A Message from Our Chair
The past year has been one of continued momentum and purposeful progress for the Canadian Auditing and Assurance Standards Board (AASB). As Chair, I am pleased to report that the Board is continuing to respond thoughtfully to an environment marked by rapid change, increasing complexity, and rising expectations of audit and assurance.
At the core of our work remains a steadfast commitment to the public interest. Working closely throughout the year with our Committees – including advisory groups, working groups, reference groups, and task forces – the Board advanced its projects and strengthened confidence in audit and assurance through timely standard setting, meaningful engagement, and active participation in the global standard‑setting ecosystem.
Canada’s voice continues to be well represented internationally. A highlight of the year was the AASB partnering with the International Auditing and Assurance Standards Board (IAASB) to host the Canadian Technology Quality Management Roundtable, which brought together participants from across the external reporting ecosystem. The discussion underscored the opportunities and challenges that technology presents and what additional support practitioners and firms need to better understand how quality management standards apply to these technologies.
Delivering high-quality standards to the Canadian market is a cornerstone of the AASB’s work. This year, we approved our new Canadian-made standard, Canadian Standard on Related Services (CSRS) 4250, Compilations of Future-oriented Financial Information and Pro Forma to meet Canadian interested parties' needs for compilation services on forward-looking financial information. CSRS 4250 is designed to promote consistency in performance and reporting with our compilation standard for historical financial information, CSRS 4200, Compilation Engagements. We also approved Canada’s first sustainability assurance standard, Canadian Standard on Sustainability Assurance (CSSA) 5000, General Requirements for Sustainability Assurance Engagements, establishing an overarching standard that is framework and practitioner agnostic, to help meet future demand for sustainability assurance.
Supporting high-quality audits for less complex entities (LCEs) also remains a priority. During the year, with the support of our Audits of LCEs Working Group, the AASB focused on addressing LCE audit pain points by influencing the development of revised standards and continuing efforts to resolve application challenges in practice.
None of this work would be possible without the dedication and expertise of the AASB, our committees, the staff team, and the many interested and affected parties who contribute their time and insights. I extend my sincere thanks to all who support the Board’s work and help ensure that Canadian auditing and assurance standards remain credible, relevant, and responsive.
Bob Bosshard, CPA, CA, ICD.D
Chair, AASB
Highlights of AASB Performance
Engaging with our community
Over the past year, we undertook extensive outreach in support of key Exposure Drafts, including “Use of Experts: Proposed Narrow-scope Amendments Related to the IAASB’s Using the Work of an External Expert Project,” and the Re-exposure Draft, “Canadian Amendments Related to Indigenous Matters in CSSA 5000, General Requirements for Sustainability Assurance Engagements.” These outreach activities provided valuable insight into how the proposed requirements are understood and applied in practice and helped ensure that Canadian perspectives are thoughtfully reflected in our decisions. In particular, feedback on our proposed Indigenous amendment deepened our engagement with Indigenous Peoples and influenced the direction of our work in a meaningful way.
In addition, the AASB actively collaborated with partners across the assurance ecosystem by participating in a wide range of external events. These interactions strengthened our understanding of emerging issues and reinforced the importance of dialogue in maintaining standards that are both robust and practicable.
Strengthening international influence
This year, the AASB partnered with the IAASB to host the Canadian Technology Quality Management Roundtable. The event brought together 25 participants from across the external reporting ecosystem to discuss how emerging technologies are reshaping audit and assurance engagements, and how quality management standards apply to these technologies.
The AASB also remained closely engaged with the Canadian IAASB member, sharing perspectives on all IAASB projects and participating in committee‑level discussions. Our active involvement in jurisdictional standard setter meetings and related opportunities, such as engaging directly with the IAASB in an in-person outreach meeting, further strengthened collaboration and knowledge sharing.
Approving new and revised standards
Approving new and revised standards is a core aspect of the AASB’s work to respond directly to evolving risks, information needs, and expectations. It requires rigorous due process, including public consultations and thorough analysis to ensure the standard meets the highest quality and relevance. This year, the Board approved several notable standards and amendments, including:
Supporting audits of LCEs
Supporting high-quality audits for LCEs remains a priority. During the year, with the support of the Audits of LCEs Working Group, the AASB focused on influencing revisions to key international standards where challenges are commonly encountered in LCE audits. The Working Group also began the development of non-authoritative guidance to support journal-entry testing for audits of LCEs under the recently revised fraud standard (CAS 240) with expected publication in the first half of fiscal 2027.