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Canadian Auditing Standards

Listed Entity and Public Interest Entity

Summary

The International Ethics Standards Board for Accountants (IESBA) approved revisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the IESBA Code) to the definitions of the terms “listed entity” and “public interest entity” (PIE) in December 2021.

The International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs) include requirements specific to listed entities and refer to entities with public interest.

Staff Contact(s)

Jacqui Kuypers, CPA, CA Principal, Auditing and Assurance Standards Board

Phone number  +1 416 204 3445
Email address  [email protected]

Project Status

  • Information gathering

    AASB submitted its response to the IESBA Exposure Draft

  • Approving project

    The IAASB approved project proposal in March 2022

  • Consulting stakeholders

    Track 1 Exposure Draft issued in August 2022

    Stakeholders were encouraged to respond by September 16, 2022

    Read what stakeholders had to say about the Exposure Draft

    Response Booklet
  • Deliberating feedback

    The AASB is deliberating feedback on its Track 1 Exposure Draft

    The IAASB is deliberating feedback on its Track 1 Exposure Draft

  • Final pronouncement

News

February 7, 2023 International Activity, Resource, Article
Survey: Prioritizing Projects in the IAASB’s Work Plan for 2024-2027

The AASB is seeking your input and help in responding to the IAASB’s Proposed Strategy and Work Plan for 2024-2027. The survey is designed to gather your input on which projects should be prioritized by the IAASB. Read the work plan and provide your input via our survey by March 31, 2023.

August 9, 2022 Document for Comment
Proposed Narrow-scope Amendments to CAS 700, Forming and Opinion and Reporting on Financial Statements, and CAS 260, Communication with Those Charged with Governance, as a Result of the Revisions to the IESBA Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities

Share your views on the AASB Exposure Draft – Proposed Narrow-scope Amendments to CAS 700, Forming an Opinion and Reporting on Financial Statements, and CAS 260, Communication with Those Charged with Governance. Submit your comments by September 16, 2022. For full details, visit the Document for Comment page.

August 2, 2022 International Activity
IAASB Proposes Narrow Scope Amendments to Operationalize Changes to the IESBA Code that Enhance Transparency About Independence

The International Auditing and Assurance Standards Board (IAASB) issued its Exposure Draft of narrow scope amendments to ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and ISA 260 (Revised), Communication with Those Charged with Governance. Comments are due to the IAASB on October 4, 2022. The AASB is expected to issue its related exposure draft on August 9, 2022.

Meeting & event summaries

December 13, 2022 AASB Decision Summary – November 28-29, 2022

The AASB discussed issues related to the IAASB’s narrow-scope amendments project to revise the definitions of “listed entity” and “public interest entity”, and other revisions to align with recent changes to the International Ethics Standards Board for Accountants International Code of Ethics for Accountants (including International Independence Standards) (IESBA Code). Key issues included:

  • the IAASB’s proposed objective and guidelines for establishing differential requirements for certain entities in the International Standards on Quality Management (ISQMs) and ISAs;
  • the factors and examples in evaluating the extent of public interest of an entity;
  • a case-by-case analysis of extant differential requirements for listed entities in the ISQMs and ISAs;
  • the IAASB adopted the IESBA definition of “public interest entities” (PIE) and “publicly traded entity” into the ISQMs, ISAs, and the Glossary of Terms; and
  • the introductory and application material in the ISQMs and ISAs.

The AASB also discussed possible implications in Canada of the proposed revisions, considering the Codes of Professional Conduct that practitioners are required to comply with in Canada are not the same as the IESBA Code. The Board will discuss these implications further at future meetings.

October 12, 2022 AASB Decision Summary – September 29, 2022

The AASB discussed feedback received on its Exposure Draft, “Proposed Narrow-scope Amendments to CAS 700, Forming an Opinion and Reporting on Financial Statements, and CAS 260, Communication with Those Charged with Governance, as a Result of the Revisions to the International Ethics Standards Board for Accountants (IESBA) Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities.” Key issues included:

  • when auditors should be required to disclose in the auditor’s report the independence requirements they complied with;
  • whether auditors should be required to communicate the independence requirements applied in their communications with those charged with governance; and
  • the potential Canadian amendments to the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions.

The AASB also discussed its draft response to the IAASB’s Exposure Draft, “Proposed Narrow Scope Amendments to ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and ISA 260 (Revised), Communication with Those Charged with Governance, as a Result of the Revisions to the IESBA Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities (PIE).”

October 3, 2022 AASB Decision Summary – September 8-9 2022

The AASB discussed its draft responses to the IAASB’s Exposure Draft, "Proposed Narrow Scope Amendments to ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and ISA 260 (Revised), Communication with Those Charged with Governance as a Result of the Revisions to the International Ethics Standards Board for Accountants (IESBA) Code that Require a Firm to Publicly Disclose When a Firm Has Applied the Independence Requirements for Public Interest Entities (PIE)." Key issues discussed included:

  • whether the auditor’s report is the appropriate mechanism for publicly disclosing when the auditor has applied relevant ethical requirements for independence for certain entities in performing the audits of financial statements;
  • the proposed revisions to ISA 700 (Revised) and ISA 260 (Revised);
  • whether the IAASB should consider revisions to International Standard on Review Engagements 2400 (Revised), Engagements to Review Historical Financial Statements, to address transparency about the ethical requirements for independence applied for certain entities; and
  • the proposed effective date of the revisions to ISA 700 (Revised) and ISA 260 (Revised).

The IAASB’s deadline for comments on its Exposure Draft is October 4, 2022. The AASB will respond.

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.