AASB Exposure Draft – Proposed Revisions to the Canadian Auditing Standards for Audit Evidence and Risk Response

Advances in technology are changing how entities use information to prepare financial statements and how auditors perform their work. These developments have also raised questions about how auditors apply professional skepticism and determine whether they have obtained sufficient appropriate audit evidence. In addition, regulators and audit oversight authorities have raised concerns about the auditor’s work effort relating to internal controls.

In response, the International Auditing and Assurance Standards Board (IAASB) issued  Exposure Drafts (collectively referred to as the Audit Evidence and Risk Response project) comprising:

• Proposed International Standard on Auditing (ISA) 330, The Auditor’s Responses to Assessed Risks;
• Proposed ISA 500, Audit Evidence;
• Proposed ISA 520, Analytical Procedures; and
• proposed conforming and consequential amendments to International Standards on Quality Managements (ISQMs) and other ISAs.

In addition, the IAASB’s Exposure Drafts also includes Explanatory Memoranda, which provides background to, and an explanation for, the proposed revisions.

The AASB plans, subject to comments received following exposure, to adopt proposed ISA 330 (Revised), ISA 500 (Revised), ISA 520 (Revised), and the proposed conforming and consequential amendments to other ISAs. The result would be revised respective Canadian Auditing Standards (CASs).

We want to hear from you. Share your feedback on this Exposure Draft and help to influence these international standards.