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Chartered Accountants of Canada Auditing and Assurance Standards Board / Conseil des normes de vérification et de certification

Auditing and Assurance Standards Board
Decision Summary
January 16-17, 2012

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.

 

Other Reporting Where No Assurance Is Provided

The AASB discussed issues related to the development of a new Related Services Standard dealing with circumstances when:

  • the public accountant provides audits or reviews of the financial statements of an entity;
  • the public accountant is asked, or is required by law or regulation, to report to a third party matters that have come to the public accountant’s attention in performing the assurance engagement;
  • the public accountant has not been engaged to, and is not  providing, assurance on such matters; and
  • reporting on these matters is not covered by other standards or guidance in the Handbook.  

The next stage of this project will involve consultations with key stakeholders.

Strengthening the Audit Environment in Canada in the Context of Global Developments

The AASB discussed a variety of significant global initiatives dealing with matters such as auditor reporting, audit quality and the role of the auditor, and the possible effects of these initiatives on activities of the AASB. In particular, the AASB discussed the recent decision by the IAASB to undertake, on a priority basis, a project on auditor’s reports. The objectives of this project are to:

  • enhance the communicative value and relevance of auditor reporting to users of audited financial statements;
  • explore ways in which auditor reporting could accommodate evolving national financial reporting regimes; and
  • facilitate enhanced approaches in corporate financial reporting, while at the same time ensuring that common and essential content is communicated.

The AASB agreed that it will undertake a project to consider, from a Canadian perspective, key issues related to auditor’s reports being addressed by the IAASB, and keep pace with the IAASB project.  

Assurance Engagements

The AASB discussed issues related to the IAASB’s project to revise ISAE 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, including that project’s relationship to the AASB’ project to revise Section 5025, Standards for Assurance Engagements Other than Audits of Financial Statements and Other Historical Financial Information. Possible next steps and priorities in Canada were discussed.

Operations Planning

The AASB discussed a draft AASB operating plan for the period 2012-2013. The AASB provided input that staff will use to prepare a proposed final plan for presentation to AASOC at its next meeting.

Association

The AASB approved a project proposal to redraft in the clarity format and, if appropriate, revise Section 5020, Association.

Review Engagements

The AASB discussed issues related to the IAASB’s project to revise ISRE 2400, Engagements to Review Historical Financial Statements, and the AASB’s project to revise Canadian review engagement standards.

Prospective Financial Information

The AASB approved a project proposal to develop a new Canadian standard or other authoritative guidance for engagements dealing with prospective financial information.  The standard or guidance will update or replace Assurance and Related Services Guidelines AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, and AuG-16, Compilation of a Financial Forecast or Projection.

Other

The AASB discussed actions it will take to obtain input to respond to the IAASB’s “Plan for Post Implementation Review of the Clarified International Standards on Auditing.” The AASB approved the issuance of an invitation to comment on the IAASB’s plan. The invitation to comment is expected to be issued in February 2012 with a response deadline of September 7, 2012.

The AASB also discussed various matters related to improving its communications with stakeholders.