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This summary of decisions of the Auditing and Assurance Standards Board (AASB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects, which might change after further deliberations by the AASB. Decisions to publish exposure draft and Handbook material are final only after a formal ballot process.
For more detailed information about AASB projects, please refer to the project summaries under Projects. |
Canadian-Specific Projects Projects to develop material that will be included in the future Handbook Preface to the Canadian Standards on Quality Control, Auditing, Review, Other Assurance and Related Services
The AASB discussed project issues and completed a second read of an exposure draft. Auditor’s Report on Financial Statements of Federally Regulated Financial Institutions
The AASB discussed project issues. Other Proposed ISAE 3402, Assurance Reports on Controls at a Third Party Service Organization
The AASB reviewed the draft IAASB ED of International Standard for Assurance Engagements (ISAE) 3402 and will monitor the development of this standard to assess whether it should be adopted for use in Canada. (Unlike International Standards on Auditing (ISAs), the AASB is not committed to adopting ISAEs). - Proposed guidance to be developed by the IAASB
The AASB reviewed IAASB project proposals to develop guidance on: - providing assurance on carbon emissions information; and
- auditing fair values.
The AASB agreed that these international projects should be closely monitored to assess whether the AASB should issue guidance on these matters and, if so, whether the international materials should be adopted for use in Canada. Proposed New Accounting Framework for Owner Managed Enterprises
The AASB discussed possible implications for the wording of assurance standards if the proposed new accounting framework were to come into effect. A revised proposal to undertake a project to specifically identify changes to assurance standards that would be needed will be reviewed by the AASB at its meeting in February 2008. The AASB also provided comments to the CICA Vice President, Standards, on the proposed framework. Projects Related to the Adoption of International Standards on Auditing - The AASB performed first reads of Exposure Drafts of proposed Canadian Auditing Standards (CASs), which are based on the IAASB Exposure Drafts that either revise and replace current Canadian Handbook Sections, or result in new standards based on the equivalent ISAs. These Exposure Drafts fall into two categories:
- The first category includes Exposure Drafts that are based on IAASB Exposure Drafts that propose to redraft in clarity format, but not otherwise revise, the following ISAs:
| — | ISA 210, Agreeing the Terms of Audit Engagements | | — | ISA 501, Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures | | — | ISA 520, Analytical Procedures | | — | ISA 710, Comparative Information — Corresponding Figures and Comparative Financial Statements | | — | ISA XXX (new ISA), Communicating Deficiencies in Internal Control |
- The second category includes an Exposure Draft that is based on an IAASB Exposure Draft that proposes to both redraft in the clarity format and significantly revise the following ISA:
| — | ISA 402, Audit Considerations Relating to an Entity Using a Third Party Service Organization |
The AASB discussed issues relating to the IAASB’s final approval of the following ISAs: | — | ISA 540 (Revised and Redrafted), Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures | | — | ISA 550 (Revised and Redrafted), Related Parties | | — | ISA 560 (Redrafted), Subsequent Events | | — | ISA 580 (Revised and Redrafted), Written Representations |
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