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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 Transition of Existing Standards and Guidance Other Than Canadian Auditing Standards to the Future Handbook
The AASB discussed issues relating to the overall nature, timing and extent of changes to standards (other than Canadian Auditing Standards (CASs)) that should be made in developing the Handbook that will come into effect on December 15, 2009. Standards for Assurance Engagements
The AASB discussed a preliminary list of issues dealing with the transition of Section 5025, Standards for Assurance Engagements, to the future Handbook. General Review Standards
The AASB discussed issues relating to the transition of Section 8100, General Review Standards, to the future Handbook. The AASB determined that these issues affect all of the review engagement standards in the 8000 series. The AASB decided that all of the existing review engagement standards will be carried forward to the future Handbook with minimal changes. A communication will be issued to indicate that there will initially be inconsistencies, in both form and content, between the review engagement standards and the CASs and that there will be a project undertaken to review and address these inconsistencies. Public Sector Standards
The AASB had a preliminary discussion of issues relating to the transition of these standards to the future Handbook. It was decided that these standards will be carried forward to the future Handbook with only minimal changes (for example, to ensure references to other standards remain appropriate). The AASB also decided that its list of future projects to update assurance standards will include a project to more specifically address the needs of public sector auditors.
Special Reports on Regulated Financial Institutions (AuG-13)
The AASB had a preliminary discussion of issues relating to the transition of this Guideline to the future Handbook. Special Reports and Audit Reports on Compliance with Agreements, Statutes and Regulations (5800 series)
The AASB had a preliminary discussion of issues relating to the transition of these standards to the future Handbook. Auditor’s Written Consent to the Use of the Audit Report in a Continuous Disclosure Document (AuG-44)
The AASB agreed to amend AuG-44 to include material in the Bulletin currently attached to it. The AASB requested that input be received from legal counsel on certain wording before AASB approves amendments to the Guideline. The AASB decided that the amended Guideline will not require exposure as there will be no change in expected work effort to comply with this Guideline. Auditor’s Discussion with Audit Committee and Management
The AASB reviewed a project proposal to develop guidance on informal communications between the auditor and those charged with governance of the audited entity. The AASB decided that this project should not be undertaken. Projects to develop material that will be included in the existing Handbook Assistance to Directors on Continuous Disclosure
The AASB decided that it should defer this project in the near term. Auditor Association with Annual Reports, Interim Reports and Other Public Documents (Section 7500)
The AASB discussed how Canadian securities regulations could affect the proposed wording in CAS 720, The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statement (being adopted from ISA 720). The AASB also discussed the relationship between CAS 720 and Section 7500. The AASB requested its Securities Regulation Advisory Group to review these matters and present their recommendations at a future AASB meeting. Other CICA’s Proposed New Accounting Framework for Owner-Managed Enterprises
The AASB discussed a number of issues relating to whether the AASB should develop new or amended auditing and review engagement standards to deal with reports by public accountants on financial statements prepared in accordance with this proposed new financial reporting framework, which is still in the process of being developed by the CICA. The AASB decided that it should await additional information regarding the development of this framework before deciding on this matter. Projects Related to the Adoption of International Standards on Auditing The AASB reviewed comments received on its Exposure Drafts of the following proposed Canadian Auditing Standards:
– CAS 505, External Confirmations
– CAS 620, Using the Work of an Auditor’s Expert The AASB also reviewed and provided comments on draft letters the AASB is sending to the IAASB in response to its Exposure Drafts of ISAs 505 and 620. |
