Canadian Professional Engagement Manual (C•PEM)

Auteur : CPA Canada

Next update: September 2017

7th edition, June 2016


This is the final year that the C•PEM will be published. In 2017, this Manual will be replaced by a new publication entitled the Professional Engagement Guide (PEG), which will include a number of changes to Volumes 1 and 2 as well as new materials from the CGA Professional Practice Manual.

The changes for this 2016 C•PEM update include:

  1. A revised chart on the process of completing an audit, which now follows a 12-step audit approach.
  2. A number of updates to the sample letters package, including the addition of 19 new letters.
    The new sample letters published in the 2016 update of the Canadian Professional Engagement Manual (C•PEM) are currently being adapted for Québec and will be available as of September 2016.
  3. A new Volume 2 chapter (Chapter 23) on completing the audit file.
  4. Wording revisions, primarily in Volume 2, to provide additional guidance on how to implement the C•PEM 12-step audit process.
  5. A number of relatively minor changes to the C•PEM audit forms with a goal to clearly link the forms and checklists to the C•PEM 12-step audit process.
  6. Minor updates to the sample completed forms within the Volume 2 case studies to reflect the changes made to the C•PEM audit forms.


The C•PEM is designed to help practitioners perform efficient, cost-effective audit, review and compilation engagements for small- and medium-sized entities (SMEs). The two-volume C•PEM is also a key resource for training staff and providing just-in-time guidance. Volume 1 discusses key concepts and Volume 2 provides a comprehensive road map to performing assurance engagements. Guidance on documenting audit requirements is provided through two SME case studies with completed audit forms and memorandums.

The Canadian Professional Engagement Manual (C•PEM) two-volume set provides comprehensive commentary and guidance on the Canadian Auditing Standards (CASs) and Other Canadian Standards (OCSs), illustrative case studies for performing an SME audit engagement and print-ready forms and letters for use on engagements and for training purposes.

Highlights of the 2016 edition

Notice to Québec CPAs

CPAs should note that the Canadian Professional Engagement Manual (C•PEM) is developed by CPA Canada and that some documents must be adapted to take into account Québec regulations. Québec members who subscribe to the Canadian Professional Engagement Manual (C•PEM), may access free of charge, sample letters in which some text has been crossed out to highlight excerpts that must be removed in order to comply with Québec regulations. To access these letters, follow the links in the sample letters in Part D of the C•PEM.

The new sample letters published in the 2016 update of the Canadian Professional Engagement Manual (C•PEM) are currently being adapted for Québec and will be available as of September 2016.

Furthermore, CPAs interested by the questionnaires and checklists presented in the C•PEM can purchase the following tools from the Order.



Volume 1 — Core Concepts

This volume addresses some of the key concepts used in the assurance standards. It includes chapters on matters such as materiality, internal control, risk assessment procedures, further audit procedures and the nature of a review engagement.

Volume 2 — Practical Guidance

Presented in four parts:

  • Part A provides a practical step-by-step approach to completing an audit engagement from client acceptance, planning and risk assessment through to risk response, evaluating audit evidence and forming an audit opinion. Each chapter contains illustrative audit documentation based on two case studies involving the audit of two small entities.Parts B and C provide comprehensive guidance on review and compilation engagements.
  • Part D includes print-ready PDFs of the C•PEM sample forms, worksheets and sample engagement letters. Also included in these practice aids is a PDF of the publication entitled Model Financial Statements — Private Enterprises, Part II of the CPA Canada Handbook – Accounting (September 2015). Developed in collaboration with the CPA in public practice Committee of the Ordre des comptables professionnels agréés du Québec, the model financial statements provide practical examples and guidance for the preparation of financial statements.
    Important Notice: Due to production delays, the PDF file of the Model Financial Statements – Private Enterprises, included in your subscription to the C•PEM correspond to the 2015 version. The 2016 version will be available in late fall of 2016 and an update will be sent.


To ensure that subscribers have access to the most recent information on engagements carried out in Canada, the Knotia (online) version of the C•PEM is now the official version of the publication and will be updated in real time as soon as changes will be announced during the year. Other versions of the C•PEM continue to be updated regularly as before: the paper version will be updated and published annually, and versions of the Virtual Professional Library on DVD and via download will be updated as soon as changes become known.

If you do not subscribe to the online version of the C•PEM and you wish to modify your subscription, you may do so at no extra charge. For general information, please contact CPA Canada Customer Service at 1-800-268-3793.

C•PEM is available in two volumes: through searchable DVD, download or Internet.


Available in a handy two-volume set, the print version of C•PEM also includes a CD with print-ready practice aids: PDFs of the sample forms, worksheets and engagement letters and “Model Financial Statements — Private Enterprises, Part II of the CPA Canada Handbook”.


Linked and fully searchable, the Internet version provides users with quick, online access to the information and guidance necessary to keep your firm on track. Includes PDFs of all practice aids.


Protected, fully searchable, and always on your desktop or laptop to answer your tough questions, the Virtual Professional Library DVD and Download options give you fingertip access to the information you need. Includes PDFs of all practice aids.

Target clientele

CPAs in public practice

French available

Guide du praticien canadien (GDP-CA)

Description complète