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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
Transition of Standards and Guidance other than Canadian Auditing Standards to the future Handbook
As previously announced, the AASB is adopting International Standards on Auditing (ISAs) as Canadian Auditing Standards (CASs) that will come into effect for audits of financial statements for periods beginning on or after December 15, 2009. The development of the new Handbook is in the AASB’s 2008-09 work plan. Creating an internally consistent Handbook in a new structure will require significant conforming amendments to non-CAS standards and guidance. The AASB’s agenda for this meeting included discussion of the possible conforming amendments required for the following non-CAS standards and guidance, in order to fit within the new structure and be consistent with the CASs: Section 5025, Standards for Assurance Engagements
Section 5030, Quality Control Procedures for Assurance Engagements
Section 5049, Use of Specialists in Assurance Engagements
Section 5050, Using the Work of Internal Audit
Section 5800, Special Reports – Introduction
Section 5815, Special Reports – Audit Reports on Compliance with Agreements, Statues and Regulations
AuG-13, Special Reports on Regulated Financial Institutions The AASB concluded that the nature and extent of required changes to these standards are more complex than originally thought. Although the CASs will come into effect on December 15, 2009, the AASB will further consider various approaches to developing the form and content of the new Handbook. The AASB asked staff to develop a plan to address these matters for discussion by AASB at its next face-to-face meeting. The AASB will provide stakeholders with timely information on its plans for the future structure and content of the Handbook and related projects to revise existing standards, including any related consultations with stakeholders. Other CICA’s Proposed New Accounting Framework for Owner-Managed Enterprises (FOME)
The AASB received an update on the status of this project as well as the results of the discussion of this item at a recent Accounting Standards Board (AcSB). The AASB will continue to monitor the progress of the FOME project and its possible effect on the need for changes to auditing and review engagement standards. Projects Related to the Adoption of International Standards on Auditing The AASB discussed issues relating to the IAASB’s final approval of the following ISAs: | — | ISA 250, The Auditor’s Responsibilities Relating to Laws and Regulations in an Audit of Financial Statements | | — | ISA 320, Materiality in Planning and Performing an Audit | | — | ISA 450, Evaluation of Misstatements Identified During the Audit | | — | ISA 510, Initial Audit Engagements – Opening Balances | | — | ISA 550, Related Parties | | — | ISA 570, Going Concern | | — | ISA 610, The Auditor’s Consideration of the Internal Audit Function |
The AASB discussed issues relating to revised drafts of the following ISAs:
| — | ISA 200, Overall Objectives of the Independent Auditor, and the Conduct of an Audit in Accordance with ISAs | | — | ISA 500, Considering the Relevance and Reliability of Audit Evidence | | — | ISA 530, Audit Sampling |
The AASB discussed issues relating to the IAASB’s final approval of the IAASB 2009-11 Strategy.
The AASB discussed issues relating to the IAASB’s proposal to develop International Standard on Assurance Engagements ((ISAEs) relating to information in prospectuses. The AASB requested staff to monitor this project and inform the AASB of matters of possible relevance in Canada. |