Extended External Reporting Assurance

The AASB received an update on the development of extended external reporting (EER) reference materials to support the Board’s EER guidance issued in August 2021. The update discussed the nature of the content and where it would be best located for practitioners.

The AASB provided input on a draft supporting document that will be issued to assist Canadian practitioners in using the IAASB’s “Non-Authoritative Guidance on Applying ISAE 3000 to Extended External Reporting (EER) Assurance Engagements.” This is for engagements performed under Canadian Standard on Assurance Engagements (CSAE) 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information.

The AASB expects to issue the supporting document in the fall of 2021.

The AASB discussed the way forward in Canada for applying the IAASB’s “Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements.”

The AASB decided to issue the IAASB non-authoritative guidance as AASB guidance. The non-authoritative guidance will be accompanied by a supporting document outlining the limited differences in applying Canadian Standard on Assurance Engagements 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information, compared to International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

The supporting document, linking to the non-authoritative guidance, is expected to be issued in August 2021.

The AASB provided input to the IAASB members from Canada on issues relating to the IAASB’s revised Non-Authoritative Guidance on Applying ISAE 3000 to Extended External Reporting Assurance Engagements.

Key issues discussed included:

• clarifying in the guidance what audit or assurance standards apply when an audit or review of historical financial information is necessary due to an Extended External Reporting (EER) framework, standard or regulation; and
• whether the term “criteria” should be used in the context of identifying reporting topics.

The AASB discussed and provided input to the IAASB members from Canada on issues related to the IAASB proposals that address the comments from respondents on the Public Consultation Paper, “Proposed Non-Authoritative Guidance Extended External Reporting (EER) Assurance.”

The AASB reviewed and provided input on the latest draft response letter to the International Auditing and Assurance Standards Board’s (IAASB) Public Consultation, “Proposed Non-Authoritative Guidance Extended External Reporting (EER) Assurance.” The final response letter, reflecting the Board’s input, will be submitted to the IAASB by the comment deadline of July 13, 2020.

The AASB continued discussing its draft response letter to the IAASB Public Consultation Paper, “Proposed Non-Authoritative Guidance Extended External Reporting (EER) Assurance.” The Board will review other sections of the draft response in July 2020 before submitting a final letter to the IAASB in mid-July 2020.

The AASB discussed a portion of its draft response letter to the International Auditing and Assurance Standards Board’s (IAASB) Public Consultation Paper, “Proposed Non-Authoritative Guidance Extended External Reporting (EER) Assurance.” The Board will review other sections of the draft response in June and July 2020 before submitting a final letter to the IAASB in mid-July 2020.

The AASB discussed its approach for responding to the IAASB’s document for comment, “Special Considerations in Performing Assurance Engagements on Extended External Reporting.” The IAASB expects to approve this document at its December 2019 meeting.

The AASB discussed its approach to responding to the IAASB’s Exposure Draft on non-authoritative guidance related to Emerging External Reporting, expected to be issued in January 2020.

The AASB decided to form an Advisory Group to support staff and the Board in reviewing and responding to materials issued by the IAASB. The Advisory Group will help identify key issues related to the evolution of audit in response to environmental changes in Canada.