Auditing and Assurance Standards Board
July 10, 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 on the ongoing discussions with regulators and other stakeholders, and staff research on issues related to the application of key audit matter reporting to TSX listed entities, with a specific focus on investment funds. The Board will continue to discuss these issues at a future meeting.
Identifying and Assessing the Risks of Material Misstatement
The Board unanimously approved the Canadian exposure draft of revised CAS 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment and conforming amendments. The exposure draft is based on the International Auditing and Assurance Standards Board’s (IAASB’s) exposure draft of proposed revisions to International Standard on Auditing (ISA) 315, with no proposed Canadian amendments. The exposure draft is expected to be issued in early September 2018, with a comment deadline of November 2, 2018.
The Board also discussed the communication and outreach plan related to the exposure draft. English and French webinars will be conducted to build awareness of the exposure draft. The requirements will be field tested to better understand the practical implications of the proposed revisions. Staff will also be holding several video conferences in September to hear stakeholders’ views on the exposure draft.
Approach to Input on Draft Framework
The Board discussed various options to providing input on the Accounting Standards Board (AcSB) Draft Framework for Reporting Performance Measures. In addition to a roundtable session to be held in August, the Board plans to discuss its views and share them with the AcSB Chair during the September 2018 Board meeting.
Survey on the IAASB’s Future Strategy
The Board discussed its draft response to the IAASB’s survey on its future strategy. A final draft of the response will be reviewed by the Board Chair prior to submission.