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Canadian Auditing Standards

Audit Evidence

Summary

The audit environment has changed significantly since Canadian Auditing Standard (CAS) 500, Audit Evidence was issued in 2009.

When the International Auditing and Assurance Standards Board (IAASB) asked stakeholders about the growing use of technology in audit and enhancing audit quality, questions were raised around the world about the reliability of underlying information and the impact of technology on audit evidence. In today’s world, these changes in the audit environment are prompting us to ask:

  • What qualifies as audit evidence?
  • What makes audit evidence reliable?
  • How much audit evidence is needed?
  • How is professional skepticism applied and demonstrated, especially when evidence is inconsistent or contradictory?

Staff Contact(s)

Birender Gill, CPA, CA Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Audit Evidence Information Gathering and Targeted Outreach Activities January 2020 – IFAC Member Bodies and NSS comment deadline was April 17, 2020

    The AASB submitted its response to the IAASB’s Information Gathering Paper

    The IAASB deliberated feedback received on the Information Gathering Paper

  • Approving project

    The IAASB approved project proposal in December 2020

  • Engaging Communities

    The IAASB issued Exposure Draft – ISA 500, Audit Evidence on October 23, 2022

    The AASB issued Exposure Draft – “CAS 500, Audit Evidence” on November 23, 2022

  • Deliberating feedback

    The AASB submitted a response to the IAASB’s Exposure Draft – “ISA 500, Audit Evidence

    The IAASB is deliberating feedback on its Exposure Draft – “ISA 500, Audit Evidence” and the AASB is forming Canadian views on key issues identified

  • Final pronouncement

On-demand Webinar – Exposure Draft – CAS 500, Audit Evidence

Watch the recorded webinar for an overview of the proposed changes to CAS 500, Audit Evidence.

News


May 30, 2023

News

AASB Responds to the IAASB’s Exposure Draft of ISA 500, Audit Evidence

The Board recently submitted a response letter to the IAASB on the Exposure Draft, ISA 500, Audit Evidence. Read the response letter to learn more.

December 13, 2022

Webinar, Resource

On-demand Webinar – Exposure Draft – CAS 500, Audit Evidence

Are you interested in hearing about the proposed changes to CAS 500, Audit Evidence? Watch the recorded webinar, hosted by CPA Canada, to learn about the subject from members of the AASB’s Audit Evidence Advisory Group.

November 23, 2022

Document for Comment

AASB Exposure Draft – CAS 500, Audit Evidence

Share your views on the revisions to CAS 500, Audit Evidence. The proposed changes are now available for stakeholders to provide input. Read the full proposed standard and the related conforming and consequential amendments and respond to the Exposure Draft by March 15, 2023.

November 8, 2022

International Activity

IAASB issues Exposure Draft of ISA 500, Audit Evidence

The International Auditing and Assurance Standards Board (IAASB) issued its Exposure Draft of International Standard on Auditing (ISA) 500, Audit Evidence and the related proposed conforming and consequential amendments to other ISAs. The standard provides a “reference framework” for auditors when making judgments about audit evidence throughout the audit. The IAASB invites all stakeholders to comment on the Exposure Draft via the IAASB website. Comments are requested by April 24, 2023.

Meeting & event summaries


January 4, 2024

AASB Decision Summary – December 4-5, 2023

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • the new requirement for when the auditor uses automated tools and techniques for obtaining audit evidence;
  • the conditional requirement related to accuracy and completeness; and
  • the way forward for the project and its completion timeline.

October 10, 2023

AASB Decision Summary – September 12-13, 2023

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • the modernizing of the standard with respect to technology by including a conditional requirement for when the auditor uses automated tools and techniques during the audit;
  • the addition of a definition for persuasiveness in the standard and whether the term needed to be elevated to a requirement;
  • the clarification of how the auditor determines which attributes to consider when evaluating relevance and reliability of information intended to be used as audit evidence;
  • whether to clarify the conditional requirement to consider accuracy and completeness in relation to information generated by the entity only; and
  • whether the stand-back requirement was duplicative with the requirement in ISA 330, The Auditor’s Responses to Assessed Risks.

April 26, 2023

AASB Decision Summary – April 5, 2023

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.

April 4, 2023

AASB Decision Summary – March 13-14, 2023

The AASB reviewed feedback received on the Exposure Draft of the proposed CAS 500, Audit Evidence. Key matters discussed included:

  • the outreach activities completed related to the Exposure Draft;
  • the key issues identified by respondents to the proposed changes; and
  • the proposed direction for responses to the International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft questions.

The AASB will review and discuss a draft of its response letter at its April 2023 meeting.

April 4, 2023

AASB Decision Summary – March 13-14, 2023

The AASB reviewed feedback received on the Exposure Draft of the proposed CAS 500, Audit Evidence. Key matters discussed included:

  • the outreach activities completed related to the Exposure Draft;
  • the key issues identified by respondents to the proposed changes; and
  • the proposed direction for responses to the International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft questions.

The AASB will review and discuss a draft of its response letter at its April 2023 meeting.

November 15, 2022

AASB Decision Summary – October 25, 2022

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) project to revise International Standard on Auditing (ISA) 500, Audit Evidence.

Key issues included:

  • the revisions the IAASB made to the proposed changes to ISA 500 in finalizing its exposure draft; 
  • the conforming and consequential amendments related to ISA 500;
  • the matters related to the Canadian Exposure Draft, including the comment period and fatal-flaw review of the French translation; and
  • a review of the Canadian wrap-around document to be issued as part of the Canadian exposure draft.

The AASB approved the exposure draft, which it expects to issue in late November 2022, with a comment deadline of March 15, 2023.

October 3, 2022

AASB Decision Summary – September 8-9 2022

The AASB discussed issues related to the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues included:

  • a full review of proposed ISA 500;
  • the conforming and consequential amendments related to ISA 500;
  • the exposure period and the proposed implementation period; and
  • the topics to be covered in the explanatory memorandum accompanying the exposure draft of ISA 500.

The IAASB expects to approve an exposure draft at its September 2022 meeting. The AASB would then approve a Canadian exposure draft shortly after.

June 27, 2022

AASB Decision Summary – June 6-7 2022

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) proposed revisions to International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • the objectives of the standard;
  • the definition for audit evidence;
  • the addition of general information technology control examples in the standard;
  • the inclusion of a diagram on ISA 500 in the explanatory memorandum to the exposure draft; and
  • the conforming amendments related to ISA 500.

May 18, 2022

AASB Decision Summary – May 5, 2022

The AASB discussed the International Auditing and Assurance Standards Board’s proposed International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • how persuasiveness relates in determining sufficient and appropriate audit evidence;
  • presenting biases that impact the auditor; and
  • clarifying the use of remote observation as an audit procedure.

April 12, 2022

AASB Decision Summary – March 7-8, 2022

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on issues related to the IAASB’s project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • the first read of the proposed revised requirements;
  • how technology is addressed in the proposed revisions; and
  • potential conforming and consequential amendments as a result of revisions to ISA 500.

The AASB will review the proposed application material to the revised standard at a future meeting.

July 15, 2021

AASB Decision Summary – July 15, 2021

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on issues related to the IAASB’s project to revise International Standard on Auditing (ISA) 500, Audit Evidence. Key issues discussed included:

  • the proposed approach for using the terms “consistent and inconsistent” and “corroborate and contradict” in the context of exercising professional skepticism relating to audit evidence; and
  • including new requirements in the proposed standard to:
    • address professional skepticism, and
    • conclude whether sufficient appropriate audit evidence has been obtained.

December 15, 2020

AASB Decision Summary – November 30 – December 1, 2020

The AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on the IAASB Working Group’s project proposal to revise International Standard on Auditing (ISA) 500, Audit Evidence.

Key issues discussed included:

  • developing a set of factors in relation to, or attributes of, information for auditors to use when considering information to use as audit evidence;
  • differentiating the auditor’s work effort in relation to information to use as audit evidence; and
  • introducing and defining the concept of persuasive audit evidence.

June 8, 2020

AASB Decision Summary – June 8-9, 2020

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) proposals for the way forward in relation to audit evidence, including a proposal to revise International Standard on Auditing (ISA) 500, Audit Evidence.

The IAASB plans to discuss this topic at its June 2020 meeting.

March 9, 2020

AASB Decision Summary – March 9-10, 2020

The AASB discussed the International Auditing and Assurance Standards Board’s (IAASB) information gathering and targeted outreach activities related to audit evidence, as well as the stakeholder consultation plan for Canada. Issues discussed included matters that the Board believes are causing the most difficulties with audit evidence in practice and how these matters can be best addressed.

June 10, 2019

AASB Decision Summary – June 10-11, 2019

The AASB decided to form an advisory group to provide input to the Board on issues as the International Auditing and Assurance Standards Board (IAASB) audit evidence project progresses. The Board discussed the size of the advisory group and relevant experience that members should have. The Board will issue a public call to identify and engage potential members.

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 voting process.