| The summary of Auditing and Assurance Standards Board (AASB) projects has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further deliberations by the AASB. Decisions to publish Handbook material are final only after a formal voting process. |
Status: Final standard approved. Objective and Scope
Background
Issues
Activities to Date
Comments Received on Exposure Draft
Contact Information Objective and Scope This project proposes to change the purpose and scope of extant Section 7500, Auditor Association with Annual Reports, Interim Reports and Other Public Documents, by redrafting Section 7500 to focus on the auditor’s responsibilities, after the completion of the audit of the entity’s financial statements, when the auditor agrees to consent to the use of the auditor’s report in connection with designated documents. These changes are needed to clearly distinguish Section 7500 from Canadian Auditing Standard 720, The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements (CAS 720). The anticipated outcome is Section 7500 (Redrafted), Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents. Background The AASB has adopted International Standard on Auditing 720, The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements (ISA 720), as CAS 720 without amendment. Respondents to the Exposure Draft for CAS 720 suggested that the material in extant Section 7500 be retained in some form in the CICA Handbook – Assurance. The AASB concluded that all material required to perform a financial statement audit should be contained in the CASs and that Section 7500 should be clearly distinct from CAS 720. Therefore, the AASB decided to change the purpose and scope of Section 7500. The AASB also decided to incorporate into Section 7500 key aspects of the guidance currently contained in Assurance and Related Services Guideline AuG-44, The Auditor's Written Consent to the Use of the Audit Report in a Continuous Disclosure Document, and delete that guideline. Issues - Key issues that this project is addressing include:
- Purpose and scope of Section 7500 (Redrafted): Under what circumstances would an auditor refer to Section 7500 (Redrafted)? What documents should be covered under Section 7500 (Redrafted)?
- Annual Information Form: What are the auditor’s responsibilities with respect to the Annual Information Form?
- Additional requirements and application and explanatory material: What guidance material in extant Section 7500 and AuG-44, if any, should be elevated to requirements under Section 7500 (Redrafted)?
- Requirements and guidance related to translation: Should the requirements and guidance set out in extant paragraphs 7500.37-.40 be incorporated into Section 5020, Association, since the requirements and guidance on translation applies to a wider range of documents than the proposed scope of Section 7500 (Redrafted)?
Activities to Date In September 2009, the AASB approved the final standard. In March 2009, the AASB reviewed and approved the Exposure Draft. In October 2008, the AASB reviewed and approved a project proposal to redraft Section 7500. - Responses to the AASB on its Exposure Draft are available here.
Contact Information
Staff contact: Chi Ho Ng, CA
Phone no.: +1 (416) 204-3443 |
