This narrow-scope maintenance of standards project involves targeted revisions to Canadian Auditing Standard (CAS) 620, Using the Work of an Auditor’s Expert, and other Canadian standards that address the use of external experts. The AASB is considering these proposed revisions in response to similar targeted revisions proposed by the International Auditing and Assurance Standards Board (IAASB).
The IAASB’s project was prompted by revisions to the International Ethics Standards Board for Accountant’s (IESBA) International Code of Ethics for Professional Accountants (Including International Independence Standards) (IESBA Code). These revisions introduced explicit ethical requirements for using the work of external experts in audit, assurance, and non-assurance engagements. Revisions to the IAASB standards would ensure continued interoperability with the IESBA Code.
In Canada, professional accountants are required to comply with ethical requirements set out in the Canadian Codes of Conduct/Ethics issued by various professional accounting bodies (the Canadian CPA Codes). Canadian practitioners who are not professional accountants but who perform certain assurance or non-assurance engagements may either comply with the Canadian CPA Codes or follow other professional requirements or requirements in law or regulation that are at least as demanding.
There are differences between the Canadian CPA Codes and the IESBA Code. One such difference is that the Canadian CPA Codes do not contain the IESBA Code’s provisions related to using the work of an external expert. This means that a Canadian practitioner who complies only with the Canadian CPA Codes may not be affected by proposed revisions. However, this may not be the case for practitioners who are not professional accountants, as they may follow different requirements that may include provisions on using the work of an external expert.
The AASB proposes adopting the IAASB's revisions, as such revisions would not likely result in conflicts with the Canadian CPA Codes. The AASB also proposes revisions to Canadian standards not adopted from IAASB standards, as such revisions are relevant and helpful for practitioners in Canada. The AASB's proposals are subject to comments received on exposure.