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.
Assurance and Related Services Standards (other than CASs)
Future-oriented Financial Information
The AASB discussed the way forward in revising two existing Assurance and Related Services Guidelines (AuGs):
- AuG-6, Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document, and
- AuG-16, Compilation of a Financial Forecast or Projection.
The AASB decided that its priority should be to develop a project proposal to revise AuG-16, given the Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements issued in February 2020. The Board agreed that staff perform preliminary research and information gathering to identify the public interest issues to consider when revising the Guideline.
A project to revise AuG-6 will be considered later.
Other
Emerging Technology
The AASB discussed its current and planned activities in support of its 2020-2021 Annual Plan relating to emerging technology. The Board discussed potential topics relating to emerging technology for discussion at its future meetings.
Extended External Reporting
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.
Fraud and Going Concern
The AASB received an update on various activities being undertaken in Canada and internationally on fraud and going concern. The Board also discussed planned activities, including outreach activities in the fall of 2020. These activities are designed to inform the Board about stakeholders’ needs and expectations, and to provide input on future IAASB discussions related to fraud and going concern.
Understanding Evolving Needs of Stakeholders
The AASB provided input on a summary of current Canadian trends in providing assurance on information outside the financial statements. The Board also discussed planned activities and proposed next steps in addressing priority areas. Priority areas were identified as topics where there may be a need for a standard or guidance to assist practitioners in providing assurance on information outside the financial statements.