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. |
Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents The AASB reviewed responses to the proposal in the Canadian Exposure Draft to revise existing Section 7500, Auditor Association with Annual Reports, Interim Reports and Other Public Documents, and reviewed and approved the final standard and corresponding conforming changes. Revisions in the Short Term to Standards for Assurance Engagements The AASB discussed issues related to making revisions to Sections 5025, Standards for Assurance Engagements, 5030, Quality Control Procedures for Assurance Engagements, 5049, Use of Specialists in Assurance Engagements, and 5050, Using the Work of Internal Audit that the AASB had identified as possibly needing to made in the short term. The AASB decided to amend the assurance standards (other than standards relating to reviews) to replace the concept of “substantial completion” used in dating practitioners’ reports with the concept of that practitioner must have obtained sufficient appropriate evidence before dating his or her report. This latter concept is used in Canadian Auditing Standards (CASs). Amendment wording will be considered by AASB at a future meeting. The AASB considered replacing the term “specialist” with “expert” throughout the assurance standards. The term “expert” is used in the CASs. It was decided that, in some cases, simply replacing terminology could make guidance unclear. It was decided that this matter would be better addressed as part of AASB’s longer term project to revise assurance standards. Assurance Reports on Controls at a Third Party Service Organization The AASB reviewed the IAASB’s draft of proposed final International Standard on Assurance Engagement (ISAE) 3402, Assurance Reports on Controls at a Third Party Service Organization. The AASB also approved the project proposal to develop a Canadian assurance standard based on the AICPA Auditing Standards Board’s proposed new Statement on Standards for Assurance Engagements (SSAE), Reporting on Controls at a Service Organization, and discussed issues associated with developing the Canadian assurance standard. ISRE 2400 The AASB discussed issues related to the IAASB’s project on International Standard on Review Engagements (ISRE) 2400, Engagements to Review Financial Statement, and the implications for the AASB’s project to revise standards for review engagements. ISAE 3410 The AASB reviewed the draft IAASB Exposure Draft (ED) for ISAE 3410, Assurance on a Greenhouse Gas Statement and discussed the issues raised by the IAASB Task Force. Further, the AASB discussed the project proposal to adopt ISAE 3410, Assurance on a Greenhouse Gas Statement in Canada. The AASB asked staff to clarify certain matters in the project proposal and bring it back for review and approval by the AASB at its next meeting. Joint Policy Statement– Communications with Law Firms The AASB reviewed and approved the project proposal to revise the Joint Policy Statement with the Canadian Bar Association concerning “Communications with Law Firms Regarding Claims and Possible Claims.” AASB Operations Planning 20010-2011 The AASB reviewed the projected work activities for 2010-2011 based on the AASB’s existing strategic plan. Other IAASB Projects Guidance on Auditing Complex Financial Instruments The AASB discussed issues related to the IAASB’s project to develop guidance on auditing complex financial instruments, including revising International Auditing Practice Statement (IAPS) 1012, Auditing Derivative Financial Instruments and the implications for related Canadian guidance in AuG-39, Auditing Derivative Financial Instruments. Pro Forma Financial Information The AASB discussed issues related to the IAASB’s project on Pro Forma Financial Information Included in Prospectuses. Using the Work of Internal Auditors The AASB discussed issues related to the IAASB’s project to revise International Standard on Auditing (ISA) 610, Using the Work of Internal Auditors. Following its due process, AASB will make revisions to CAS 610 to correspond to those in ISA 610 except for Canadian amendments, if any, that might be required. Extensible Business Reporting Language (XBRL) Audit Issues The AASB discussed issues related to the IAASB’s project on assurance matters related to XBRL. |