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Status: Canadian Auditing Standards (CAS 705) 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 reservations in the auditor’s report, and other reporting matters, with the equivalent International Standards on Auditing. Scope This project proposes to replace Section 5510, Reservations in the Auditor’s Report, and Section 5701, Other Reporting Matters, with a new Canadian Auditing Standard (CAS) that essentially adopts the revised and clarified International Standards on Auditing 705, Modifications to the Opinion in the Independent Auditor’s Report (ISA 705), and 706, Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor’s Report (ISA 706) that are currently being developed by the International Auditing and Assurance Standards Board (IAASB). The Canadian standards that will be the outcome of this project will have new numbers and titles that are the same as ISAs 705 and 706 — i.e., Canadian Auditing Standard 705, Modifications to the Opinion in the Independent Auditor’s Report (CAS 705) and Canadian Auditing Standard 706, Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor’s Report (CAS 706). Background The AASB’s intention to replace Sections 5510 and 5701 with revised and clarified ISAs 705 and 706, which are 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 revise and clarify ISAs 705 and 706. The AASB and staff also provide comments on the IAASB’s exposure drafts, 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 drafts 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 705 and 706, the IAASB is seeking to codify improved practices that have developed since ISA 705 and 706 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 International Standard on Auditing 705, Modifications to the Opinion in the Independent Auditor’s Report (ISA 705), and 706, Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor’s Report, were discussed at the following IAASB meetings:
- June 16-20, 2008
- July 9 - 13, 2007
- February 13 - 16, 2007
- July 10 - 13, 2006
- May 22 - 26, 2006
- March 6 - 10, 2006
- March 7 - 11, 2005
- December 6 - 10, 2004
- September 13 - 17, 2004
- April 19 - 22, 2004
Further Information Staff contact: Eric Turner, CA
Telephone no.: +1 (416) 204 3240 |
