Other Canadian Standards

Public Sector Auditing Standards

Summary

The objective of this project is to update the Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities.

Staff Contact(s)

Birender Gill, CPA, CA

Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Completed in 2015

  • Approving project

    Project proposal approved in September 2015

  • Consulting stakeholders

    Exposure Draft of AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements, issued in August 2017

    The Exposure Draft for guidance on performance audits currently being developed

  • Deliberating feedback
  • Final pronouncement

    AuG-49 issued in September 2018

Meeting & event summaries


March 4, 2019

AASB Decision Summary — March 4-5, 2019

The AASB reviewed the draft Assurance and Related Services Guideline (AuG) 50, Conducting a Performance Audit in the Public Sector in Accordance with Canadian Standard on Assurance Engagements (CSAE) 3001. The Board suggested several editorial changes to the draft Guideline.

The Board is expected to approve an exposure draft of AuG-50 at its next meeting.

February 11, 2019

AASB Decision Summary — January 24-25, 2019

The AASB discussed issues related to developing guidance for performance audits in the public sector. This will replace Section PS 5400, Value-for-Money Auditing in the Public Sector; Section PS 6410, Planning Value-for-Money Audits in the Public Sector; and Section PS 6420, Knowledge of the Audit Entity in Planning Value-for-Money Audits in the Public Sector. Issues discussed included:

  • distinction in the guidance between “practitioner” and “legislative auditor”;
  • adapting acceptance and continuance requirements for public sector circumstances;
  • guidance for identifying relevant internal controls;
  • considerations when using the work of experts and consultants; and
  • ·options for addressing subsequent events.

The Board will discuss, and expects to approve, an exposure draft of an Assurance and Related Services Guideline at the March 2019 meeting.

October 15, 2018

AASB Decision Summary — October 15-16 2018

The AASB discussed issues related to the development of guidance for performance audits in the public sector, including:

  • whether to seek additional input from other stakeholders to identify areas to be addressed in this guidance;
  • the amount of detail to be included in the guidance to set out how key requirements of Canadian Standard on Assurance Engagements (CSAE) 3001, Direct Engagements, can be applied to public sector engagements; and
  • whether the form of this guidance should be a Guideline or a standard.

The Board will continue to discuss these, and other issues related to performance audits at a future meeting.

May 3, 2018

AASB Decision Summary – May 3, 2018

The Board discussed consequential amendments to Canadian Standard on Related Services (CSRS) 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement, that would address comments respondents raised on the Exposure Draft of Assurance and Related Services Guideline (AuG) 49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements. The Board supported the proposed amendments, with minor revisions. AuG-49 and the final wording of the consequential amendments will be brought to the Board for approval at a future date.

January 25, 2018

AASB Decision Summary – January 25-26, 2018

The Board reviewed comments received from Canadian stakeholders on the Exposure Draft of AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements. Key issues discussed included:

  • whether to make consequential amendments to CSRS 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement, to address engagements under PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector, paragraphs .17-.24; and
  • the effective date of AuG-49 and whether to allow for early application.

The Board reviewed changes made to AuG-49 in response to the comments received. The final Guideline is anticipated to be approved in the spring of 2018.

September 1, 2017

AASB Decision Summary – September 14-15, 2017

The Board received an update on the activities of the Public Sector Auditing Standards Review Task Force, including:

  • planned outreach activities related to the Exposure Draft of AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements; and
  • the need for guidance related to performance audits in the public sector conducted under CSAE 3001, Direct Engagements.

The Board supported the Task Force’s activities to develop guidance related to performance audits.

June 12, 2017

AASB Decision Summary – June 12-13, 2017

The Board approved a revised exposure draft of AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements. The exposure draft was updated to align with revised CAS 700, Forming an Opinion and Reporting on Financial Statements, which the Board recently issued. The guideline would replace Auditing for Compliance with Legislative and Related Authorities in the Public Sector, paragraphs PS 5300.14-.16. The exposure draft is expected to be issued in July 2017 with a comment deadline of November 10, 2017.

March 6, 2017

AASB Decision Summary – March 6-7, 2017

The AASB reviewed the proposed AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements, and discussed issues including:

  • the scope;
  • the wording of the compliance opinion; and
  • the form of the compliance report.

The AASB unanimously approved the exposure draft of proposed AuG-49.  This guideline would replace Auditing for Compliance with Legislative and Related Authorities in the Public Sector, paragraphs PS 5300.14-.16. The exposure draft is expected to be issued in May 2017 with a response date of August 28, 2017.

January 23, 2017

AASB Decision Summary – January 23-24, 2017

The AASB discussed issues related to developing an assurance and related services guideline to replace Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector. Key issues discussed included the scope of the guideline and elements to be included in the reporting. The AASB plans to approve an exposure draft of the guideline at its March 2017 meeting.

October 17, 2016

AASB Decision Summary – October 17-18, 2016

The AASB discussed issues related to the development of an auditing guideline to replace Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector, including: 

  • the scope of the auditing guideline;
  • appropriate reporting elements to include in the auditor’s report; and
  • illustrative reports to be included.

June 27, 2016

AASB Decision Summary – June 27, 2016

The AASB discussed issues related to compliance audits in the public sector.  The AASB agreed to develop a new assurance and related services guideline to address material contained in Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector.

March 7, 2016

AASB Decision Summary – March 7- 8, 2016

The AASB discussed issues related to its project to revise Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors, including:

  • confirmed the need to maintain a compliance auditing standard for the public sector;
  • whether further guidance on identifying and assessing internal controls under CSAE 3000 and 3001 is needed; and
  • stakeholder demands for guidance related to value-for-money audits.

The AASB decided that the Public Sector Auditing Standards Review Task Force should continue to explore the best means of incorporating public sector auditing standards into the Handbook for discussion at a future meeting.

September 16, 2015

AASB Decision Summary – September 16-18, 2015

The AASB unanimously approved a project proposal to revise Sections in the Handbook dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors. The project will:

  • validate the need for the Sections;
  • align the Sections with CSAE 3000, Attestation Engagements Other than Audits or Reviews of Historical Financial Information, and CSAE 3001, Direct Engagements;
  • update the terminology in the Sections to represent current public sector practices; and
  • revise and present any new material developed in the clarity format.

June 8, 2015

AASB Decision Summary – June 8-9, 2015

The AASB considered the Sections in the CPA Canada Handbook – Assurance dealing with the special circumstances that may apply to the audits of public sector entities undertaken by legislative and other external auditors and whether these Sections should be revised or withdrawn. The AASB tentatively concluded that there is evidence of a need to retain and update some of these standards. The AASB asked that a project proposal setting out an approach to review and update the standards be presented to the AASB for approval at its September 2015 meeting.

News


September 4, 2018

News

Basis for Conclusions — AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements.

September 4 , 2018. This is a summary of the process followed in developing the Guideline and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.

June 29, 2018

News

AASB approves Assurance and Related Services Guideline (AuG) 49- June 29, 2018

The Board unanimously approved new Assurance and Related Services Guideline (AuG) 49, Reporting on compliance with specified authorities for transactions coming to the auditor’s notice during the audit of financial statements.

The Board also approved related consequential amendments to Canadian Standard on Related Services (CSRS) 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement.

The Board concluded that changes made in finalizing the guideline were not significantly different from the proposals in the Exposure Draft and determined that re-exposure is not needed. The new guideline will be effective for reports dated on or after April 1, 2019, with early application permitted. The guideline is expected to be included in a Handbook update in September 2018.

August 1, 2017

News

AASB Exposure Draft – Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice During the Audit of Financial Statements

August 1, 2017. The AASB has issued an Exposure Draft of a proposed new guideline that would replace an existing Standard. The guideline deals with reporting on compliance with specified authorities for transactions coming to the auditor’s notice during the audit of financial statements. Stakeholders are encouraged to submit their comments by November 28, 2017.

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.