Other Canadian Standards

Auditor's Consent to the Use of the Auditor's Report Included in a Business Acquisition Report

Summary

The AASB has approved a project proposal to revise the 7000 series of Sections in the Handbook (i.e., Sections dealing with securities regulations and other capital markets matters).

Staff Contact(s)

Chi Ho Ng, CPA, CA

Principal, Auditing and Assurance Standards Board

Meeting & event summaries


August 26, 2016

Message from the Chair – Change to the Effective Date of Section 7170

August 26, 2016. Our Chair, Darrell Jensen, explains a change to the effective date of Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in a Business Acquisition Report.

March 10, 2015

AASB Decision Summary – March 9-10, 2015

The AASB unanimously approved Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Business Acquisition Reports. Section 7170 will replace Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

The AASB concluded that changes made in finalizing the standard were not significantly different from the proposals in the Exposure Draft and, therefore, no re-exposure is necessary.

The final standard will be effective for an auditor’s consent to the use of an auditor’s report in a business acquisition report issued on or after June 1, 2016 and is expected to be issued in June 2015.

September 9, 2014

AASB Decision Summary – September 8-9, 2014

The AASB unanimously approved an exposure draft of proposed Section 7170, Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition Report. Section 7170 would replace Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents. The exposure draft is expected to be issued in late October 2014.

June 10, 2014

AASB Decision Summary – June 9-10, 2014

The AASB discussed issues related to revising and clarifying Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents, including, with respect to the auditor of the acquired entity:

  • the procedures that would be performed on interim financial statements included in a business acquisition report;
  • obtaining management representations related to the period between the date of the auditor’s report on the most recent audited financial statements of the acquired business included in the business acquisition report and the date of the auditor’s consent;
  • the auditor’s responsibilities when the auditor becomes aware of a material inconsistency between other information in the business acquisition report and the financial statements of the acquired business that may have an impact on the financial statements and the auditor’s report;
  • the auditor’s responsibilities with regard to the accurate reproduction of audited financial statements, and interim financial statements of the acquired business if the auditor has previously reported on them, in the business acquisition report; and
  • the form and content of the proposed auditor’s consent.

The AASB plans to discuss a draft exposure draft at its September 2014 meeting, with a goal of approving an exposure draft in 2014.

January 21, 2014

AASB Decision Summary – January 20-21, 2014

The AASB discussed issues related to revising and clarifying Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents, including:

  • narrowing the scope to deal with business acquisition reports, as other designated documents would be covered by revised standards on association;
  • obtaining management representations relating to intervening period events;
  • the procedures that would be performed on interim financial statements included in a business acquisition report; and
  • the content of the proposed auditor’s consent.

The AASB plans to discuss a draft exposure draft at its June 2014 meeting, with a goal of issuing an exposure draft in 2014.

January 18, 2011

AASB Decision Summary – January 17-18, 2011

The AASB approved a project proposal to revise the 7000 series of Sections in the CICA Handbook – Assurance (i.e., Sections dealing with securities regulations and other capital markets matters).

News


July 2, 2015

Basis for Conclusions

Basis for Conclusions – Section 7170, Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition Report

July 2, 2015. This document summarizes the process followed in developing this standard and the conclusions reached by the AASB regarding significant comments received in response to its Exposure Draft.

October 23, 2014

News

Exposure Draft – Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition Report

October 23, 2014. The AASB has issued an Exposure Draft of a proposed new standard that would replace existing Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents. Stakeholders are encouraged to submit their comments, on the form provided, by January 30, 2015.

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.