|
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. |
Effective Date for the Initial Adoption of Canadian Auditing Standards (CASs) clarified Audits of financial statements for years ending on or after the effective date of December 14, 2010, must follow the new Canadian Auditing Standards (CASs). Stating the effective date with reference to years ending on or after December 14, 2010 (rather than for periods beginning on or after December 15, 2009, as previously communicated) is a clarification that does not change the effective date of the initial adoption of International Standards of Auditing (ISA) as CASs for full years. The impact of the clarification is on audits of periods of less than a year. All audits of financial statements for periods ending before December 14, 2010 should be performed in accordance with existing generally accepted auditing standards (GAAS). Accordingly, for example, an audit of financial statements for the three-month period January 1 to March 31, 2010 would be performed using existing GAAS. The AASB reaffirmed its position that early adoption of the CASs is not permitted. However, auditors are always permitted to perform procedures that exceed the requirements of GAAS if they desire to do so. Canadian-Specific Projects Projects to develop material that will be included in the Handbook that takes effect for periods ended December 14, 2010 - Preface to CICA Handbook – Assurance
- The AASB discussed issues related to finalizing the Preface.
- 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 discussed issues related to the nature and extent of changes to various Sections of the Handbook, including matters such as cross references, scope and consistency in terminology, that will be required as a result of adopting the ISAs as CASs.
Other - AASB’s Terms of Reference
- The AASB reviewed its terms of reference.
- Due Process
- The AASB reviewed and approved changes to the description of its due process for developing and approving standards.
- Audit Implications of Transition to IFRS (AITI)
- The AASB discussed issues related to the audit implications of Canadian entities adopting International Financial Reporting Standards (IFRSs). Material addressing these issues will be set out in non-authoritative guidance.
- Independence
- The AASB was provided with an overview of activities of the Task Force of the CA profession’s Public Trust Committee dealing with matters related to the independence of public accountants.
Projects Related to the Adoption of International Standards on Auditing The AASB reviewed and approved the following final Handbook material: | — | CAS 265, Communicating Deficiencies in Internal Control | | — | CAS 402, Audit Considerations Relating to an Entity Using a Third Party Service Organization |
The AASB reviewed and approved minor changes to the following final Handbook material resulting from changes made to the related ISAs made by the IAASB at its December 2008 meeting:
| — | CAS 250, Consideration of Laws and Regulations in an Audit of Financial Statements | | — | CAS 220, Quality Control for an Audit of Financial Statements | | — | CAS 620, Using the Work of an Auditor’s Expert |
The AASB reviewed a proposed final draft of CAS 210, Agreeing the Terms of Audit Engagements. The AASB decided that, subject to further stakeholder input, it would be appropriate to adopt ISA 210 as approved by the IAASB at its December meeting, except that:
| — | an addition would be made to application material dealing with matters relevant in Canada to determining the acceptability of a financial reporting framework; and | | — | the CAS would not require that an “Other Matters” paragraph be added to the auditors report when an entity prepares general purpose financial statements using an acceptable financial reporting framework other than established generally accepted accounting principles. |
The above matters represent significant changes from the Exposure Draft of CAS 210 issued in February 2008. Therefore, the AASB decided that staff should prepare a re-exposure draft dealing with these matters for approval by the AASB at its next meeting in February 2009.
|