Auditing and Assurance Standards Board
February 9, 2017
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)
Auditing Accounting Estimates
The AASB provided input to the CPA Canada nominee on the IAASB on issues related to the IAASB’s project to revise ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, including proposed revisions addressing:
- how an auditor would respond to the assessed risk of material misstatement; and
- the overall evaluation of whether sufficient appropriate audit evidence has been obtained about the accounting estimates.
The AASB also discussed issues related to an upcoming Canadian exposure draft of CAS 540, including:
- the anticipated length of the comment period;
- how the exposure draft could be distributed;
- whether there are issues specific to Canada that should be addressed; and
- what, if any, specific questions should be asked of Canadian stakeholders.
The IAASB is expected to approve its exposure draft in March 2017. The AASB will approve its exposure draft in April 2017.
Assurance and Related Services Standards (other than CASs)
Special Reports – Assurance on Compliance with Agreements, Statutes and Regulations
The AASB unanimously approved a re-exposure draft of proposed CSAE 3530, Special Considerations — Attestation Engagements to Report on Compliance, and CSAE 3531, Special Considerations — Direct Engagements to Report on Compliance. CSAE 3530 and CSAE 3531 would replace Sections 5800, Special Reports — Introduction, 5815, Special Reports — Audit Reports on Compliance with Agreements, Statutes and Regulations, and 8600, Reviews of Compliance with Agreements and Regulations. The re-exposure draft is expected to be issued in April 2017 and will have a response date of July 28, 2017.