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Status: Canadian Auditing Standard (CAS) 402 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 the factors that an auditor considers when auditing the financial statements of an entity that uses a service organization to process certain transactions with the equivalent International Standard on Auditing (ISA). Scope This project proposes to replace Section 5310, Audit Evidence Considerations When an Entity Uses a Service Organization, with a new Canadian Auditing Standard (CAS) that essentially adopts the revised and clarified International Standard on Auditing 402, Audit Considerations Relating to an Entity Using a Third Party Service Organization (ISA 402), 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 402 — i.e., Canadian Auditing Standard 402, Audit Considerations Relating to an Entity Using a Third Party Service Organization (CAS 402). Background The AASB’s intention to replace Section 5310 with revised and clarified ISA 402, 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 402. 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 revising and clarifying existing ISA 402, the IAASB is seeking to codify improved practices that have developed since ISA 402 was last revised. 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 revision and clarification of ISA 402, Audit Considerations Relating to an Entity Using a Third Party Service Organization, were discussed at the following IAASB meeting:
- December 8-12, 2008
- September 15-19, 2008
- December 10-14, 2007
- September 24-28, 2007
- April 16-20, 2007
- September 18-22, 2006
- March 6-10, 2006
Further Information Staff contact: Mary Olynik, CA
Telephone no.: 1 (416) 204 3312 |
