Page 8 - Auditing and Assurance Standards Board Annual Report 2014-2015
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6 AASB Annual Report 2014-2015

Goal A: Set high-quality standards and guidance that meet the needs of
Canadian stakeholders

Objective Performance Status for the year ended March 31, 2015

• The AASB concluded that it would neither be practicable nor
desirable to meed the three-month issuance performance
indicator in deciding on the adoption of these international
standards. A key reason relates to the complex composition
of Canadian securities markets. There is a wide variation in
the size of companies, including many very small companies
involved in natural resource exploration. Before final
approval of the standards, the AASB needs to obtain input
on, for example, potential difficulties that may indicate some
companies may need more time to implement requirements
to report key audit matters. Also, the U.S. Public Company
Accounting Oversight Board has not decided on what
direction it will take regarding changes to auditor reporting.
While the changes to standards regarding audit of
disclosures are relatively straightforward, the effective date
for those changes is meant to be the same as for reporting
other information standards. The AASB’s position is that
it is vital to ensure that the standards reflect what is best
for Canada, even though it will mean that the performance
indicator regarding timing of adoption of international
standards will not be met.

Other standards Complete highest Most aspects of the objective were achieved
are responsive to priority projects
specifically identified set out in annual • Quarterly, the AASB reviewed a project progress report
needs of Canadian operating plans by identifying and tracking the progress of 11 Canadian non-
stakeholders. planned completion ISA/CAS projects. Some of these projects are intended
dates. to result in standards that are adopted from, or largely
based on, standards being developing by the IAASB. In
such cases, the AASB is significantly dependent on the
IAASB’s timing. For other Canadian projects, there is no
corresponding international initiative. The planned timelines
for projects may be adjusted when circumstances arise that
could not reasonably be foreseen when project milestones
were initially set.

• Of the 11 projects, eight were on track or slightly behind (by
one calendar quarter or less) the targets that were set at the
beginning of the year. Three projects (engagements to report
on compliance with agreements, statues and regulations;
joint policy statement with the lawyers; and association) were
delayed by more than one calendar quarter, as the AASB
identified significant additional issues that needed to be
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