financial statements are not, in all material
respects, in accordance with Canadian accounting standards for private
enterprises.
We draw attention to Note X to the financial statements which
describes that ABC Company adopted Canadian accounting standards
for private enterprises on January 1, 2009 with a transition date
of January 1, 2008. These standards were applied retrospectively
by management to the comparative information in these financial
statements, including the balance sheets as at December 31, 2008
and January 1, 2008, and the statements of income, retained
earnings and cash flows for the year ended December 31, 2008 and
related disclosures. We were not engaged to report on the restated
comparative information, and as such, it is neither audited nor
reviewed.
[Public accountant’s signature]
[Date of the review engagement report]
[Public accountant’s address]

2(c) Canadian Accounting Standards for Private Enterprises Are Adopted
on the Effective Date — Auditor’s Report Refers to Each Period for
which Financial Statements Are Presented

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
private enterprises is the year ended December 31, 2011.
• The auditor’s report refers to each period for which financial
statements are presented.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1 The entity’s first financial statements prepared in accordance with
Canadian accounting standards for private enterprises would
include the entity’s balance sheets as at:
(a) December 31, 2011;
(b) December 31, 2010; and
(c) January 1, 2010 (opening Canadian accounting standard for
private enterprise balance sheet).
2 The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2010
and December 31, 2009. However, these financial statements
are not included in the first financial statements of the entity
prepared in accordance with Canadian accounting standards for
private enterprises. Rather, the first financial statements prepared
in accordance with Canadian accounting standards for private
enterprises include the financial statements for the year ended
December 31, 2010 and the January 1, 2010 opening balance sheet
prepared in accordance with Canadian accounting standards
for private enterprises. Unless specifically engaged to do so, the
auditor will not have audited and reported on these financial
statements. Accordingly, in order for the auditor’s report to refer
to each period for which financial statements are presented, the
auditor would need to audit the financial statements for the year
ended December 31, 2010 and the January 1, 2010 opening balance
sheet prepared in accordance with Canadian accounting standards
for private enterprises.
3 Under paragraph 6(c) of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, the
comparative information is “comparative financial statements”.
Comparative financial statements are included for comparison
with the financial statements of the current period. The level of
information included in those comparative financial statements
is comparable with that of the financial statements of the current
period. This Illustrative Report is based on Illustration 4 in CAS 710.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Company, which comprise the balance sheets as at December 31, 2011,
December 31, 2010 and January 1, 2010, and the statements of income,
retained earnings and cash flows for the years ended December 31,
2011 and December 31, 2010, and a summary of significant accounting
policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for private enterprises, and for such internal control as
management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Company as at December 31,
2011, December 31, 2010 and January 1, 2010, and the results of its
operations and its cash flows for the years ended December 31, 2011
and December 31, 2010 in accordance with Canadian accounting
standards for private enterprises.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(d) Canadian Accounting Standards for Private Enterprises Are
Adopted on the Effective Date — Auditor’s Report Refers
to the Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
private enterprises is the year ended December 31, 2011.
• The auditor’s report refers to the current period only.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for private enterprises would
include the entity’s balance sheet as at:
(a) December 31, 2011;
(b) December 31, 2010; and
(c) January 1, 2010 (opening Canadian accounting standard for
private enterprise balance sheet).
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2010
and December 31, 2009. However, these financial statements
are not included in the first financial statements of the entity
prepared in accordance with Canadian accounting standards
for private enterprises. Rather, the first financial statements
prepared in accordance with Canadian accounting standards
for private enterprises include the financial statements for the
year ended December 31, 2010 and the January 1, 2010 opening
balance sheet prepared in accordance with Canadian accounting
standards for private enterprises. Unless specifically engaged
to do so, the auditor will not have audited and reported on
these financial statements. The auditor will have performed
procedures with respect to the comparative information as
required by paragraphs 7-9 of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, but
these procedures are not necessarily themselves sufficient for the
auditor to opine on the comparative information.
3. Under paragraph 6(b) of CAS 710, these figures are “corresponding
figures”. Corresponding figures are amounts and disclosures
for the prior period included as an integral part of the current
period financial statements, and are intended to be read only
in relation to the amounts and other disclosures relating to the
current period (referred to as “current period figures”). The level
of detail presented in the corresponding amounts and disclosures
is dictated primarily by its relevance to the current period figures.
This Illustrative Report is based on Illustration 3 in CAS 710.
4. The auditor’s report indicates that the comparative information
is unaudited in a paragraph after the opinion paragraph in
accordance with paragraph 14 of CAS 710 in order to clearly
indicate to readers that the December 31, 2010 financial statements
and the January 1, 2010 opening balance sheet prepared in
accordance with Canadian accounting standards for private
enterprises have not been audited. The paragraph also makes
reference to the note to the financial statements that describes the
transition to Canadian accounting standards for private enterprises.
This form of paragraph has been developed to address the
specific circumstances discussed in Q&A 1(d) in this Guide when
the comparative information is unaudited and is not intended to
address other circumstances.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Company, which comprise the balance sheet as at December 31, 2011,
and the statements of income, retained earnings and cash flows for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for private enterprises, and for such internal control as
management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Company as at December 31,
2011, and the results of its operations and its cash flows for the year
then ended in accordance with Canadian accounting standards for
private enterprises.
Comparative Information
Without modifying our opinion, we draw attention to Note X to the
financial statements which describes that ABC Company adopted
Canadian accounting standards for private enterprises on January 1,
2011 with a transition date of January 1, 2010. These standards were
applied retrospectively by management to the comparative information
in these financial statements, including the balance sheets as at
December 31, 2010 and January 1, 2010, and the statements of income,
retained earnings and cash flows for the year ended December 31, 2010
and related disclosures. We were not engaged to report on the restated
comparative information, and as such, it is unaudited.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(e) Canadian Accounting Standards for Private Enterprises Are Adopted
on th Effective Date — Review Engagement Report Refers to the
Current Period Only

• The financial statement period for the first financial statements
under accounting standards for private enterprises is the year
ended December 31, 2011.
• The review engagement report refers to the current period only.
• The review is conducted in accordance with Section 8200, Public
Accountant’s Review of Financial Statements.
• The fact that the corresponding figures are neither audited nor
reviewed is not disclosed in the financial statements.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for private enterprises would
include the entity’s balance sheet as at:
(a) December 31, 2011;
(b) December 31, 2010; and
(c) January 1, 2010 (opening Canadian accounting standard for
private enterprise balance sheet).
2. The public accountant may have performed a review of the entity’s
financial statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2009
and December 31, 2010. However, these financial statements
are not included in the first financial statements of the entity
prepared in accordance with Canadian accounting standards for
private enterprises. Rather, the first financial statements prepared
in accordance with Canadian accounting standard for private
enterprises include the financial statements for the year ended
December 31, 2010 and the January 1, 2010 opening balance sheet
prepared in accordance with Canadian accounting standards for
private enterprises. Unless specifically engaged to do so, the public
accountant will not have reviewed and reported on these financial
statements.
3. General Review Standards, paragraph 8100.41, requires that when
comparative figures were neither audited nor reviewed, and
disclosure of such matters is not made in the information on which
the public accountant reports, disclosure should be made in a
separate and final paragraph of the review engagement report.
A final paragraph has been included in this Illustrative Report.
The paragraph also makes reference to the note to the financial
statements that describes the transition to Canadian accounting
standards for private enterprises. This form of paragraph has
been developed to address the specific circumstances discussed
in Q&A 1(d) in this Guide when the comparative information is
neither audited nor reviewed and is not intended to address other
circumstances.
4. General Review Standards, paragraph 8100.15, requires that in
the negative assurance paragraph, the public accountant should
express negative assurance as to whether the financial statements
are, in all material respects, in accordance with appropriate criteria.
(Refer to the Q&A 1(b) in this Guide for guidance on the form of
report.)
REVIEW ENGAGEMENT REPORT
[Appropriate Addressee]
We have reviewed the balance sheet of ABC Company as at
December 31, 2011 and the statements of income, retained earnings and
cash flows for the year then ended. Our review was made in accordance
with Canadian generally accepted standards for review engagements
and, accordingly, consisted primarily of inquiry, analytical procedures
and discussion related to information supplied to us by the company.
A review does not constitute an audit and, consequently, we do not
express an audit opinion on these financial statements.
Based on our review, nothing has come to our attention that causes
us to believe that these financial statements are not, in all material
respects, in accordance with Canadian accounting standards for private
enterprises.
We draw attention to Note X to the financial statements which
describes that ABC Company adopted Canadian accounting standards
for private enterprises on January 1, 2011 with a transition date of
January 1, 2010. These standards were applied retrospectively by
management to the comparative information in these financial
statements, including the balance sheets as at December 31,
2010 and January 1, 2010, and the statements of income, retained
earnings and cash flows for the year ended December 31, 2010 and
related disclosures. We were not engaged to report on the restated
comparative information, and as such, it is neither audited nor
reviewed.
[Public accountant’s signature]
[Date of the review engagement report]
[Public accountant’s address]

2(f) Canadian Accounting Standards for Not-for-Profit Organizations Are
Adopted on the Effective Date — Auditor’s Report Refers to Each
Period for which Financial Statements Are Presented

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
not-for-profit organizations is the year ended December 31, 2012.
• The auditor’s report refers to each period for which financial
statements are presented.
• The auditor’s report on the prior year, as previously issued,
included a qualified opinion arising from a scope limitation.
• The matter giving rise to the modification is unresolved.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for not-for-profit organizations
would include the entity’s statements of financial position as at:
(a) December 31, 2012;
(b) December 31, 2011; and
(c) January 1, 2011 (opening statement of financial position
prepared in accordance with Canadian accounting standards
for not-for-profit organizations).
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2011 and
December 31, 2010. However, these financial statements are not
included in the first financial statements of the entity prepared in
accordance with Canadian accounting standards for not-for-profit
organizations. Rather, the first financial statements prepared in
accordance with Canadian accounting standards for not-for-profit
organizations include the financial statements for the year ended
December 31, 2011 and the January 1, 2011 opening statement
of financial position prepared in accordance with Canadian
accounting standards for not-for-profit organizations. Unless
specifically engaged to do so, the auditor will not have audited
and reported on these financial statements. Accordingly, in order
for the auditor’s report to refer to each period for which financial
statements are presented, the auditor would need to audit the
financial statements for the year ended December 31, 2011 and the
January 1, 2011 opening statement of financial position prepared in
accordance with Canadian accounting standards for not-for-profit
organizations.
3. Under paragraph 6(c) of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, the
comparative information is considered to be “comparative financial
statements”. Comparative financial statements are included for
comparison with the financial statements of the current period.
The level of information included in those comparative financial
statements is comparable with that of the financial statements of
the current period. This Illustrative Report is based on Illustration 4
in CAS 710.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC Notfor-
Profit Organization, which comprise the statements of financial
position as at December 31, 2012, December 31, 2011 and January 1,
2011, and the statements of operations, changes in net assets and cash
flows for the years ended December 31, 2012 and December 31, 2011,
and a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for not-for-profit organizations, and for such internal control
as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our qualified audit
opinion.
Basis for Qualified Opinion
In common with many not-for-profit organizations, ABC Not-for-
Profit Organization derives revenue from fundraising activities
the completeness of which is not susceptible to satisfactory audit
verification. Accordingly, verification of these revenues was limited
to the amounts recorded in the records of ABC Not-for-Profit
Organization. Therefore, we were not able to determine whether any
adjustments might be necessary to fundraising revenue, excess of
revenues over expenses, and cash flows from operations for the years
ended December 31, 2012 and December 31, 2011, current assets and
net assets as at December 31, 2012, December 31, 2011 and January 1,
2011.
Qualified Opinion
In our opinion, except for the possible effects of the matter described
in the Basis for Qualified Opinion paragraph, the financial statements
present fairly, in all material respects, the financial position of ABC
Not-for-Profit Organization as at December 31, 2012, December 31,
2011 and January 1, 2011, and the results of its operations and its cash
flows for the years ended December 31, 2012 and December 31, 2011
in accordance with Canadian accounting standards for not-for-profit
organizations.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(g) Canadian Accounting Standards for Not-for-Profit Organizations
Are Adopted on the Effective Date — Auditor’s Report Refers to the
Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
not-for-profit organizations is the year ended December 31, 2012.
• The auditor’s report refers to the current period only.
• The auditor’s report on the prior year, as previously issued,
included a qualified opinion arising from a scope limitation.
• The matter giving rise to the modification is unresolved.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. The entity’s first financial statements prepared in accordance with
Canadian accounting standards for not-for-profit organizations
would include the entity’s statements of financial position as at:
(a) December 31, 2012;
(b) December 31, 2011; and
(c) January 1, 2011 (opening statement of financial position
prepared in accordance with Canadian accounting standards
for not-for-profit organizations).
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the years ended December 31, 2011 and
December 31, 2010. However, these financial statements are not
included in the first financial statements of the entity prepared in
accordance with Canadian accounting standards for not-for-profit
organizations. Rather, the first financial statements prepared in
accordance with Canadian accounting standards for not-for-profit
organizations include the financial statements for the year ended
December 31, 2011 and the January 1, 2011 opening statement
of financial position prepared in accordance with Canadian
accounting standards for not-for-profit organizations. Unless
specifically engaged to do so, the auditor will not have audited
and reported on these financial statements. The auditor will have
performed procedures with respect to the comparative information
as required by paragraphs 7-9 of CAS 710, Comparative Information
— Corresponding Figures and Comparative Financial Statements,
but these procedures are not necessarily themselves sufficient for
the auditor to opine on the comparative information.
3. Under paragraph 6(b) of CAS 710, the comparative information is
considered to be “corresponding figures”. Corresponding figures
are amounts and disclosures for the prior period included as an
integral part of the current period financial statements, and are
intended to be read only in relation to the amounts and other
disclosures relating to the current period (referred to as “current
period figures”). The level of detail presented in the corresponding
amounts and disclosures is dictated primarily by its relevance
to the current period figures. This Illustrative Report is based on
Illustration 3 in CAS 710.
4. The auditor’s report indicates that the comparative information
is unaudited in a paragraph after the opinion paragraph in
accordance with paragraph 14 of CAS 710 in order to clearly
indicate to readers that the December 31, 2011 financial statements
and the January 1, 2011 opening statement of financial position
prepared in accordance with Canadian accounting standards for
not-for-profit organizations have not been audited. The paragraph
also makes reference to the note to the financial statements that
describes the transition to Canadian accounting standards for
not-for-profit organizations. This form of paragraph has been
developed to address the specific circumstances discussed in Q&A
1(d) in this Guide when the comparative information is unaudited
and is not intended to address other circumstances.
5. Because the comparative information is unaudited, the Basis for
Qualified Opinion paragraph makes reference only to the possible
effects of the scope limitation on the financial statements for the
year ended December 31, 2012.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC Notfor-
Profit Organization, which comprise the statement of financial
position as at December 31, 2012, and the statements of operations,
changes in net assets and cash flows for the year then ended, and
a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for not-for-profit organizations, and for such internal control
as management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our qualified audit opinion.
Basis for Qualified Opinion
In common with many not-for-profit organizations, ABC Not-for-
Profit Organization derives revenue from fundraising activities
the completeness of which is not susceptible to satisfactory audit
verification. Accordingly, verification of these revenues was limited
to the amounts recorded in the records of ABC Not-for-Profit
Organization. Therefore, we were not able to determine whether any
adjustments might be necessary to fundraising revenue, excess of
revenues over expenses, and cash flows from operations for the year
ended December 31, 2012, current assets as at December 31, 2012 and
net assets as at January 1 and December 31, 2012.
Qualified Opinion
In our opinion, except for the possible effects of the matter described
in the Basis for Qualified Opinion paragraph, the financial statements
present fairly, in all material respects, the financial position of ABC Notfor-
Profit Organization as at December 31, 2012, and the results of its
operations and its cash flows for the year then ended in accordance
with Canadian accounting standards for not-for-profit organizations.
Comparative Information
Without modifying our opinion, we draw attention to Note X to
the financial statements which describes that ABC Not-for-Profit
Organization adopted Canadian accounting standards for not-for-profit
organizations on January 1, 2012 with a transition date of January 1,
2011. These standards were applied retrospectively by management to
the comparative information in these financial statements, including the
statements of financial position as at December 31, 2011 and January 1,
2011, and the statements of operations, changes in net assets and cash
flows for the year ended December 31, 2011 and related disclosures. We
were not engaged to report on the restated comparative information,
and as such, it is unaudited.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(h) Canadian Accounting Standards for Pension Plans Are Adopted on
the Effective Date — Auditor’s Report Refers to Each Period for which
Financial Statements Are Presented

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
pension plans is the year ended December 31, 2011.
• An opening statement of financial position is not presented.
• The auditor’s report refers to each period for which financial
statements are presented.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. A pension plan applies the general financial statement presentation
requirements, including “comparative information”, in either IFRSs
in Part I or Canadian accounting standards for private enterprises
in Part II of the CPA Canada Handbook – Accounting (see Pension
Plans, paragraphs 4600.07-.08, in Part IV of the CPA Canada
Handbook – Accounting). When a pension plan adopts Canadian
accounting standards for pension plans for the first time, it is
required to apply the standards retrospectively to all periods
presented. It is not required to refer to the requirements in IFRS 1
First-time Adoption of International Financial Reporting Standards
in Part I, or Section 1500, First-time Adoption in Part II of the CPA
Canada Handbook – Accounting. Instead, a pension plan applies
the general guidance on accounting policy changes in IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
in Part I, or Section 1506, Accounting Changes in Part II of the
CPA Canada Handbook – Accounting, depending on the basis of
accounting chosen. Therefore, a pension plan that chooses to apply
IFRSs as its basis of accounting and applies an accounting policy
change retrospectively to the comparative information is required
by paragraph 39 of IAS 1 Presentation of Financial Statements in
Part I to present an opening statement of financial position on
adoption of Section 4600, Pension Plans, in Part IV of the CPA
Canada Handbook – Accounting. In contrast, those pension plans
that choose to apply Canadian accounting standards for private
enterprises are not faced with a similar requirement.
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the year ended December 31, 2010.
However, these financial statements are not included in the first
financial statements of the entity prepared in accordance with
Canadian accounting standards for pension plans. Rather, the
first financial statements prepared in accordance with Canadian
accounting standards for pension plans include the financial
statements for the year ended December 31, 2010 prepared in
accordance with Canadian accounting standards for pension plans.
Unless specifically engaged to do so, the auditor will not have
audited and reported on these financial statements. Accordingly,
in order for the auditor’s report to refer to each period for which
financial statements are presented, the auditor would need to audit
the financial statements for the year ended December 31, 2010
prepared in accordance with Canadian accounting standards for
pension plans.
3. Under paragraph 6(c) of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, the
comparative information is considered to be “comparative financial
statements”. Comparative financial statements are included for
comparison with the financial statements of the current period.
The level of information included in those comparative financial
statements is comparable with that of the financial statements of
the current period. This Illustrative Report is based on Illustration 4
in CAS 710.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Pension Plan, which comprise the statements of financial position as
at December 31, 2011 and December 31, 2010, and the statements of
changes in net assets available for benefits and changes in pension
obligations for the years then ended, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for pension plans, and for such internal control as
management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Pension Plan as at December 31,
2011 and December 31, 2010, and the changes in its net assets available
for benefits and changes in its pension obligations for the years then
ended in accordance with Canadian accounting standards for pension
plans.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(i) Canadian Accounting Standards for Pension Plans Are Adopted on the
Effective Date — Auditor’s Report Refers to the Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian accounting standards for
pension plans is the year ended December 31, 2011.
• An opening statement of financial position is not presented.
• The auditor’s report refers to the current period only.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. A pension plan applies the general financial statement presentation
requirements, including “comparative information”, in either IFRSs
in Part I or Canadian accounting standards for private enterprises
in Part II of the CPA Canada Handbook – Accounting (see Pension
Plans, paragraphs 4600.07-.08, in Part IV of the CPA Canada
Handbook – Accounting). When a pension plan adopts Canadian
accounting standards for pension plans for the first time, it is
required to apply the standards retrospectively to all periods
presented. It is not required to refer to the requirements in IFRS 1
First-time Adoption of International Financial Reporting Standards
in Part I, or Section 1500, First-time Adoption in Part II of the CPA
Canada Handbook – Accounting. Instead, a pension plan applies
the general guidance on accounting policy changes in IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors
in Part I, or Section 1506, Accounting Changes in Part II of the
CPA Canada Handbook – Accounting, depending on the basis of
accounting chosen. Therefore, a pension plan that chooses to apply
IFRSs as its basis of accounting and applies an accounting policy
change retrospectively to the comparative information is required
by paragraph 39 of IAS 1 Presentation of Financial Statements in
Part I to present an opening statement of financial position on
adoption of Section 4600, Pension Plans, in Part IV of the CPA
Canada Handbook – Accounting. In contrast, those pension plans
that choose to apply Canadian accounting standards for private
enterprises are not faced with a similar requirement.
2. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with pre-changeover
accounting standards for the year ended December 31, 2010.
However, these financial statements are not included in the first
financial statements of the entity prepared in accordance with
Canadian accounting standards for pension plans. Rather, the
first financial statements prepared in accordance with Canadian
accounting standards for pension plans include the financial
statements for the year ended December 31, 2010 prepared in
accordance with Canadian accounting standards for pension plans.
Unless specifically engaged to do so, the auditor will not have
audited and reported on these financial statements. The auditor
will have performed procedures with respect to the comparative
information as required by paragraphs 7-9 of CAS 710, Comparative
Information — Corresponding Figures and Comparative Financial
Statements, but these procedures are not necessarily themselves
sufficient for the auditor to opine on the comparative information.
3. Under paragraph 6(b) of CAS 710, the comparative information is
considered to be “corresponding figures”. Corresponding figures
are amounts and disclosures for the prior period included as an
integral part of the current period financial statements, and are
intended to be read only in relation to the amounts and other
disclosures relating to the current period (referred to as “current
period figures”). The level of detail presented in the corresponding
amounts and disclosures is dictated primarily by its relevance
to the current period figures. This Illustrative Report is based on
Illustration 3 in CAS 710.
4. The auditor’s report indicates that the comparative information
is unaudited in a paragraph after the opinion paragraph in
accordance with paragraph 14 of CAS 710 in order to clearly
indicate to readers that the December 31, 2010 financial statements
prepared in accordance with Canadian accounting standards for
pension plans have not been audited. The paragraph also makes
reference to the note to the financial statements that describes
the adoption of Canadian accounting standards for pension
plans. This form of paragraph has been developed for the same
reasons discussed in Q&A 1(d) in this Guide when the comparative
information is unaudited and is not intended to address other
circumstances.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Pension Plan, which comprise the statement of financial position as
at December 31, 2011, and the statements of changes in net assets
available for benefits and changes in pension obligations for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of these financial statements in accordance with Canadian accounting
standards for pension plans, and for such internal control as
management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Pension Plan as at December 31,
2011, and the changes in its net assets available for benefits and
changes in its pension obligations for the year then ended in
accordance with Canadian accounting standards for pension plans.
Comparative Information
Without modifying our opinion, we draw attention to Note X to the
financial statements, which describes that ABC Pension Plan adopted
Canadian accounting standards for pension plans on January 1, 2011
with a transition date of January 1, 2010. These standards were applied
retrospectively by management to the comparative information in
these financial statements. We were not engaged to report on the
restated comparative information, and as such, it is unaudited.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(j) Canadian Public Sector Accounting Standards Are Adopted on the
Effective Date By an Entity Transitioning from Another Basis of
GAAP — Auditor’s Report Refers to Each Period for which Financial
Statements Are Presented

• The financial statement period for the first financial statements
prepared in accordance with Canadian public sector accounting
standards is the year ended March 31, 2012.
• The auditor’s report refers to each period for which financial
statements are presented.
• The auditor is required by legislation to report on the consistent
application of accounting principles in the applicable financial
reporting framework.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. When an entity is transitioning from another basis of GAAP, the
entity is required to follow Section PS 2125, First-Time Adoption
by Government Organizations, in the CPA Canada Public Sector
Accounting Handbook. Section PS 2125 requires that the adoption
of Canadian public sector accounting standards is to be accounted
for by retroactive application with restatement of prior periods
subject to the requirements in the Section.
2. The entity’s first financial statements prepared in accordance with
Canadian public sector accounting standards would include the
entity’s statements of financial position as at:
(a) March 31, 2012;
(b) March 31, 2011; and
(c) April 1, 2010 (opening statement of financial position prepared
in accordance with Canadian public sector accounting
standards).
3. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with another basis of GAAP
for the years ended March 31, 2011 and March 31, 2010. However,
these financial statements are not included in the first financial
statements of the entity prepared in accordance with Canadian
public sector accounting standards. Rather, the first financial
statements prepared in accordance with Canadian public sector
accounting standards include the financial statements for the year
ended March 31, 2011 and the April 1, 2010 opening statement of
financial position prepared in accordance with Canadian public
sector accounting standards. Unless specifically engaged to do so,
the auditor will not have audited and reported on these financial
statements. Accordingly, in order for the auditor’s report to refer
to each period for which financial statements are presented, the
auditor would need to audit the financial statements for the year
ended March 31, 2011 and the April 1, 2010 opening statement of
financial position prepared in accordance with Canadian public
sector accounting standards.
4. Under paragraph 6(c) of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, the
comparative information is considered to be “comparative financial
statements”. Comparative financial statements are included for
comparison with the financial statements of the current period.
The level of information included in those comparative financial
statements is comparable with that of the financial statements of
the current period. This Illustrative Report is based on Illustration 4
in CAS 710.
5. Assurance and Related Services Guideline AuG-48, Legislative
Requirements to Report on the Consistent Application of
Accounting Principles in the Applicable Financial Reporting
Framework, provides guidance when the auditor is required to
report on the consistent application of accounting principles in the
applicable financial reporting framework.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
Report on the Financial Statements
We have audited the accompanying financial statements of ABC
Government Organization, which comprise the statements of financial
position as at March 31, 2012, March 31, 2011 and April 1, 2010, and
the statements of operations, change in net debt and cash flow for
the years ended March 31, 2012 and March 31, 2011, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Canadian public sector
accounting standards, and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Government Organization as
at March 31, 2012, March 31, 2011 and April 1, 2010, and the results of
its operations, changes in its net debt, and its cash flows for the years
ended March 31, 2012 and March 31, 2011 in accordance with Canadian
public sector accounting standards.
Report on Other Legal and Regulatory Requirements
As required by [specify legislation or regulation], we report that, in our
opinion, the accounting principles in Canadian public sector accounting
standards have been applied on a consistent basis.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(k) Canadian Public Sector Accounting Standards Are Adopted on the
Effective Date By an Entity Transitioning from Another Basis of GAAP
— Auditor’s Report Refers to the Current Period Only

• The financial statement period for the first financial statements
prepared in accordance with Canadian public sector accounting
standards is the year ended March 31, 2012.
• The auditor’s report refers to the current period only.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. When an entity is transitioning from another basis of GAAP, the
entity is required to follow First-Time Adoption by Government
Organizations, Section PS 2125 in the CPA Canada Public Sector
Accounting Handbook. Section PS 2125 requires that the adoption
of Canadian public sector accounting standards is to be accounted
for by retroactive application with restatement of prior periods
subject to the requirements in the Section.
2. The entity’s first financial statements prepared in accordance with
Canadian public sector accounting standards would include the
entity’s statements of financial position as at:
(a) March 31, 2012;
(b) March 31, 2011; and
(c) April 1, 2010 (opening standard statement of financial
position prepared in accordance with Canadian public sector
accounting standards).
3. The auditor may have performed an audit of the entity’s financial
statements prepared in accordance with another basis of GAAP
for the years ended March 31, 2011 and March 31, 2010. However,
these financial statements are not included in the first financial
statements of the entity prepared in accordance with Canadian
public sector accounting standards. Rather, the first financial
statements prepared in accordance with Canadian public sector
accounting standards include the financial statements for the year
ended March 31, 2011 and the April 1, 2010 opening statement of
financial position prepared in accordance with Canadian public
sector accounting standards. Unless specifically engaged to do so,
the auditor will not have audited and reported on these financial
statements. The auditor will have performed procedures with
respect to the comparative information as required by paragraphs
7-9 of CAS 710, Comparative Information — Corresponding Figures
and Comparative Financial Statements, but these procedures are
not necessarily themselves sufficient for the auditor to opine on the
comparative information.
4. Under paragraph 6(b) of CAS 710, the comparative information is
considered to be “corresponding figures”. Corresponding figures
are amounts and disclosures for the prior period included as an
integral part of the current period financial statements, and are
intended to be read only in relation to the amounts and other
disclosures relating to the current period (referred to as “current
period figures”). The level of detail presented in the corresponding
amounts and disclosures is dictated primarily by its relevance
to the current period figures. This Illustrative Report is based on
Illustration 3 in CAS 710.
5. The auditor’s report indicates that the comparative information
is unaudited in a paragraph after the opinion paragraph in
accordance with paragraph 14 of CAS 710 in order to clearly
indicate to readers that the March 31, 2011 financial statements
and the April 1, 2010 opening statement of financial position
prepared in accordance with Canadian public sector accounting
standards have not been audited. The paragraph also makes
reference to the note to the financial statements that describes
the transition to Canadian public sector accounting standards.
This form of paragraph has been developed to address the
specific circumstances discussed in Q&A 1(d) in this Guide when
the comparative information is unaudited and is not intended to
address other circumstances.
6. Assurance and Related Services Guideline AuG-48, Legislative
Requirements to Report on the Consistent Application of
Accounting Principles in the Applicable Financial Reporting
Framework, provides guidance when the auditor is required to
report on the consistent application of accounting principles in
the applicable financial reporting framework. This is a common
requirement in the public sector. As discussed in paragraph 10
of Q&A 1(d) in this Guide, when the auditor’s report refers to
the current period only the auditor’s work effort to comply with
CAS 510, Initial Engagements — Opening Balances, may not be
significantly different than the work effort required to report on all
periods presented. Accordingly, the auditor may have performed
sufficient audit procedures to be able to report on the consistent
application of accounting principles. Illustrative Report 2(j)
contains an example of such a report.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Government Organization, which comprise the statement of financial
position as at March 31, 2012, and the statements of operations, change
in net debt and cash flow for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Canadian public sector
accounting standards, and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Government Organization as at
March 31, 2012, and the results of its operations, changes in its net debt,
and its cash flows for the year then ended in accordance with Canadian
public sector accounting standards.
Comparative Information
Without modifying our opinion, we draw attention to Note X to
the financial statements, which describes that ABC Government
Organization adopted Canadian public sector accounting standards on
April 1, 2011 with a transition date of April 1, 2010. These standards were
applied retroactively by management to the comparative information
in these financial statements, including the statements of financial
position as at March 31, 2011 and April 1, 2010, and the statements of
operations, change in net debt and cash flow for the year ended March
31, 2011 and related disclosures. We were not engaged to report on the
restated comparative information, and as such, it is unaudited.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(l) Canadian Public Sector Accounting Standards Are Adopted on the
Effective Date By an Entity Not Transitioning from Another Basis of
GAAP — Auditor’s Report Refers to Each Period for which Financial
Statements Are Presented

• The financial statement period for the first financial statements
prepared in accordance with Canadian public sector accounting
standards is the year ended March 31, 2012.
• The new accounting standards have been applied retroactively.
• An opening statement of financial position is not presented.
• The auditor’s report refers to each period for which financial
statements are presented.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. When an entity that is not transitioning from another basis of
GAAP adopts Canadian public sector accounting standards for
the first time, Accounting Changes, paragraph PS 2120.13 in the
CPA Canada Public Sector Accounting Handbook permits the new
accounting standards to be applied retroactively or prospectively.
However, regardless of whether the accounting standards are
applied retroactively or prospectively, such an entity is not required
to present an opening statement of financial position and other
related disclosures as are required by Section PS 2125, First-Time
Adoption by Government Organizations. Because it is extremely
rare for such an entity to apply the new accounting standards
prospectively, the Illustrative Reports in this Guide only deal with
retroactive application.
2. The auditor may have performed an audit of the entity’s financial
statements not prepared in accordance with another basis of
GAAP for the year ended March 31, 2011. However, these financial
statements are not included in the first financial statements of
the entity prepared in accordance with Canadian public sector
accounting standards. Rather, the first financial statements
prepared in accordance with Canadian public sector accounting
standards include the financial statements for the year ended
March 31, 2011 prepared in accordance with Canadian public sector
accounting standards. Unless specifically engaged to do so, the
auditor will not have audited and reported on these financial
statements. Accordingly, in order for the auditor’s report to refer
to each period for which financial statements are presented, the
auditor would need to audit the financial statements for the year
ended March 31, 2011 prepared in accordance with Canadian public
sector accounting standards.
3. Under paragraph 6(c) of CAS 710, Comparative Information —
Corresponding Figures and Comparative Financial Statements, the
comparative information is considered to be “comparative financial
statements”. Comparative financial statements are included for
comparison with the financial statements of the current period.
The level of information included in those comparative financial
statements is comparable with that of the financial statements of
the current period. This Illustrative Report is based on Illustration 4
in CAS 710.
4. Assurance and Related Services Guideline AuG-48, Legislative
Requirements to Report on the Consistent Application of
Accounting Principles in the Applicable Financial Reporting
Framework, provides guidance when the auditor is required to
report on the consistent application of accounting principles in
the applicable financial reporting framework. This is a common
requirement in the public sector. Illustrative Report 2(j) in this
Guide contains an example of such a report.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Government Organization, which comprise the statements of financial
position as at March 31, 2012 and March 31, 2011, and the statements
of operations, change in net debt and cash flow for the years ended
March 31, 2012 and March 31, 2011, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Canadian public sector
accounting standards, and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained in our audits is
sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Government Organization as
at March 31, 2012 and March 31, 2011 and the results of its operations,
changes in its net debt, and its cash flows for the years ended March
31, 2012 and March 31, 2011 in accordance with Canadian public sector
accounting standards.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

2(m) Canadian Public Sector Accounting Standards Are Adopted on the
Effective Date By an Entity Not Transitioning from Another Basis of
GAAP — Auditor’s Report Refers to the Current Period Only

• The financial statement period for the first financial statements in
accordance with Canadian public sector accounting standards is
the year ended March 31, 2012.
• The new accounting standards have been applied retroactively.
• An opening statement of financial position is not presented.
• The auditor’s report refers to the current period only.
• The audit is conducted in accordance with Canadian Auditing
Standards.
(Please read Introduction to Illustrative Reports)
1. When an entity that is not transitioning from another basis of
GAAP adopts Canadian public sector accounting standards for
the first time, Accounting Changes, paragraph PS 2120.13 in the
CPA Canada Public Sector Accounting Handbook permits the new
accounting standards to be applied retroactively or prospectively.
However, regardless of whether the accounting standards are
applied retroactively or prospectively, such an entity is not required
to present an opening statement of financial position and other
related disclosures as are required by Section PS 2125, First-Time
Adoption by Government Organizations. Because it is extremely
rare for such an entity to apply the new accounting standards
prospectively, the Illustrative Reports in this Guide only deal with
retroactive application.
2. The auditor may have performed an audit of the entity’s financial
statements not prepared in accordance with another basis of
GAAP for the year ended March 31, 2011. However, these financial
statements are not included in the first financial statements of
the entity prepared in accordance with Canadian public sector
accounting standards. Rather, the first financial statements
prepared in accordance with Canadian public sector accounting
standards include the financial statements for the year ended
March 31, 2011 prepared in accordance with Canadian public sector
accounting standards. Unless specifically engaged to do so, the
auditor will not have audited and reported on these financial
statements. The auditor will have performed procedures with
respect to the comparative information as required by paragraphs
7-9 of CAS 710, Comparative Information — Corresponding Figures
and Comparative Financial Statements, but these procedures are
not necessarily themselves sufficient for the auditor to opine on the
comparative information.
3. Under paragraph 6(b) of CAS 710, the comparative information is
considered to be “corresponding figures”. Corresponding figures
are amounts and disclosures for the prior period included as an
integral part of the current period financial statements, and are
intended to be read only in relation to the amounts and other
disclosures relating to the current period (referred to as “current
period figures”). The level of detail presented in the corresponding
amounts and disclosures is dictated primarily by its relevance
to the current period figures. This Illustrative Report is based on
Illustration 3 in CAS 710.
4. The auditor’s report indicates that the comparative information
is unaudited in a paragraph after the opinion paragraph in
accordance with paragraph 14 of CAS 710 in order to clearly
indicate to readers that the March 31, 2011 financial statements
prepared in accordance with Canadian public sector accounting
standards have not been audited. The paragraph also makes
reference to the note to the financial statements that describes
the adoption of Canadian public sector accounting standards.
This form of paragraph has been developed for the same reasons
discussed in Q&A 1(d) in this Guide when the comparative
information is unaudited and is not intended to address other
circumstances.
5. Assurance and Related Services Guideline AuG-48, Legislative
Requirements to Report on the Consistent Application of
Accounting Principles in the Applicable Financial Reporting
Framework, provides guidance when the auditor is required to
report on the consistent application of accounting principles in
the applicable financial reporting framework. This is a common
requirement in the public sector. As discussed in paragraph 10
of Q&A 1(d) in this Guide, when the auditor’s report refers to
the current period only the auditor’s work effort to comply with
CAS 510, Initial Engagements — Opening Balances, may not be
significantly different than the work effort required to report on all
periods presented. Accordingly, the auditor may have performed
sufficient audit procedures to be able to report on the consistent
application of accounting principles. Illustrative Report 2(j)
contains an example of such a report.
INDEPENDENT AUDITOR’S REPORT
[Appropriate Addressee]
We have audited the accompanying financial statements of ABC
Government Organization, which comprise the statement of financial
position as at March 31, 2012, and the statements of operations, change
in net debt and cash flow for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with Canadian public sector
accounting standards, and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
Canadian generally accepted auditing standards. Those standards
require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material
respects, the financial position of ABC Government Organization as at
March 31, 2012, and the results of its operations, changes in its net debt,
and its cash flows for the year then ended in accordance with Canadian
public sector accounting standards.
Comparative Information
Without modifying our opinion, we draw attention to Note X to
the financial statements, which describes that ABC Government
Organization adopted Canadian public sector accounting standards on
April 1, 2011 with a transition date of April 1, 2010. These standards were
applied retroactively by management to the comparative information
in these financial statements. We were not engaged to report on the
restated comparative information, and as such, it is unaudited.
[Auditor’s signature]
[Date of the auditor’s report]
[Auditor’s address]

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