Audit Evidence

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• the new requirement for when the auditor uses automated tools and techniques for obtaining audit evidence;
• the conditional requirement related to accuracy and completeness; and
• the way forward for the project and its completion timeline.

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• the modernizing of the standard with respect to technology by including a conditional requirement for when the auditor uses automated tools and techniques during the audit;
• the addition of a definition for persuasiveness in the standard and whether the term needed to be elevated to a requirement;
• the clarification of how the auditor determines which attributes to consider when evaluating relevance and reliability of information intended to be used as audit evidence;
• whether to clarify the conditional requirement to consider accuracy and completeness in relation to information generated by the entity only; and
• whether the stand-back requirement was duplicative with the requirement in ISA 330, The Auditor’s Responses to Assessed Risks.

The AASB discussed comments received on its Exposure Draft, “CAS 500, Audit Evidence” and reviewed a draft of its response letter to the IAASB’s Exposure Draft of ISA 500, Audit Evidence. Key issues discussed included:

• the key overall messages of the response letter;
• how the auditor’s use of technology was addressed in the Exposure Draft and whether the response letter should advocate for non-authoritative guidance outside of the standard, or a specific requirement in the standard; and
• the level of engagement achieved with interested and affected parties, as outlined in the outreach plan for the project.

The AASB will submit its response in advance of the IAASB’s deadline on April 24, 2023.

The AASB reviewed feedback received on the Exposure Draft of the proposed CAS 500, Audit Evidence. Key matters discussed included:

• the outreach activities completed related to the Exposure Draft;
• the key issues identified by respondents to the proposed changes; and
• the proposed direction for responses to the International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft questions.

The AASB will review and discuss a draft of its response letter at its April 2023 meeting.

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) project to revise International Standard on Auditing (ISA) 500, Audit Evidence.

Key issues included:

• the revisions the IAASB made to the proposed changes to ISA 500 in finalizing its exposure draft; 
• the conforming and consequential amendments related to ISA 500;
• the matters related to the Canadian Exposure Draft, including the comment period and fatal-flaw review of the French translation; and
• a review of the Canadian wrap-around document to be issued as part of the Canadian exposure draft.

The AASB approved the exposure draft, which it expects to issue in late November 2022, with a comment deadline of March 15, 2023.

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues included:

• a full review of proposed ISA 500;
• the conforming and consequential amendments related to ISA 500;
• the exposure period and the proposed implementation period; and
• the topics to be covered in the explanatory memorandum accompanying the exposure draft of ISA 500.

The IAASB expects to approve an exposure draft at its September 2022 meeting. The AASB would then approve a Canadian exposure draft shortly after.

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• the objectives of the standard;
• the definition for audit evidence;
• the addition of general information technology control examples in the standard;
• the inclusion of a diagram on ISA 500 in the explanatory memorandum to the exposure draft; and
• the conforming amendments related to ISA 500.

The AASB discussed the International Auditing and Assurance Standards Board’s proposed International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• how persuasiveness relates in determining sufficient and appropriate audit evidence;
• presenting biases that impact the auditor; and
• clarifying the use of remote observation as an audit procedure.

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on issues related to the IAASB’s project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• the first read of the proposed revised requirements;
• how technology is addressed in the proposed revisions; and
• potential conforming and consequential amendments as a result of revisions to ISA 500.

The AASB will review the proposed application material to the revised standard at a future meeting.

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on issues related to the IAASB’s project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

• the proposed approach for using the terms “consistent and inconsistent” and “corroborate and contradict” in the context of exercising professional skepticism relating to audit evidence; and
• including new requirements in the proposed standard to:
  • address professional skepticism, and
  • conclude whether sufficient appropriate audit evidence has been obtained.

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on the IAASB Working Group’s project proposal to revise International Standard on Auditing (ISA) 500, Audit Evidence.

Key issues discussed included:

• developing a set of factors in relation to, or attributes of, information for auditors to use when considering information to use as audit evidence;
• differentiating the auditor’s work effort in relation to information to use as audit evidence; and
• introducing and defining the concept of persuasive audit evidence.

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) proposals for the way forward in relation to audit evidence, including a proposal to revise International Standard on Auditing (ISA) 500, Audit Evidence.

The IAASB plans to discuss this topic at its June 2020 meeting.

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) information gathering and targeted outreach activities related to audit evidence, as well as the stakeholder consultation plan for Canada. Issues discussed included matters that the Board believes are causing the most difficulties with audit evidence in practice and how these matters can be best addressed.

The AASB decided to form an advisory group to provide input to the Board on issues as the International Auditing and Assurance Standards Board (IAASB) audit evidence project progresses. The Board discussed the size of the advisory group and relevant experience that members should have. The Board will issue a public call to identify and engage potential members.