Canadian Auditing Standards

Overall Consideration of the Use of Technology in the Proposals

Proposed to replace the phrase “automated tools and techniques (ATT)” with “technological tools” throughout the ISQMs and ISAs to clarify that technology is a resource used to perform audit procedures, rather than an auditor procedure itself.
Proposed application material and Appendix 3 of ED-ISA 500 explain how the requirements apply when the auditors use technological tools to design and perform audit procedures to obtain audit evidence.
Proposed conforming and consequential amendments include:
- ISQM1.A99A and ISA 220.A64B: Proposed description of “technological tools”, supported by examples, to explain how these tools, as a subset of technological resources, may facilitate the design or performance of procedures to obtain audit evidence.
- ISA 220.25: Proposed adding specificity about the resources used in engagements, including consideration of technological resources at the engagement level.
- ISA 220.A64B: Proposed adding application material, with examples, to support the auditor’s determination of when it may be necessary for the engagement team to use technological tools.
No technology-specific requirements are proposed, helping the ISAs remain principle-based, flexible, and current in view of rapid technological change.

Facilitates appropriate use of technological tools in the engagement, ensuring the standards are principles-based and remain relevant in the face of rapid technological advancement, without making the use of technology mandatory.
Supports scalability by providing guidance on how the requirements apply when using technological tools, recognizing the nature and extent of technology use varies across entities, engagements, and firms. Key scalability consideration

Explanatory Memorandum – Section 1-A, paragraphs 43-46 and 60-65.
Conforming and consequential amendments proposed to:
- paragraph ISQM 1.A99A; and
- paragraphs ISA 220.25, A64A-A64B.

Proposed to replace the phrase “automated tools and techniques (ATT)” with “technological tools” throughout the ISQMs and ISAs to clarify that technology is a resource used to perform audit procedures, rather than an auditor procedure itself.
Proposed application material and Appendix 3 of ED-ISA 500 explain how the requirements apply when the auditors use technological tools to design and perform audit procedures to obtain audit evidence.
Proposed conforming and consequential amendments include:
- ISQM1.A99A and ISA 220.A64B: Proposed description of “technological tools”, supported by examples, to explain how these tools, as a subset of technological resources, may facilitate the design or performance of procedures to obtain audit evidence.
- ISA 220.25: Proposed adding specificity about the resources used in engagements, including consideration of technological resources at the engagement level.
- ISA 220.A64B: Proposed adding application material, with examples, to support the auditor’s determination of when it may be necessary for the engagement team to use technological tools.
No technology-specific requirements are proposed, helping the ISAs remain principle-based, flexible, and current in view of rapid technological change.

Facilitates appropriate use of technological tools in the engagement, ensuring the standards are principles-based and remain relevant in the face of rapid technological advancement, without making the use of technology mandatory.
Supports scalability by providing guidance on how the requirements apply when using technological tools, recognizing the nature and extent of technology use varies across entities, engagements, and firms. Key scalability consideration

Explanatory Memorandum – Section 1-A, paragraphs 43-46 and 60-65.
Conforming and consequential amendments proposed to:
- paragraph ISQM 1.A99A; and
- paragraphs ISA 220.25, A64A-A64B.