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Status: Canadian Auditing Standard (CAS 720) 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 auditor’s responsibilities with respect to documents that contain financial statements that the auditor has audited with the equivalent International Standard on Auditing (ISA). Scope This project proposes to replace the existing Canadian standards and guidance relating to documents containing audited financial statements, with a new Canadian Auditing Standard (CAS) that essentially adopts the clarified International Auditing Standard on Auditing 720, Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements (ISA 720), that is currently being developed by the International Auditing and Assurance Standards Board (IAASB). The proposed new standard would replace part of existing Section 7500, Auditor Association with Annual Reports, Interim Reports and Other Public Documents. The AASB is considering the disposition of the remaining standards and guidance in Section 7500. The Canadian standard that will be the outcome of this project will have a new number and title that are the same as ISA 720 — i.e., Canadian Auditing Standard 720, Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements (CAS 720). Background The AASB’s intention to adopt clarified ISA 720, 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 720. The AASB also provide comments on the IAASB’s exposure draft and consider whether any amendments to the proposed 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 720, the IAASB is seeking to redraft existing ISA 720 in the new drafting convention with minimal revisions to the existing principles and guidance. 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 clarification of ISA 720, Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements (ISA 720), were discussed at the following IAASB meetings:
- September 24-28, 2007
- December 4-8, 2006
- October 25-27, 2006
Further Information Staff contact: Chi Ho Ng, CA
Telephone no.: +1 (416) 204 3443
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