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 (CASs)
Listed Entity/Public Interest Entity Track-2
The AASB received an update of the outcome of the International Auditing and Assurance Standards Board’s (IAASB) December 2024 meeting regarding the project on narrow-scope amendments to certain international standards owing to the revised definitions of “listed entity” and “public interest entity” in the IESBA Code. Key issues discussed included:
- the IAASB’s decision to postpone the approval of the final narrow-scope amendments from December 2024 to the anticipated date of June 2025;
- the expected issuance of the IAASB’s Invitation to Comment (ITC) in February 2025; and
- consideration of whether the AASB would respond to the IAASB’s ITC.
The AASB is waiting for the Public Trust Committee’s Independence Standing Committee to finalize its definition of “public interest entity” for the Canadian Independence Standards. Once finalized, the AASB will consider the appropriateness of similar narrow-scope amendments to the Canadian Standards on Quality Management and the CASs.
Other Canadian Standards
Compilations of Future-oriented Financial Information
The AASB received an update on the preliminary results of outreach on the Exposure Draft proposing a new Canadian Standard on Related Services (CSRS) 4250, “Compilation Engagements on Future-oriented Financial Information and Pro Forma.” The proposed standard would replace Assurance and Related Services Guideline 16, Compilation of a Financial Forecast or Projection. Key issues discussed included:
- the broad engagement with interested and affected parties undertaken through various outreach activities, including surveys, meetings, field testing, roundtable discussions, and response letters; and
- the key themes from the outreach, noting the proposal was well-received. The feedback from outreach will inform potential revisions to the proposed standard.
The AASB expressed appreciation for the outreach efforts and emphasized the importance of addressing feedback to ensure the proposed standard meets user needs.
Other Topics
AASB Annual Plan and Performance Assessment
The AASB reviewed and provided feedback on the first draft of its:
- 2024-2025 Performance Assessment;
- 2022-2025 Strategic Plan progress report; and
- 2025-2026 Annual Plan.
AASB Strategic Plan
The AASB reviewed and provided feedback on the revised final draft of the 2026-2029 Strategic Plan following revisions in response to the themes identified from outreach.
Practice Inspections Working Group
The AASB received a presentation from the Chair of the Practice Inspections Working Group. The Group consists of practice inspectors from the provincial CPA bodies. The presentation included the:
- activities of the Group;
- demographics of practitioners and firms inspected; and
- inspection findings relating to firms’ systems of quality management and audit, review, and compilation engagements.
Process for Fatal-flaw Review of French Translation
The AASB discussed its fatal-flaw review process of French translations for final standards. Key issues discussed included:
- the existing process and current challenges identified; and
- potential opportunities to reimagine the process going forward.