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Status: Canadian Auditing Standards (CAS 220) and CSQC1 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 quality control policies and procedures to be established by the firm, and on the specific quality control procedures to be performed by the practitioner and other members of the assurance team in an assurance engagement with the equivalent International Standard on Quality Control (ISQC) and International Standard on Auditing (ISA). Scope This project proposes to replace GSF-QC, General Standards of Quality Control for Firms that Perform Assurance Engagements, and Section 5030, Quality Control Procedures for Assurance Engagements, with a new Canadian Standard on Quality Control (CSQC) and Canadian Auditing Standard (CAS) that essentially adopts the clarified International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements (ISQC 1), and International Standard on Auditing 220, Quality Control for an Audit of Financial Statements (ISA 220), 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 ISQC 1 and ISA 220 — i.e., Canadian Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and Canadian Auditing Standard 220, Quality Control for an Audit of Financial Statements (CAS 220). As a result of this project, a subsequent project will be undertaken to replace requirements and guidance in current Section 5030 that deal with assurance engagements other than audits of financial statements. Background The AASB’s intention to replace GSF-QC and Section 5030 with clarified ISQC 1 and ISA 220, 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 clarify ISQC 1 and ISA 220. The AASB and staff also provide comments on the IAASB’s exposure draft and consider whether any amendments to the ISQC and ISA are needed in light of specific Canadian circumstances. Any amendments made to the ISQC and 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 ISQC 1 and ISA 220, the IAASB is seeking to redraft existing ISA 220 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 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 clarification of ISQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and ISA 220, Quality Control for an Audit of Financial Statements, were discussed at the following IAASB meetings:
- September 15-19, 2008
- June 16-20, 2008
- July 9-13, 2007
- April 16-20, 2007
- December 4-8, 2006
Further Information Staff contact: Chi Ho Ng, CA
Telephone no.: +1 (416) 204 3443 |
