AASB

AASB Decision Summary – January 23-24, 2020

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 Standards on Quality Control

Quality Management

The AASB decided to conduct additional consultations to assist it in making an informed decision about the scope of proposed Canadian Standard on Quality Management (CSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements. Staff will conduct these consultations in the spring and early summer of 2020.

Assurance and Related Services Standards (other than CASs)

Agreed-upon Procedures

The AASB discussed matters related to the adoption of International Standard on Related Services (ISRS) 4400, Agreed-upon Procedures Engagements. Matters discussed included:

  • conforming amendments to Section 7200, Auditor Assistance to Underwriters and Others; and
  • Canadian amendments to address the fact that Canadian Standard on Quality Control (CSQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Engagements, does not apply to related services engagements.

The AASB is expected to approve the Canadian equivalent standard of ISRS 4400 at its March 2020 meeting.

Future-oriented Financial Information

The AASB discussed how the Accounting Standards Board’s (AcSB) decision to withdraw Part V of the CPA Canada Handbook – Accounting affects Assurance and Related Services Guideline (AuG)-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, and AuG-16, Compilation of a Financial Forecast or Projection. AuG-6 and AuG-16 refer to Section 4250, Future-oriented Financial Information in Part V of the Handbook. The Board decided to amend the introductions to AuG-6 and AuG-16 to address the changes being made by the AcSB.

Other

AASB Annual Plan

The AASB reviewed a second draft of its 2020-2021 Annual Plan and expects to approve the final version at its March 2020 meeting.

Once the Auditing and Assurance Standards Oversight Council confirms that the AASB followed due process with proper regard for the public interest, the Board expects to publish its 2020-2021 Annual Plan by April 1, 2020.

The AASB discussed the nine-month performance review of its 2019-2020 Annual Plan and concluded it is well-positioned to meet substantially all targets by March 31, 2020.

AASB Strategic Plan for 2021 Onwards

The AASB discussed environmental factors relevant to the its strategic plan for 2021 onwards and reached preliminary conclusions on related strategic directions, goals, and objectives. The Board will continue strategic planning discussions at its March 2020 meeting. It plans to issue a Draft Strategic Plan for stakeholder feedback in Q1 of fiscal 2020-2021.