This summary of decision 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.
Assurance and Related Services Standards (other than CASs)
Public Sector Auditing Standards
The AASB unanimously approved the exposure draft of Assurance and Related Services Guideline (AuG) 50, Conducting a Performance Audit in the Public Sector in Accordance with Canadian Standard on Assurance Engagement (CSAE) 3001. The Board expects to issue the exposure draft in early June 2019, with a comment deadline of August 30, 2019.
Reporting on Controls at a Service Organization
The AASB unanimously approved revised CSAE 3416, Reporting on Controls at a Service Organization Relevant to User Entities’ Internal Control over Financial Reporting.
The Board concluded that changes made in finalizing the standard were not significantly different from the proposals in the Exposure Draft and, therefore, re-exposure is not needed. The new standard will be effective for service auditors’ reports for periods ending on or after September 15, 2020. It is expected to be included in a Handbook update in September 2019 once the Auditing and Assurance Standards Oversight Council confirms that the Board followed due process with proper regard for the public interest.
Audits of Less Complex Entities
The AASB approved a Canadian Discussion Paper on the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.” The Board expects to issue the Discussion Paper in early June 2019, with a comment deadline of August 14, 2019.
IAASB Strategy and Work Program
The AASB discussed its draft response to the IAASB’s Consultation Paper, “Proposed Strategy for 2020-2023 and Work Plan for 2020-2021.” A draft response letter will be circulated offline to the Board for review, and a final draft will be reviewed by both the Board Chair and Director prior to submission.