This summary of decisions of the Auditing and Assurance Standards Board (AASB) has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects and other matters, which might change after further deliberations by the AASB. Decisions to publish exposure draft and Handbook material are final only after a formal voting process.
Canadian Auditing Standards
Audit Evidence
The AASB discussed comments received on its Exposure Draft, “CAS 500, Audit Evidence” and reviewed a draft of its response letter to the IAASB’s Exposure Draft of ISA 500, Audit Evidence. Key issues discussed included:
- the key overall messages of the response letter;
- how the auditor’s use of technology was addressed in the Exposure Draft and whether the response letter should advocate for non-authoritative guidance outside of the standard, or a specific requirement in the standard; and
- the level of engagement achieved with interested and affected parties, as outlined in the outreach plan for the project.
The AASB will submit its response in advance of the IAASB’s deadline on April 24, 2023.
Going Concern
The AASB approved the exposure draft on Going Concern. Key issues discussed included:
- the exposure period; and
- the planned outreach and engagement with interested and affected parties.
Pending the timing of the IAASB’s issuance of its exposure draft and the comment period, the AASB’s exposure draft is expected to be issued in early June with comments due by mid-July.
Other Canadian Standards
Audits of Less Complex Entities (LCEs)
The AASB reviewed a draft of its response letter to the IAASB’s Exposure Draft, Proposed Part 10, Audits of Group Financial Statements of the Proposed ISA for Audits of Financial Statements of Less Complex Entities. Key issues discussed included:
- the IAASB’s proposal to allow the use of the LCE standard for group audits unless component auditors are involved, except in limited circumstances, and how in practice there are scenarios where judgment is required to determine whether an auditor performing work on a component is a component auditor or a group auditor;
- the meaning in the proposed Authority of the phrase “physical presence is needed for specific audit procedures”, including whether there are circumstances, in addition to those set out in the Authority, where a physical presence is needed; and
- the level of engagement achieved with interested and affected parties, as outlined in the outreach plan for the project.
The AASB will submit its response in advance of the IAASB’s deadline on May 2, 2023.
Other
IAASB Strategy
The AASB received an update on the results of its survey and reviewed a draft of its response letter to the IAASB’s Proposed Strategy and Work Plan. Key issues discussed included:
- the need for the IAASB to decide on an overall strategy for how its suite of sustainability assurance standards will be structured;
- the priority of the revision of ISAE 3000, Assurance Engagements other than Audits or Reviews of Historical Financial Information; and
- the level of engagement achieved with interested and affected parties, as outlined in the outreach plan for the project.
The AASB submitted its response to the IAASB on April 11, 2023.