Association

OBJECTIVE AND SCOPE OF THIS PROJECT

The objective of this project is to revise and replace Section 5020, Association, to address issues raised by practitioners and other Canadian stakeholders.

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This project will address key issues including:

  • determining the meaning of “association”;
  • identifying when a practitioner becomes associated with information;
  • establishing the work effort required and the communications needed in the context of the nature and extent of the practitioner’s association with information; and
  • determining how this standard should interrelate with other standards.

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PROJECT NEWS

Basis for Conclusions – CSOA 5000, Use of the Practitioner’s Communication or Name
January 3, 2017. This document summarizes the process followed in developing this standard and the conclusions reached by the AASB regarding significant comments received in response to its Exposure Draft and Re-exposure Draft.

AASB Decision Summary – October 17-18, 2016
The AASB discussed key risks and issues related to implementing recently approved CSOA 5000, Use of the Practitioner’s Communication or Name.

AASB Decision Summary – September 12-13, 2016
The AASB approved CSOA 5000, Use of the Practitioner’s Communication or Name, and related consequential amendments. The AASB concluded that changes made in finalizing the standard do not result in substantial changes in practice. Therefore re-exposure is not required.  The standard will be effective for a practitioner’s consent provided on or after June 1, 2017 and is expected to be included in a January 2017 Handbook update.

In July 2015, Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents, was replaced with Section 7170, Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition Report.  As a result of a consequential amendment in finalizing CSOA 5000, Section 7500, will be reinstated to the Handbook. The scope of Section 7500 will be amended to remove consents to the use of the auditor’s report included in a business acquisition report as such consents are addressed in Section 7170. The AASB will consider a new project to revise Section 7500 at a future meeting.

Message from the Chair – Change to the Effective Date of Section 7170
August 26, 2016. Our Chair, Darrell Jensen, explains a change to the effective date of Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in a Business Acquisition Report.

AASB Decision Summary – June 27, 2016
The AASB discussed issues related to proposed CSOA 5000, Use of the Practitioner’s Communication or Name. The AASB anticipates approving the final standard following resolution of one issue.

AASB Decision Summary – June 13-14, 2016
The AASB reviewed comments received from Canadian stakeholders on the AASB’s Re-exposure Draft of proposed CSOA 5000, Use of the Practitioner’s Communication or Name. The AASB discussed changes to draft CSOA 5000 to address concerns raised regarding:

  • the scope of the standard;
  • intervening period events; and
  • guidance on content of the written consent.

The AASB will discuss and conclude on revisions to the Re-exposure Draft in response to comments received at its June 2016 conference call, with a goal of approving the final standard.

AASB Re-exposure Draft – Use of the Practitioner’s Communication or Name
March 8, 2016. The AASB has issued a Re-exposure Draft of a proposed new standard that would replace existing Section 5020, Association. Stakeholders are encouraged to submit their comments by May 16, 2016.

AASB Decision Summary – January 18-19, 2016
The AASB unanimously approved a re-exposure draft of proposed CSOA 5000, Use of the Practitioner’s Communication or Name (formerly proposed to be titled Association). CSOA 5000 would replace Section 5020, Association. The re-exposure draft is expected to be issued in March 2016. The effective date of proposed CSOA 5000 would be for a practitioner’s consent provided on or after June 1, 2017. To ensure consistency in application, the re-exposure draft will propose to defer the effective date of Section 7170, Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition Report, to reports issued on or after June 1, 2017 and, accordingly, defer withdrawal of Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

AASB Decision Summary – November 30–December 1, 2015
The AASB reviewed comments received from Canadian stakeholders on its Exposure Draft of proposed CSOA 5000, Association. Issues raised by respondents and discussed by the AASB included:

  • clarifying how the proposed standard addresses information in another language issued by the entity;
  • whether the practitioner should be encouraged to obtain management’s agreement to request the practitioner’s consent before using the practitioner’s name or communication;
  • clarifying the relationship between proposed CSOA 5000 and other standards that deal with accompanying information; and
  • what the effective date of the proposed standard should be.

The AASB will decide whether the proposed CSOA 5000 will be re-exposed at its January 2016 meeting.

AASB Decision Summary – September 16-18, 2015 
The AASB reviewed comments received from Canadian stakeholders on its Exposure Draft of proposed CSOA 5000, Association. Issues raised by respondents and discussed by the AASB included the following:

  • clarifying the name and scope of the standard;
  • clarifying how the proposed standard addresses information in another language issued by the entity;
  • whether the proposed definition of accompanying information needs to be revised; and
  • whether the proposed standard should require the practitioner, before providing consent, to perform procedures in the intervening period from the date of the practitioner’s report on information to the date of consent.

The AASB will continue discussing these and other issues at its November 2015 meeting.

AASB Exposure Draft – Association
March 9, 2015. The AASB has issued an Exposure Draft of a proposed new standard that would replace existing Section 5020, Association. Stakeholders are encouraged to submit their comments, on the form provided, by July 10, 2015.

AASB Decision Summary – January 19-20, 2015 
The AASB unanimously approved an exposure draft of a proposed Canadian Standard on Association (CSOA) 5000, Association. CSOA 5000 would replace Section 5020, Association. The exposure draft is expected to be issued in March 2015.

AASB Decision Summary – November 24-25, 2014
The AASB discussed issues related to its project revising and clarifying Section 5020, Association, including the nature and extent of a practitioner’s responsibilities in various circumstances, including when the practitioner’s consent to the use of the practitioner’s report or name may or may not be given.

The AASB will continue to discuss proposed revisions to Section 5020, with a goal of approving an exposure draft in the first half of 2015.

AASB Decision Summary – October 16, 2014 
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • whether the practitioner’s professional responsibilities under the revised standard should arise only after the practitioner has performed a service for the entity that is within the scope of the Handbook;
  • whether the practitioner’s professional responsibilities related to consent should arise only if the practitioner is requested to consent;
  • the practitioner’s professional responsibilities related to consent in connection with information translated to another language;
  • the practitioner’s professional responsibilities when there has been inappropriate use of the practitioner’s name or report; and
  • how to deal with circumstances when the practitioner is requested, but the practitioner does not wish to, or is unable to, provide consent.

The AASB will continue to discuss issues on this topic, with a goal of issuing an exposure draft in early 2015.

AASB Decision Summary – September 8-9, 2014
The AASB reviewed a draft standard that would replace Section 5020, Association, and discussed issues including:

  • which circumstances would be scoped into the proposed standard and in which circumstances the practitioner would refer to other standards;
  • how the practitioner’s consent to the use of the practitioner’s name or report should be defined in the proposed standard; and
  • what the practitioner’s responsibilities would be when information on which the practitioner reported is issued in more than one language.

The AASB will continue to discuss issues on this topic, with a goal of issuing an exposure draft in early 2015.

AASB Decision Summary – June 9-10, 2014
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • how the concept of association should be explained and the circumstances in which the standard would apply;
  • how the practitioner’s consent to the use of the practitioner’s name or report should be defined or explained in the standard;
  • whether the practitioner should be required to read other information in a document prior to giving consent; and
  • whether the practitioner should be required to advise the client if the practitioner becomes aware of a misstatement in the other information.

The AASB plans to discuss a draft exposure draft at its September 2014 meeting, with a goal of approving an exposure draft by the end of 2014.

AASB Decision Summary – March 10-11, 2014
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • how the concept of association should be explained and the circumstances in which the standard would apply;
  • the work effort required when the practitioner explicitly gives consent; and
  • how to deal with association issues when the practitioner’s report is translated into a different language.

The AASB will continue to discuss issues on this topic, with a goal of issuing an exposure draft in 2014.

AASB Decision Summary – January 20-21, 2014
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • the practitioner’s responsibilities when the practitioner becomes aware that the practitioner’s report or name will be used in connection with a document and consent has not been requested;
  • what documents should be included in the scope of the revised standard;
  • whether the practitioner should be required to give written notice of the practitioner’s refusal to give consent; and
  • the practitioner’s responsibilities when the practitioner’s report is to be reissued in a different language.

The AASB plans to discuss a draft exposure draft at its March and June 2014 meetings, with a goal of issuing an exposure draft in 2014.

AASB Decision Summary – December 2-3, 2013
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • whether to split Section 5020 into three separate Sections addressing:
    • association by consent to use of the practitioner’s report;
    • association by agreeing to the use of the practitioner’s report in another language; and
    • dealing with the inappropriate use of the practitioner’s report;
  • the work effort required to provide consent or agree to the use of the practitioner’s report; and
  • whether the standard should include a statement that the practitioner is never obliged to provide consent or agree to the use of the practitioner’s report.

The AASB plans to discuss a draft exposure draft at its January and March 2014 meetings, with a goal of issuing an exposure draft in 2014.

AASB Decision Summary – September 9-10, 2013
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • in what circumstances a practitioner becomes associated with information;
  • whether the practitioner’s association depends on the type of information involved;
  • in what circumstances a practitioner is required to perform procedures to avoid being associated with misleading information; and
  • the nature, timing and extent of procedures a practitioner would be required to perform.

The AASB will continue to discuss these and other issues over the remainder of the year, with a goal of issuing an exposure draft in 2014.

AASB Decision Summary – June 17-18, 2013
The AASB discussed issues related to revising and clarifying Section 5020, Association, including:

  • what documents should be included in the scope of the revised standard; and
  • the work effort and procedures to be performed on events that occur in the period between the date of the practitioner’s report and the date that the practitioner is asked to consent to the use of that report in a document that is within the scope of the revised standard.

The AASB will continue to discuss these and other issues over the remainder of the year, with a goal of issuing an exposure draft in the first half of 2014.

AASB Decision Summary – February 4-5, 2013
The AASB discussed issues related to revising and clarifying Section 5020, Association, including the practitioner’s:

  • association with translated documents;
  • communication when the practitioner is required to consent to the use of the practitioner’s report in circumstances not already covered by Other Canadian Standards in the CICA Handbook – Assurance; and
  • association with general purpose documents that contain other information, and potential overlap with requirements in CAS 720, The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements.

Over the remainder of this year, the AASB will continue to discuss issues related to association.

AASB Decision Summary – December 3-4, 2012
The AASB discussed issues related to revising and clarifying Section 5020, Association. The matters being addressed by this project overlap those of a number of other AASB projects. The AASB will continue to discuss issues over the course of the next year. An exposure draft is expected to be issued in early 2014.

AASB Decision Summary – September 10-11, 2012
The AASB discussed issues related to revising and clarifying Section 5020, Association. The AASB plans further discussions at several upcoming meetings, with the goal of approving an exposure draft in spring 2014.

AASB Decision Summary – January 16-17, 2012
The AASB approved a project proposal to redraft in the clarity format and, if appropriate, revise Section 5020, Association.

 

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.