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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 completed a first read of an Exposure Draft of a Preface to Canadian Standards. Canadian Assurance Engagement Standards
The AASB discussed issues surrounding the development of Canadian Assurance Engagement Standards (CAESs) covering quality control, internal audit and use of experts. No exposure drafts of proposed CAESs will be issued until AASB further considers issues related to such standards, including their relationship with other standards, such as Canadian Auditing Standards, that will be included in the new Handbook. Projects to develop material that will be included in the existing Handbook Auditor Assistance to Directors on Continuous Disclosure Information
The AASB discussed issues related to the Draft Guideline. The AASB asked its Securities Regulation Advisory Group to reconsider aspects of the project. This project, and the nature and form of the output from this work, will be considered further by AASB at a future meeting. Other Operations Planning
The AASB discussed issues related to the operations plan for 2007-2008, including transition issues related to the adoption of ISAs. Strategic Planning
In its Invitation to Comment, Auditing and Assurance Standards in Canada – Maintaining High Standards in a Global Environment: A New Standard-Setting Approach, issued in 2006, the AASB included a commitment to stakeholders to conduct a formal reassessment of the AASB’s approach with respect to the adoption of International Standards on Auditing (ISAs). The AASB has performed this reassessment and concluded that it should continue with its adoption plan. The AASB will continue to monitor and appropriately respond to significant developments as it proceeds to implement its plan. Proposed New Accounting Framework for Owner-Managed Enterprises
The AASB discussed the CICA’s plan to develop a new accounting framework for owner-managed enterprises and possible implications for assurance and related services standards. Projects Related to the Adoption of International Standards on Auditing The AASB discussed issues relating to the IAASB’s development of exposure drafts of the following projects: | — | ISA 402, Audit Considerations Relating to an Entity Using Service Organizations | | — | ISAE 3402, Assurance on a Service Organization’s Controls |
The AASB reviewed and approved Exposure Drafts of proposed Canadian Auditing Standards (CASs), which are based on the IAASB Exposure Drafts that propose to both redraft in the clarity format and significantly revise the following ISAs:
| — | ISA 505, External Confirmations | | — | ISA 620, Using the Work of an Auditor’s Expert |
The AASB reviewed and approved the following final Handbook material:
— | CAS 600, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors) |
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