|
Status: Canadian Auditing Standard (CAS) 265 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 adopt expanded guidance being developed by the International Auditing and Assurance Standards Board (IAASB) on the meaning of material weaknesses in internal control and the auditor's responsibilities to identify and communicate internal control issues to management and those charged with governance. Scope This project proposes to develop a new Canadian Auditing Standard (CAS) that essentially adopts a new International Standard on Auditing, Communicating Deficiencies in Internal Control (the former working title was Material Weaknesses in Internal Control), 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 number and title that are the same as the international standard. Background The AASB’s intention to adopt the new ISA, Communicating Deficiencies in Internal Control, which is currently being developed by the IAASB, is in keeping with the AASB’s decision to adopt ISAs. The AASB and staff monitor, review and provide feedback on the IAASB agenda papers and discussions relevant to its project to develop the new ISA. 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 developing the new ISA, the IAASB is seeking to provide expanded guidance on:
- the meaning of control deficiencies and material weaknesses in internal control;
- the auditor's evaluation of control deficiencies and material weaknesses in internal control noted during an ISA audit;
- the auditor's reporting on such matters to management and those charged with governance; and
- nature and extent of additional guidance considered appropriate.
Further information on the IAASB’s project is available on the IAASB project summary. IAASB Discussions to Date Background papers that are the basis of the IAASB’s 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 development of the new ISA, Communicating Deficiencies in Internal Control, were discussed at the following IAASB meetings:
- December 8-12, 2008
- September 15-19, 2008
- December 10-14, 2007
- September 24-28, 2007
- April 16-20, 2007
- October 25-27, 2006
- July 10-13, 2006
- October 19-21, 2005
Further Information Staff contact: Mary Olynik, CA
Telephone no.: +1 (416) 204 3312 |
