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Status: Canadian Auditing Standards (CAS) 210 approved. Objectives of this Project
Scope
Background
Issues
IAASB Discussions to Date
Canadian Developments
Further Information Objectives of this Project The objective of this project is to replace existing Canadian standards and guidance on establishing an understanding of, and agreement on, the terms of the engagement for the audit of financial statements with the equivalent International Standard on Auditing (ISA). Scope This project proposes to replace Section 5110, Terms of the Engagement, with a new Canadian Auditing Standard (CAS) that essentially adopts the clarified International Standard on Auditing 210, Agreeing the Terms of Audit Engagements (ISA 210), 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 210 — i.e., Canadian Auditing Standard 210, Agreeing the Terms of Audit Engagements (CAS 210). Background The AASB’s intention to replace Section 5110 with clarified ISA 210, 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 clarify ISA 210. 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 clarifying existing ISA 210, the IAASB is seeking to redraft existing ISA 210 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 ISA 210, Agreeing the Terms of Audit Engagements, were discussed at the following IAASB meetings:
- December 8-12, 2008
- September 15-19, 2008
- December 10-14, 2007
- September 24-28, 2007
- July 9-13, 2007
- April 16-20, 2007
The IAASB approved the final ISA 210 in February 2009.
Canadian Developments In February 2009, a Re-exposure Draft was issued by the AASB for comment by April 15, 2009. - In meetings held between October 2008 and January 2009, the AASB held further discussions relating to the proposed amendments to the requirements in ISA 210. Based on these discussions, the AASB has decided:
- subject to comments received on re-exposure, not to require the addition of an “Other Matter” paragraph to the auditor’s report, as proposed in the February 2008 ED;
- subject to comments received on re-exposure, to supplement the application material in paragraph A8 of ISA 210; and
- not to delete references to “give a true and fair view”.
In April 2008, the AASB discussed comments received on the February 2008 ED and submitted a comment letter on the IAASB’s proposed ISA 210 on April 15, 2008. - In February 2008, the AASB issued an Exposure Draft of proposed CAS 210 (February 2008 ED), for comment by March 24, 2008. In the February 2008 ED, the AASB proposed to adopt, with appropriate amendments, if any, ISA 210 for use in Canada. The February 2008 ED contained two proposed amendments to the requirements in ISA 210, as follows:
- delete reference to the optional phrase “give a true and fair view” in the wording of the auditor’s report and when describing the responsibility of management for the preparation of the financial statements; and
- add a new requirement for the auditor’s report to incorporate an Other Matter paragraph in certain circumstances.
Further Information Staff contact: Svetlana Berger, CA
Telephone no.: +1 (416) 204 3231 |
