CLEAR ROLES IN THE CLIENT’S INTEREST

The Joint Policy Statement (JPS) on Audit Inquiries addresses communication between lawyers and auditors. Renegotiated in 2016 with the Auditing and Assurance Standards Board  (replacing the 1978 AuG-46 and 2010 Interim Guidance as of December 1, 2016) the JPS clarifies the roles of the lawyer, the client and the auditor in the preparation of the client’s financial statements.

Why Lawyers Need the JPS

The auditor’s report on financial statements is a statutory requirement for many corporations. Auditing procedures may include communicating with the corporation’s lawyer who is regarded as uniquely qualified to comment on the claims that might affect the statement. The JPS helps ensure clarity around how lawyers and auditors communicate with the aim of protecting solicitor-client privilege.

Frequently Asked Questions about the JPS

The FAQ document and flowchart were prepared to help the legal profession implement the JPS protocols in practice.