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Status: Canadian Auditing Standards (CAS 320) and Canadian Auditing Standard (CAS 450) 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 concept of materiality and its application during an audit of financial statements or other financial information with the equivalent International Standards on Auditing. Scope This project proposes to replace Section 5142, Materiality, with two new Canadian Auditing Standards (CASs) that essentially adopt the clarified International Standards on Auditing, Materiality in Planning and Performing an Audit (ISA 320) and Evaluation of Misstatements Identified During the Audit (ISA 450), that are currently being developed by the International Auditing and Assurance Standards Board (IAASB). An earlier project to revise Section 5142, Materiality, and Assurance and Related Services Guideline AuG-41, Applying the concept of Materiality, has now been terminated. The Canadian standards that will be the outcome of this project will have new numbers and titles that are the same as the corresponding ISAs — i.e., Canadian Auditing Standard 320, Materiality in Planning and Performing an Audit (ISA 320) and Canadian Auditing Standard 450, Evaluation of Misstatements Identified during the Audit (ISA 450). Background The AASB’s intention to replace Section 5142 with clarified ISA 320 and ISA 450, which are 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 projects to revise and clarify ISAs 320 and 450. The AASB and staff also provide comments on the IAASB’s exposure draft, and consider whether any amendments to the ISAs are needed in light of specific Canadian circumstances. Any amendments made to the ISAs 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 ISAs 320 and 450, the IAASB is seeking to codify improved practices that have developed since ISA 320, Audit Materiality, was last revised. Further information on the IAASB’s projects 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 revision and clarification of ISA 320, Audit Materiality, and the development of ISA 450, Evaluation of Misstatements Identified During the Audit, were discussed at the following IAASB meetings:
- June 16-20, 2008
- March 10-14, 2008
- October 25-27, 2006
- July 10-13, 2006
- May 22-26, 2006
- December 5-9, 2005
- October 19-21, 2005
- December 6-10, 2004
- September 13-17, 2004
- June 14-17, 2004
- April 19-22, 2004
- July 21-25, 2003
- May 11-13, 2003
- December 8-13, 2002
Further Information Staff contact: Svetlana Berger, CA
Telephone no.: +1 (416) 204 3231 |
