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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 Handbook that takes effect for periods ending on or after December 14, 2010 Preface to CICA Handbook – Assurance
The AASB reviewed and discussed the proposed final Handbook material. The AASB suggested a number of changes. Once the applicable changes have been made, the final Handbook material will be will be submitted to the AASB for approval by written ballot. - Changes to Various Sections of the CICA Handbook – Assurance Resulting from the Adoption of International Standards on Auditing (ISAs) as Canadian Auditing Standards (CASs)
- The AASB reviewed and approved a change in scope to the following standards so that for periods ending on or after December 14, 2010, they will no longer apply to audits of financial statements and other historical financial information:
| — | 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 |
- The AASB reviewed and approved changes to Section 5925, An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements, to align its wording with that in relevant CASs.
- The AASB reviewed and approved changes related to eliminating cross-references from various Sections to existing auditing standards that will be deleted from the Handbook when the CASs come into effect.
Section 5020, Association
The AASB discussed various matters related to Section 5020, including its relationship to other standards in the Handbook and how this relationship should be described in the Preface. - Comparison of Section 5030 and CSQC 1
- The AASB reviewed and discussed differences between Section 5030, Quality Control Procedures for Assurance Engagements, and CAS 220, Quality Control for an Audit of Financial Statements, and related inconsistencies between Section 5030 and Canadian Standard on Quality Control (CSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements. The AASB decided that a future project should be undertaken to address the above-noted differences.
- The AASB approved certain changes made to the wording in CSQC 1 to clarify how it is to be used in the context of the CICA Handbook – Assurance.
Section 7500, Auditor Association with Annual Reports, Interim Reports and Other Public Documents
The AASB reviewed and discussed a proposed Exposure Draft to revise the scope and specific aspects of the content of Section 7500. The Exposure Draft will be submitted to the AASB for approval by written ballot. Other Operations Planning 2009-2010
The AASB discussed issues relating to the further development of the Handbook. Small and Medium-sized Practice (SMP) Committee
The AASB discussed matters related to the possible formation of an SMP committee. Further discussion of the role and composition of an SMP committee will be discussed at a future meeting. Projects Related to the Adoption of International Standards on Auditing The AASB discussed matters related to the project proposal to revise ISA 610, Using the Work of Internal Auditors. Projects Related to other IAASB Matters - The AASB discussed matters related to the following:
- impact assessments;
- implementation guidance; and
- post-implementation effectiveness review.
- The AASB discussed matters related to the following International Auditing and Assurance Standards Board (IAASB) project proposals:
- International Standards on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements, and ISRE 4410, Engagements to Compile Financial Statements;
- International Standards on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical Financial Information; and
- dealing with eXtensible Business Reporting Language (XBRL).
- The AASB discussed matters related to:
- development of an ISAE for reporting on pro forma financial information in prospectuses; and
- the IAASB’s fair value auditing guidance task force update.
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