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 and other matters, 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. |
AASB Strategic Plan 2010-2013 The AASB decided, subject to a final review of agreed changes, to issue a draft Strategic Plan for 2010-13 to invite comments from Canadian stakeholders. The Plan proposes two long-term goals considered critical to the achievement of the AASB’s mission: | (a) | to set high-quality standards and guidelines that meet the needs of Canadian stakeholders; and | | (b) | to maintain a strong Canadian standard-setting capability to respond to the needs of Canadian stakeholders for standards. |
The plan also identifies four objectives for each goal and sets out performance measures to assess their achievement.
An Invitation to Comment is expected to be released by mid-April 2010 with comments requested by July 31, 2010. Assurance Engagements Other Than Audits or Reviews of Historical Financial Information The AASB reviewed the results of initial consultations with stakeholders to help determine the nature and extent of changes needed to the assurance standards to better meet stakeholder needs. These consultations are the first phase of the AASB’s project to revise assurance standards. Based on its key findings, the AASB decided to continue its project to revise the assurance engagement standards and take the findings into account as it monitors the IAASB’s project to revise International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The AASB will decide at an appropriate time in the future whether to adopt revised ISAE 3000 or issue a different assurance standard. Review Engagements The AASB reviewed the results of initial consultations with stakeholders to determine how the existing review engagement standards are being used in practice and what improvements are needed. This input will assist in determining the nature and extent of changes needed to the review engagement standards. Based on its key findings, the AASB decided to continue with the project to revise the review engagement standards and take the findings into account as it monitors the IAASB’s project to revise International Standards on Review Engagements (ISRE) 2400, Engagements to Review Financial Statements. The AASB will decide at an appropriate time in the future whether to adopt revised ISRE 2400 or develop and issue a different standard for reviews of financial statements. Compilation Engagements The AASB reviewed initial input obtained from a limited group of stakeholders. It also reviewed an analysis comparing Section 9200, Compilation Engagements, with the American Institute of Certified Public Accountants’ Statement on Standards for Accounting and Review Services (SSARS) No. 19, Compilation and Review Engagements, and the direction of the IAASB in its revision of International Standard on Related Services (ISRS) 4410, Engagements to Compile Financial Statements, in order to identify issues and concerns relating to Section 9200. The AASB concluded that issues and concerns relating to Section 9200 could not be adequately addressed through non-authoritative guidance. Therefore, the AASB decided that staff should prepare a Project Approach Approval Document and present it at the AASB’s next meeting with a view to determining whether the AASB should undertake a project to revise Section 9200. Assurance and Related Services Guidelines The AASB considered on a preliminary basis, the status, scope and authority of Assurance and Related Services Guidelines. The AASB decided that a final decision should be deferred pending the outcome of the IAASB’s review of the status, scope and authority of International Auditing Practice Statements, which are equivalent to Guidelines. Communications with Law Firms The AASB reviewed a draft of an Assurance and Related Services Guideline that is intended to provide interim guidance for communications between auditors and law firms and identified matters to be considered in further developing this Guideline. A revised draft will be presented to the Board for approval once task force discussions with the Canadian Bar Association are concluded. Audit Reporting Implications of the new Canadian Auditing Standards The AASB approved the terms of reference for its Audit Reporting Implications of the New CASs (ARIC) Task Force. The AASB also received an update on the activities of this Task Force and provided input on matters raised. Discussion of Matters Related to IAASB Projects - The AASB reviewed analyses of issues and draft standards to be discussed by the IAASB at its March 2010 meeting and provided input for consideration by the IAASB member nominated by the CICA. The AASB’s discussions related to the following international standards in various stages of development:
- ISA 610, Using the Work of Internal Auditors
- ISA 720, Auditor’s Responsibility Relating to Other Information in Documents Containing Audited Financial Statements
- ISAE 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information
- ISRS 4410, Engagements to Compile Financial Statements
- ISRE 2400, Engagements to Review Financial Statements
- ISAE 3420, Assurance Reports on the Proper Compilation of Pro Forma Financial Information Included in Prospectuses
- International Auditing Practice Statements (IAPSs)
- IAPS 1012, Auditing Financial Instruments
- IAASB’s Strategy and Work Program, 2012-2014
Deferred Items - The AASB deferred discussion of the following matters:
- ISA Implementation monitoring
- National Standard Setters implementation guidance
- Assurance on a Greenhouse Gas Statement
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