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)
Audits of Less Complex Entities
The AASB received a presentation from the International Auditing and Assurance Standards Board’s (IAASB) Chair, Tom Seidenstein, and its Technical Director, Willie Botha. Their presentation was about the IAASB’s work to address issues identified by respondents to the IAASB’s Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.” The Board also discussed Canadian actions the AASB may consider taking to ensure the CASs are fit for purpose in an audit of the less-complex elements of an entity’s operations and financial statements.
Auditor Reporting
The AASB reviewed a draft response to the IAASB’s “Auditor Reporting Post-Implementation Review Stakeholder Survey” for national standard setters. The response was informed by outreach the Board conducted in the late summer and early fall 2020 with practitioners, preparers, and those charged with governance
Other
2021-2022 Annual Plan
The AASB is delaying issuing its 2022-2025 Strategic Plan until July 1, 2021, to allow it time to consider the implications of the COVID-19 pandemic on its strategic objectives. The Board discussed the implications of this delay on its approach to developing and publishing its 2021-2022 Annual Plan. It decided that it will delay the issuance of the Annual Plan until July 1, 2021, and will publish a news article on its website, informing stakeholders about its planned first quarter activities and other matters.
Emerging Technology
The AASB received a presentation from two Ernst & Young representatives on several emerging technologies currently being used in performing assurance engagements. Topics included machine learning and analytics, robotics process automation, and the use of drones in the audit in performing inventory counts.