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Status: Canadian Auditing Standards (CAS 501) approved. Objectives of this Project
Scope
Background
Issues
IAASB Discussions to Date
Further Information Objectives of this Project The objective of this project is to replace existing Canadian standards and guidance on audit procedures that auditors use for obtaining audit evidence, and which supplement proposed Canadian Auditing Standard, Considering the Relevance and Reliability of Audit Evidence (CAS 500), with the equivalent International Standard on Auditing. Scope This project proposes to replace Section 6030, Inventories, and Section 6560, Communications with Law Firms Regarding Claims and Possible Claims, with a new Canadian Auditing Standard that essentially adopts the clarified International Standard on Auditing 501, Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures (ISA 501), that is currently being developed by the International Auditing and Assurance Standards Board (IAASB). The Canadian standard that will be the outcome of this project will have a new number and title that are the same as ISA 501 — i.e., Canadian Auditing Standard 501, Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures (CAS 501). Background The AASB’s intention to replace Sections 6030 and 6560 with clarified ISA 501, which is currently being developed by the IAASB, is in keeping with the AASB’s decision to adopt International Standards on Auditing (ISAs). The AASB and staff monitor, review and provide feedback on the IAASB agenda papers and discussions relevant to its project to revise and clarify ISA 501. The AASB and staff also provide comments on the IAASB’s exposure draft, and consider whether any amendments to the ISA are needed in light of specific Canadian circumstances. Any amendments made to the ISA will be clearly highlighted and explained in the exposure draft and final Handbook material. To view the AASB’s guidelines for amending ISAs when proposing to adopt them as Canadian Auditing Standards, click here. Issues
In clarifying existing ISA 501, the IAASB is seeking to redraft existing ISA 501 in the new drafting convention with minimal revisions to the existing principles and guidance. Further information on the IAASB’s project to clarify ISAs without revising them is available on the IAASB project summary. IAASB Discussions to Date Background papers that are the basis of the International Auditing and Assurance Standards Board’s (IAASB) discussions, along with meeting summaries and audio recordings of the actual discussions, can be accessed on the IAASB’s website by clicking here and then on the date of the meeting at which matters pertaining to a project were discussed. - Matters pertaining to the clarification of International Standard on Auditing 501, Audit Evidence Regarding Specific Financial Statement Account Balances and Disclosures (ISA 501), were discussed at the following IAASB meeting:
- September 15-19, 2008
- December 10-14, 2007
Further Information Staff contact: Chi Ho Ng, CA
Telephone no.: +1 (416) 204 3443 |
