Canadian Auditing Standards

Audits of Less Complex Entities

Summary

Practitioners have identified scalability challenges when applying the Canadian Auditing Standards (CASs) to audits of entities where their nature and circumstances are less complex – in particular, Canada’s many small and micro-entities.

Staff Contact(s)

Svetlana Berger, CPA, CA, MAcc

Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Discussion Paper comment deadline was August 14, 2019

    AASB submitted its response to the IAASB’s Discussion Paper

    IAASB is deliberating feedback received on the Discussion Paper.

  • Approving project
  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


October 11, 2019

Volunteer Opportunity – Audits of Less Complex Entities Advisory Group

The Board is looking for individuals who have experience with audits of less complex entities to be members of our Audits of Less Complex Entities Advisory Group. Read more about the opportunity we have available and apply by November 1, 2019.

October 4, 2019

AASB Response – Audits of Less Complex Entities

The Board submitted a comment letter responding to the IAASB’s Discussion Paper, Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges of Applying the ISAs. Visit the IAASB’s website to read the Board’s response.

September 10, 2019

AASB Decision Summary – September 9-10, 2019 Meeting

The AASB discussed its draft response to the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.”

The Chair and Director will review the final letter prior to submission.

The AASB decided to form an Advisory Group to support staff and the Board on the Audits of Less Complex Entities project. The Advisory Group will help identify key issues related to audits of less complex entities in the Canadian environment and provide input to the AASB on proposals developed by the IAASB as this project evolves.

July 11, 2019

Join us! AASB Discussion Group – Understanding the Challenges of Auditing Less Complex Entities

The AASB is investigating the challenges experienced by Canadian practitioners when auditing LCEs. Join the AASB Discussion Group where AASB Principal, Andrea Lee, will be sharing information, asking questions, and moderating discussion to help us understand what you, our stakeholders, need when performing audits of LCEs.

July 5, 2019

Virtual Roundtable Discussions – Audits of Less Complex Entities – French Roundtable Added!

The Board added a French language virtual roundtable on July 18 to allow our French-speaking stakeholders the flexibility to provide feedback on the IAASB’s discussion paper Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs) in French. English roundtables are on July 24 and August 1. Register now to have your say!

June 10, 2019

AASB Decision Summary — June 10-11, 2019

The AASB discussed the proposed plan to collect stakeholders’ feedback to inform its response to the IAASB’S Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.”

The Board will continue to discuss this project at future meetings.

June 7, 2019

Virtual Roundtable Discussions – Audits of Less Complex Entities

You are invited to attend one of our virtual roundtables on July 24 or August 1 to provide your feedback on the IAASB’s discussion paper Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs). Register now to have your say!

May 30, 2019

AASB Discussion Paper – Audits of Less Complex Entities

The AASB has issued its Discussion Paper that corresponds to the IAASB’s discussion paper on this topic. Stakeholders are encouraged to submit their comments by August 14, 2019.

May 30, 2019

IAASB Discussion Paper - Audits of Less Complex Entities

The IAASB has issued a Discussion Paper Audits of Less Complex Entities. Canadian stakeholders are encouraged to submit their comments to the IAASB by September 12, 2019.

May 15, 2019

AASB Decision Summary — May 6, 2019 Conference Call

The AASB approved a Canadian Discussion Paper on the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.” The Board expects to issue the Discussion Paper in early June 2019, with a comment deadline of August 14, 2019.

April 26, 2019

In-Brief – Feedback from outreach session: barriers to effective and efficient audits of less complex entities

In November 2018, the AASB and CPA Canada hosted an outreach session with practitioners to discuss the barriers to effective and efficient audits of less complex entities. Read more for what we heard.

March 4, 2019

AASB Decision Summary – March 4-5, 2019

The AASB provided input to the IAASB members from Canada on the proposed Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges.” A member of the IAASB’s Less Complex Entities Working Group participated in the AASB’s discussion of this topic.

The IAASB is expected to approve the Discussion Paper at its March 2019 meeting, and issue it for public comment in April 2019. The AASB will then consider what activities to undertake to obtain Canadian stakeholders’ views on the Discussion Paper.

September 13, 2018

AASB Decision Summary – September 13-14, 2018

The AASB discussed the IAASB’s project proposal and developments related to audits of less complex entities, including:

  • the project scope;
  • Canadian outreach to be performed; and
  • the project timeline.

CPA Canada’s Professional Programs Department gave a presentation about the Professional Engagement Guide’s development.

January 4, 2018

Vancouver Stakeholder Outreach Sessions: What the AASB Heard – October 2017

In October 2017, the Board went to Vancouver, where it hosted two outreach sessions with local stakeholders on issues affecting auditing and assurance standards. Read more for what we heard. https://www.frascanada.ca/en/aasb/news-listings/2017-vancouver-outreach-sessions.

News


October 11, 2019

News

Volunteer Opportunity – Audits of Less Complex Entities Advisory Group

The Board is looking for individuals who have experience with audits of less complex entities to be members of our Audits of Less Complex Entities Advisory Group. Read more about the opportunity we have available and apply by November 1, 2019.

October 4, 2019

News

AASB Response – Audits of Less Complex Entities

The Board submitted a comment letter responding to the IAASB’s Discussion Paper, Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges of Applying the ISAs. Visit the IAASB’s website to read the Board’s response.

September 10, 2019

Meeting Summary

AASB Decision Summary – September 9-10, 2019 Meeting

The AASB discussed its draft response to the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.”

The Chair and Director will review the final letter prior to submission.

The AASB decided to form an Advisory Group to support staff and the Board on the Audits of Less Complex Entities project. The Advisory Group will help identify key issues related to audits of less complex entities in the Canadian environment and provide input to the AASB on proposals developed by the IAASB as this project evolves.

July 11, 2019

News

Join us! AASB Discussion Group – Understanding the Challenges of Auditing Less Complex Entities

The AASB is investigating the challenges experienced by Canadian practitioners when auditing LCEs. Join the AASB Discussion Group where AASB Principal, Andrea Lee, will be sharing information, asking questions, and moderating discussion to help us understand what you, our stakeholders, need when performing audits of LCEs.

July 5, 2019

News

Virtual Roundtable Discussions – Audits of Less Complex Entities – French Roundtable Added!

The Board added a French language virtual roundtable on July 18 to allow our French-speaking stakeholders the flexibility to provide feedback on the IAASB’s discussion paper Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs) in French. English roundtables are on July 24 and August 1. Register now to have your say!

June 10, 2019

Meeting Summary

AASB Decision Summary — June 10-11, 2019

The AASB discussed the proposed plan to collect stakeholders’ feedback to inform its response to the IAASB’S Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.”

The Board will continue to discuss this project at future meetings.

June 7, 2019

News

Virtual Roundtable Discussions – Audits of Less Complex Entities

You are invited to attend one of our virtual roundtables on July 24 or August 1 to provide your feedback on the IAASB’s discussion paper Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs). Register now to have your say!

May 30, 2019

Document for Comment

AASB Discussion Paper – Audits of Less Complex Entities

The AASB has issued its Discussion Paper that corresponds to the IAASB’s discussion paper on this topic. Stakeholders are encouraged to submit their comments by August 14, 2019.

May 30, 2019

News

IAASB Discussion Paper - Audits of Less Complex Entities

The IAASB has issued a Discussion Paper Audits of Less Complex Entities. Canadian stakeholders are encouraged to submit their comments to the IAASB by September 12, 2019.

May 15, 2019

Meeting Summary

AASB Decision Summary — May 6, 2019 Conference Call

The AASB approved a Canadian Discussion Paper on the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs.” The Board expects to issue the Discussion Paper in early June 2019, with a comment deadline of August 14, 2019.

April 26, 2019

News

In-Brief – Feedback from outreach session: barriers to effective and efficient audits of less complex entities

In November 2018, the AASB and CPA Canada hosted an outreach session with practitioners to discuss the barriers to effective and efficient audits of less complex entities. Read more for what we heard.

March 4, 2019

Meeting Summary

AASB Decision Summary – March 4-5, 2019

The AASB provided input to the IAASB members from Canada on the proposed Discussion Paper, “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges.” A member of the IAASB’s Less Complex Entities Working Group participated in the AASB’s discussion of this topic.

The IAASB is expected to approve the Discussion Paper at its March 2019 meeting, and issue it for public comment in April 2019. The AASB will then consider what activities to undertake to obtain Canadian stakeholders’ views on the Discussion Paper.

September 13, 2018

Meeting Summary

AASB Decision Summary – September 13-14, 2018

The AASB discussed the IAASB’s project proposal and developments related to audits of less complex entities, including:

  • the project scope;
  • Canadian outreach to be performed; and
  • the project timeline.

CPA Canada’s Professional Programs Department gave a presentation about the Professional Engagement Guide’s development.

January 4, 2018

News

Vancouver Stakeholder Outreach Sessions: What the AASB Heard – October 2017

In October 2017, the Board went to Vancouver, where it hosted two outreach sessions with local stakeholders on issues affecting auditing and assurance standards. Read more for what we heard. https://www.frascanada.ca/en/aasb/news-listings/2017-vancouver-outreach-sessions.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.