Public Sector Auditing Standards

Current Status Next Steps

Exposure draft being developed.

First quarter of 2017 – Exposure draft to be approved.

OBJECTIVE AND SCOPE OF THIS PROJECT

The objective of this project is to update the Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities.

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Public sector auditing standards are used by legislative and other external auditors in their audits of public sector entities.

This project will address key issues including:

  • considering whether other standards or guidance is needed;
  • updating the public sector auditing standards to align with CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information, and CSAE 3001, Direct Engagements;
  • identifying and addressing gaps between the Canadian Auditing Standards and the public sector auditing standards; and
  • updating terminology used and practices described in the public sector auditing standards to be consistent with current public sector practice and other standards in the Handbook.

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PROJECT NEWS & DECISION SUMMARIES

AASB Decision Summary – January 23-24, 2017
The AASB discussed issues related to developing an assurance and related services guideline to replace Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector. Key issues discussed included the scope of the guideline and elements to be included in the reporting. The AASB plans to approve an exposure draft of the guideline at its March 2017 meeting.

AASB Decision Summary – October 17-18, 2016
The AASB discussed issues related to the development of an auditing guideline to replace Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector, including: 

  • the scope of the auditing guideline;
  • appropriate reporting elements to include in the auditor’s report; and
  • illustrative reports to be included.

AASB Decision Summary – June 27, 2016
The AASB discussed issues related to compliance audits in the public sector.  The AASB agreed to develop a new assurance and related services guideline to address material contained in Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector.

AASB Decision Summary – March 7- 8, 2016
The AASB discussed issues related to its project to revise Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors, including:

  • confirmed the need to maintain a compliance auditing standard for the public sector;
  • whether further guidance on identifying and assessing internal controls under CSAE 3000 and 3001 is needed; and
  • stakeholder demands for guidance related to value-for-money audits.

The AASB decided that the Public Sector Auditing Standards Review Task Force should continue to explore the best means of incorporating public sector auditing standards into the Handbook for discussion at a future meeting.

AASB Decision Summary – September 16-18, 2015
The AASB unanimously approved a project proposal to revise Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors. The project will:

  • validate the need for the Sections;
  • align the Sections with CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information, and CSAE 3001, Direct Engagements;
  • update the terminology in the Sections to represent current public sector practices; and
  • revise and present any new material developed in the clarity format.

AASB Decision Summary – June 8-9, 2015
The AASB considered the Sections in the CPA Canada Handbook – Assurance dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors and whether these Sections should be revised or withdrawn. The AASB tentatively concluded that there is evidence of a need to retain and update some of these standards. The AASB asked that a project proposal setting out an approach to review and update the standards be presented to the AASB for approval at its September 2015 meeting.

 

Disclaimer: This project summary 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 Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.