Auditing and Assurance Standards Board
April 27, 2016
This summary of decisions of the Auditing and Assurance Standards Board (AASB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects and other matters, which might change after further deliberations by the AASB. Decisions to publish exposure draft and Handbook material are final only after a formal voting process.
Canadian Auditing Standards (CASs)
Enhancing Audit Quality
The AASB discussed feedback received from Canadian stakeholders on its Invitation to Comment, “Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits.” The AASB also reviewed an outline of the response to the IAASB on its Invitation to Comment with the same title. The AASB will review the draft response at its next meeting.
Assurance and Related Services Standards (other than CASs)
Future-oriented Financial Information
The AASB discussed the way forward for its project to replace Assurance and Related Services Guideline AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, with a new assurance engagement standard. The AASB confirmed the scope of the project and decided to set up a working group of AASB members to support staff on the project.
Special Reports – Assurance on Compliance with Agreements, Statutes and Regulations
The AASB reviewed comments received from Canadian respondents on its Exposure Draft, “Reports on Compliance with Agreements, Statutes and Regulations.” The AASB decided to explore splitting the proposed standard into two standards that would separately address attest and direct engagements. The AASB also decided to explore how aspects of Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector, might be incorporated into the proposed standards.
AASB Strategic Plan 2016-2021
The AASB unanimously approved its final Strategic Plan for 2016-2021. The Strategic Plan, along with a Basis for Conclusions, will be available on the website following approval of due process by AASOC at its July 2016 meeting.