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.
Assurance and Related Services Standards (other than CASs)
The AASB approved Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements. CSRS 4200 will replace Section 9200, Compilation Engagements, and Assurance and Related Services Guideline (AuG) 5, Compilation Engagements – Financial Statement Disclosures. CSRS 4200 is effective for compiled financial information for periods ending on or after December 14, 2021.
The AASB concluded that the revisions to the standard were significantly different from the proposals in the Exposure Draft, “Compilation Engagements." The Board decided not to re-expose the changes as they do not significantly increase the practitioner’s work effort and responsibility. The Board concluded re-exposure would not reveal any new information of which it had not already been made aware. Re-exposure would also unnecessarily delay the implementation of the standard.
Once the Auditing and Assurance Standards Oversight Council confirms that the AASB followed due process with proper regard for the public interest, it is expected CSRS 4200 will be issued in the February 2020 CPA Canada Handbook – Assurance update.
Public Sector Auditing Standards
The AASB discussed the key issues raised by stakeholders on the Exposure Draft, “Assurance and Related Services Guideline (AuG) 50, Conducting a Performance Audit in the Public Sector in Accordance with CSAE 3001.” Key issues discussed included:
- the definition of legislative auditor;
- addressing concerns related to internal control; and
- how to present an assurance conclusion in a performance audit.
The AASB will continue to discuss these issues at a future meeting.
The AASB reviewed the assumptions and process for developing the 2020-2021 Annual Plan, including an assessment of the actions required in the final year of the 2016-2021 Strategic Plan to meet the strategic objectives. A draft of the annual plan will be discussed at the December 2019 meeting.
The AASB discussed the process and timeline for developing the Strategic Plan for 2021 and onwards. Several guest speakers presented their perspectives on the evolving audit and assurance environment. The Board identified various environmental factors that may drive its future strategic plans. The Board also discussed an analysis of strengths, weaknesses, opportunities, and threats.
The AASB will continue to discuss strategic planning at future meetings.
Terms of Reference
The AASB discussed key issues related to the development of a due process manual and reviewed a draft of the manual. The Board will continue to discuss issues and develop the manual at future meetings.