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 and Public Interest Entity
The AASB discussed Canadian due process matters related to the AASB’s decision to not adopt, at this time, the International Auditing and Assurance Standards Board’s (IAASB) narrow-scope amendments resulting from the revisions to the definitions of listed entity and public interest entity in the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants, including International Independence Standards (IESBA Code).
The AASB will continue to discuss these due process matters at its March 2026 meeting.
International Standards on Auditing (ISA) 500 Series
The AASB discussed several topics relevant to the IAASB’s ISA 500 Series project to revise ISA 501, Audit Evidence — Specific Considerations for Selected Items – Inventory existence and condition, and ISA 505, External Confirmations. The Board will share feedback from AASB members directly with the IAASB Project Team through an engagement opportunity, alongside other jurisdictional standard setters. The IAASB Project Team is developing a project proposal, which is expected to be approved by the IAASB in March 2026.
Other Canadian Standards (OCSs)
Compilations of Future-oriented Financial Information (FOFI) and Pro Forma
The AASB discussed the proposed Canadian Standard on Related Services (CSRS) 4250, Compilation Engagements on Future-oriented Financial Information and Pro Forma. Key issues discussed included:
- staff recommendations on remaining issues arising from Exposure Draft (ED) outreach, arising from Board feedback from the June and September meetings;
- remaining edits from members’ final read of the marked-up proposed CSRS following ED changes; and
- views on the draft Basis for Conclusions, including whether any significant matters are missing.
The AASB anticipates approval of the final standard at its March 2026 meeting.
Indigenous Matters in Canadian Standard on Sustainability Assurance (CSSA) 5000, General Requirements for Sustainability Assurance Engagements
The AASB discussed the proposed amendment related to Indigenous matters in the proposed CSSA 5000 (the ‘Indigenous amendment’). Key issues included:
- views on the planned communication and development activities associated with continuing the work on the Indigenous amendment on a separate timeline from CSSA 5000;
- ensuring transparency for all interested parties on the status of the Indigenous amendment and the nature of the work underway, through direct communication with re-exposure respondents and updates on the project page; and
- the planned activities to execute the communication plan and revise the Indigenous amendment, including the anticipated timeline for completion.
The AASB anticipates that work on the Indigenous amendment will continue throughout fiscal 2027. Interested parties are encouraged to follow the project’s progress on the Indigenous Matters in CSSA 5000 page.
Other Topics
Performance Assessment and Annual Plan
The AASB discussed and provided feedback on the first draft of its:
- 2025-2026 performance assessment; and
- 2026-2027 annual plan.
The AASB anticipates approval of both documents at its March 2026 meeting.