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 voting process.
For more detailed information about AASB projects, please refer to the project summaries under Projects. |
International Auditing Practice Statements, International Auditing Practice Notes and Canadian Guidelines The AASB discussed matters related to the IAASB project addressing the status and authority of IAPSs and IAPNs, including possible adoption of future IAPNs in Canada, and how these might be made available to users (for example, in the Handbook or elsewhere). The AASB also confirmed its earlier decision to continue to have Canadian Guidelines in the Handbook. The AASB will decide at a future meeting whether revisions to the status and authority of such Canadian Guidelines are necessary, and how that status and authority might be more clearly described. Any proposed revisions would be exposed for comment following the AASB’s due process. Guidance on Auditing Complex Financial Instruments The AASB discussed matters related to the IAASB’s project to develop proposed IAPN 1000, Special Considerations for Auditing Complex Financial Instruments. Using the Work of Internal Auditors The AASB discussed matters related to the IAASB project to revise ISA 610, Using the Work of Internal Auditors, and related proposed changes to certain paragraphs in ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment. Compilation Engagements The AASB discussed matters related to the IAASB’s project to revise ISRS 4410, Compilation Engagements. The AASB also approved a project proposal to revise Section 9200, Compilation Engagements. Initially, this project will focus on conducting research to obtain the views of users of compiled financial statements on whether their needs are being met. Enhancing the Value of Auditor Reporting The AASB reviewed comments received from Canadian stakeholders on the Invitation to Comment on the IAASB’s Consultation Paper, “Enhancing the Value of Auditor Reporting: Exploring Options for Change,” and discussed a draft response letter to the IAASB’s Consultation Paper. Responsibility in Relation to Other Information The AASB discussed matters related to the IAASB’s proposed exposure draft of revisions to ISA 720, The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements. Other IAASB projects - The AASB discussed issues related to the following matters being discussed by the IAASB in September 2011:
- ISAE 3420, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus;
- audit quality;
- ISA implementation monitoring; and
- IAASB strategy and work program 2012-2014.
- 7000 Series
The AASB approved the following revisions to the 7000 series of Handbook Sections (i.e., Sections dealing with capital markets and securities regulations): - changes to Section 7200, Auditor Assistance to Underwriters and Others, and conforming changes to Section 7110, Auditor Involvement with Offering Documents of Public and Private Entities, to reflect changes to Canadian securities regulations; and
- changes to Section 7110, Auditor Involvement with Offering Documents of Public and Private Entities, Section 7115, Auditor Involvement with Offering Documents of Public and Private Entities — Current Legislative and Regulatory Requirements, and Assurance and Related Services Guideline AuG-30, The Auditor’s Consent and Comfort in Connection with Securities Offering Documents, to remove information that is outdated as a result of changes in Canadian securities regulations.
The final drafts of the standards contained some wording changes from the material that has been publicly exposed. The AASB concluded that these changes were not significant and, therefore, no re-exposure was necessary. The AASB also approved conforming amendments to Section 7110 arising from changes to Section 7050, Auditor Review of Interim Financial Statements, approved by the AASB in April 2010. The AASB concluded that exposure was not warranted as the change is a conforming amendment arising from changes previously approved by the AASB. The AASB also discussed possible improvements to Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents. AASB Operations Planning 2012-2013 The AASB discussed the projected work activities for 2012-2013. Summarized Financial Statements The AASB discussed issues related to auditor’s reports on summarized financial statements raised by the Task Force on Audit Reporting Implications of New CASs. Standards for Engagement Quality Control Reviews The AASB discussed matters related to standards for engagement quality control reviews raised in Canadian Public Accountability Board’s “Report on the 2010 Inspections of the Quality of Audits Conducted by Public Accounting Firms.” Challenges in Auditing Companies with Operations in Foreign Countries The AASB discussed how legal and cultural differences in foreign countries may present difficulties for Canadian auditors in obtaining sufficient appropriate audit evidence. The AASB asked staff to develop communications to increase awareness of these matters. |
