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AASB Decision Summary – May 5, 2021

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 Management

Quality Management

The AASB reviewed a draft of its exposure draft addressing conforming amendments to Other Canadian Standards, resulting from the January 2021 approval of Canadian Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements.

The AASB is expected to issue the final exposure draft in late June 2021, with comments due by September 30, 2021.

The AASB also discussed its approach to responding to the International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft, “Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards.”

Canadian Auditing Standards

Audits of Less Complex Entities

The AASB discussed the way forward in Canada related to the anticipated IAASB exposure draft of a proposed standard for audits of less complex entities. The AASB decided it would issue a Canadian discussion paper to obtain stakeholder feedback on the proposals in the IAASB’s exposure draft and other possible options the AASB could explore to address the public interest issues.

The IAASB is expected to issue its exposure draft in July 2021. The AASB will issue its discussion paper soon thereafter.


2021-2022 Annual Plan

The AASB reviewed a first draft of its 2021-2022 Annual Plan.

The AASB expects to approve the final 2021-2022 Annual Plan at its June 2021 meeting and publish it in early July 2021.

2022-2025 Strategic Plan

The AASB discussed the input received from Canadian stakeholders on the Draft 2022-2025 Strategic Plan. Key issues discussed included:

  • Remote working environmental theme: reduce the focus on working from home and increase the focus on flexible work arrangements and evolving practices and work models.
  • Consultation outreach activities and feedback received.

The AASB concluded additional outreach activities were not required. The Board is expected to approve the 2022-2025 Strategic Plan at its June 2021 meeting, and publish it in early July 2021.