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 Standards on Quality Management
Quality Management – Conforming Amendments
The AASB discussed issues related to the proposed conforming amendments to Other Canadian Standards set out in the Exposure Draft, “Quality Management – Conforming Amendments to Other Canadian Standards.”
The AASB is expected to approve the final conforming amendments at an upcoming meeting.
Other Canadian Standards
Audits of Less Complex Entities
The AASB reviewed a draft response letter to the International Auditing and Assurance Standards Board’s Exposure Draft, “Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).”
The response letter will be submitted by the comment deadline of January 31, 2022.
Future-oriented Financial Information (FOFI)
The AASB discussed issues related to the development of a new Canadian Standard on Related Services on the compilation of FOFI. Key issues discussed included:
- the principles essential for compiled FOFI not to be misleading;
- engagement acceptance when compiled FOFI is intended for general use; and
- distinguishing between a forecast and projection.
Other
AASB 2021-2022 Performance Assessment
The AASB reviewed the draft 2021-2022 Performance Assessment, which included the projected results against planned activities set out in the 2021-22 Annual Plan, for the year ended March 31, 2022.
The AASB will review the final Performance Assessment at the March 2022 meeting.
AASB Annual Plan 2022-2023
The AASB reviewed a draft of its 2022-2023 Annual Plan.
The AASB will review and approve the final 2022-2023 Annual Plan at its March 2022 meeting.
Technology
The AASB discussed the following topics related to the Technology Framework project:
- the scope;
- a gap analysis comparing current activities to the scope; and
- potential activities relating to Technology to be included in the 2022-23 Annual Plan.
Independent Review Committee on Standard Setting
The AASB received a presentation on the Consultation Paper by the Independent Review Committee on Standard Setting in Canada. It reviews key matters related to the governance and structure for establishing Canadian accounting, auditing, and assurance standards, and identifies what might be needed for the future – including sustainability standards.