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Status: Canadian Auditing Standards (CAS 550) 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 how the auditor reduces to an acceptably low level the risk of not identifying a material misstatement in financial statements arising from related party transactions with the equivalent International Standard on Auditing (ISA). Scope This project proposes to replace Section 6010, Audit of Related Party Transactions, with a new Canadian Auditing Standard (CAS) that essentially adopts the revised and clarified International Standard on Auditing 550, Related Parties (ISA 550), 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 550 — i.e., Canadian Auditing Standard 550, Related Parties (CAS 550). Background The AASB’s intention to replace Section 6010 with revised and clarified ISA 550, 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 revise and clarify ISA 550. The AASB and staff also provide comments on the IAASB’s exposure drafts, 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 550, the IAASB is seeking to codify improved practices that have developed since ISA 550 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 550, Related Parties (ISA 550), were discussed at the following IAASB meetings:
- March 10-14, 2008
- February 13-16, 2007
- December 4–8, 2006
- September 18–22, 2006
- December 5–9, 2005
- September 12–16, 2005
- June 13–17, 2005
- March 7–11, 2005
Further Information Staff contact: Chi Ho Ng, CA
Telephone no.: +1 (416) 204 3443 |
