Auditing and Assurance Standards Board
May 3, 2018
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)
The Board received an update from the Canadian observer on the American Institute of Certified Public Accountants project to revise its audit evidence standard.
The Board received an update on the ongoing discussions with regulators and other stakeholders on issues related to implementing the new auditor reporting standards and preparing a combined U.S. and Canadian auditor’s report for 2018 and subsequent years.
The Board will continue to discuss these issues at its June 2018 meeting, when it is also expected to approve revisions to the auditor reporting standards addressing the applicability of key audit matter reporting for TSX-listed entities.
The Board discussed the International Auditing and Assurance Standards Board’s (IAASB) project to revise International Standard on Quality Control (ISQC) 1, Quality Control for Firms That Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements. The Board agreed that staff would perform limited consultations prior to the release of the IAASB’s exposure draft, which is expected in the fall of 2018. These limited consultations will help the Board identify Canadian-specific issues related to the IAASB’s proposals.
Assurance and Related Services Standards (Other Than CASs)
The Board discussed Canadian-specific issues related to its project to consider adopting International Standard on Related Services (ISRS 4400) (Revised), Agreed-Upon Procedures Engagements, including whether:
- a Canadian standard based on ISRS 4400 would replace Section 9100, Reports on the Results of Applying Specified Auditing Procedures to Financial Information Other than Financial Statements, and Section 9110, Agreed-upon Procedures Regarding Internal Control over Financial Reporting; and
- an amendment would be needed in the Canadian standard indicating that the Provincial Codes of Professional Conduct applicable in Canada require practitioners performing agreed-upon procedures engagements to be independent.
The Board intends to continue these discussions as the IAASB’s project evolves.
Public Sector Auditing Standards
The Board discussed consequential amendments to Canadian Standard on Related Services (CSRS) 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement, that would address comments respondents raised on the Exposure Draft of Assurance and Related Services Guideline (AuG) 49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements. The Board supported the proposed amendments, with minor revisions. AuG-49 and the final wording of the consequential amendments will be brought to the Board for approval at a future date.