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
Going Concern
The AASB reviewed the responses received to the Canadian Exposure Draft on Canadian Auditing Standards (CAS) 570, Going Concern, and the Board’s response to the International Auditing and Assurance Standards Board (IAASB) on the proposed ISA 570, Going Concern. Key issues discussed included:
- that the AASB’s response letter should highlight our concerns regarding the misalignment between financial reporting and auditing standards and the expectations gap arising from the proposed auditor’s statements in the auditor’s report; and
- that the AASB response letter should clearly state that the AASB does not support the proposed auditor’s conclusion on the appropriateness of management’s use of the going concern basis of accounting and the statement that the auditor did not identify any material uncertainty relating to going concern.
The AASB concluded that robust, meaningful, and appropriate engagement has been obtained in developing the response letter.
The response letter to the IAASB was submitted before its comment deadline of August 24, 2023.