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. |
Reporting on Controls at a Service Organization The AASB reviewed comments received on the Exposure Draft of a proposed Canadian Standard for Assurance Engagements (CSAE), Reporting on Controls at a Service Organization. The AASB also noted that the American Institute of Certified Public Accountants had finalized its Statement of Standards for Attestation Engagements (SSAE) 16, Reporting on Controls at a Service Organization. Changes were made to the wording of the ED to align it with the final wording of SSAE 16 and were not significant. The AASB approved CSAE 3416, Reporting on Controls at a Service Organization. CSAE 3416 will be issued following confirmation by the Auditing and Assurance Oversight Council (AASOC) that due process was followed. Dating of the Practitioner’s Report for Review and Other Assurance Engagements - The AASB reviewed comments received on the Exposure Draft to address matters relating to the dating of the practitioner’s report for:
- a new Assurance and Related Services Guideline, Dating of the Review Engagement Review; and
- limited scope revisions to certain standards for assurance engagements, applicable Guidelines, CSQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements, and the Preface to the CICA Handbook – Assurance.
The AASB did not approve the Guideline as matters were identified that require further consideration at a future meeting. The limited scope revisions relate to eliminating the concept of “substantial completion” used in dating practitioners’ reports to align with the Canadian Auditing Standards. The AASB approved these revisions, with one minor change. The revisions will be issued following confirmation by the AASOC that due process was followed. Assurance on a Greenhouse Gas Statement The AASB approved a project proposal to develop a CSAE, Assurance on a Greenhouse Gas Statement. In developing the CSAE, the AASB will monitor the IAASB’s progress in its project to develop International Standard for Assurance Engagements (ISAE) 3410, Assurance on a Greenhouse Gas Statement, and will decide at an appropriate time whether to adopt the ISAE 3410, or develop a CSAE that may be based on ISAE 3410 but amended to address circumstances particular to the Canadian environment. Compilation Engagements The AASB reviewed issues related to the IAASB’s project to revise International Standard on Related Services (ISRS) 4410, Engagements to Compile Financial Statements. The AASB also reviewed a Project Approach Approval Document that set out matters to consider in determining whether the AASB should undertake a project to revise Section 9200, Compilation Engagements. The AASB concluded that staff should consult with stakeholders to obtain further information before the AASB decides whether to undertake this project. Assurance and Related Services Guidelines The AASB noted that the IAASB is reconsidering the status, scope and authority of its International Auditing Practice Statements (IAPSs), including withdrawal of all existing IAPSs, since they are largely out of date. The AASB performed a preliminary review of these matters regarding its Guidelines, including possible withdrawal of Guidelines adopted from the IAPSs. The AASB also considered matters relating to adopting future IAPSs, including, for example, proposed IAPS 1012, Auditing Complex Financial Instruments. The AASB determined that final decisions regarding these matters should be deferred pending the outcome of the IAASB’s deliberations. Assurance Implications of Changeover to IFRSs The Chair of the Assurance Implications of Changeover to IFRSs Task Force gave a presentation to the AASB regarding the nature and extent of work that would be undertaken by a newly appointed successor auditor to deal with the first-time transition of an entity to IFRSs. The AASB reviewed an issues paper and a draft Question and Answer dealing with this matter and provided input to the task force. Audit Reporting Implications of the New Canadian Auditing Standards The AASB discussed whether non-authoritative guidance should be provided on the wording of the auditor’s report on the financial statements regarding when an entity that is making the transition to a new financial reporting framework set out in the CICA Handbook – Accounting, and when the auditor is required, under legislation or regulation, to make specific reference to Canadian GAAP. The AASB concluded that such guidance is warranted and provided input to assist the Audit Reporting Implications of the New CASs Task Force in developing a Question and Answer that deals with this matter. Discussion of Matters Related to IAASB Projects - The AASB reviewed analyses of issues and draft standards to be discussed by the IAASB at its June 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
- 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 3410, Assurance on a Greenhouse Gas Statement
- Status and Authority of International Auditing Practice Statements (IAPSs)
- IAPS 1012, Auditing Complex Financial Instruments
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