Meeting Minutes
The Auditing and Assurance Standards Oversight Council (AASOC) met on April 9, 2024, and was hosted virtually on Zoom.
Call to Order
An in-camera session for council members was held from 12:00 p.m. to 12:15 p.m. (EST). AASOC Vice- Chair Fred Pries called the meeting to order at 12:15 p.m. (EST).
Approval of Minutes
A minor editorial amendment was made to the December 20, 2023, minutes and approved as amended.
Chair’s Opening Remarks
To begin the meeting, Mr. Pries shared a land acknowledgment. The agenda package included a report highlighting the Independence Standing Committee’s activities and an observer report from Mr. Tambosso.
Performance Review Committee Update
Janet Grove, Chair of the Performance Review Committee, shared an update from the last meeting held on February 21, 2024. The Committee received the AASB 2023-2024 Performance Assessment (9+3 months) for review and the 2024-2025 Annual Plan for comment.
The Committee discussed AASB’s influence at the international standard-setting levels and the importance of understanding the Canadian perspective internationally.
The AASB is on track to accomplish all activities for the year. The report raised no concerns, and the Committee congratulated the Board on its accomplishments.
The 2024-2025 Annual Plan was provided for information. Bob Bosshard, Chair of the AASB, and Karen DeGiobbi, Director of the AASB, expressed confidence in their current resources to achieve the plan. In advance of the meeting, the council conducted an offline fatal-flaw review of the plan and provided feedback to the Board. This feedback was considered by the Board prior to its approval of the 2024-2025 Annual Plan at its March 2024 meeting.
Bob Bosshard and Karen DeGiobbi shared two slides highlighting achievements, including unplanned activities.
The council congratulated the AASB team on its achievements.
AASB Chair’s Report and Update
Mr. Bosshard referred to the report outlining the AASB’s recent activities, which was circulated to the council in advance of this meeting. The report outlined international, domestic, and other topics the Board had discussed since the last AASOC meeting in December 2023.
Mr. Bosshard updated the council on the progress of the International Audit and Assurance Standards Board (IAASB) project to revise International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The AASB approved a Fraud Exposure Draft with a May 6, 2024, comment deadline. The AASB also monitors the IAASB’s project to revise ISA 570 (Revised), Going Concern, and engages with its reference group to review the revisions of the fraud and going concern standards.
The IAASB has created a new initiative called the Integrated Project, which links some existing standards to provide a seamless approach for practitioners’ risk response to support audit opinions.
Mr. Bosshard stated that the AASB is monitoring the IAASB’s narrow-scope maintenance project related to the listed entities and public interest entities. The AASB recognizes the importance of coordination and collaboration with the Public Trust Committee and the Independence Standing Committee to ensure that the Canadian Independence Standards and the AASB’s boards’ standards are interoperable and not conflicting. The board acknowledged there was merit in deferring the consideration of adopting the IAASB’s narrow-scope amendments until the Public Trust Committee has completed the due process to finalize its “public interest entity” definition for the Canadian Independence Standards.
The AASB is monitoring the IAASB’s project to develop the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, which it has proposed to adopt concurrently in Canada as Other Canadian Standard (CSSA 5000).
A Strategic Plan is being developed for 2025-2029. A draft plan will be released for consultation soon.
The council inquired about the Board’s due process followed and the timing of communicating its decision externally to not adopt the IAASB’s ISA for LCE standard. The decision was already posted on the website and is only now being shared with AASOC. Mr. Bosshard stated that Canada is under no obligation to adopt the LCE if it is believed not to be fit for purpose in Canada. However, this does not mean that a Canadian solution won’t be developed. It was noted that these types of discussions are more operational in nature and not topics the new council will be addressing.
NGC Update
Gary Hannaford, Chair of the Nominating and Governance Committee (NGC) shared a report from the NGC recommending the Board Terms of Reference and Due Process Manuals to the council for approval. The Statement of Operating Procedure is considered an internal operational document and is not included for recommendation. These documents will be reviewed every three years going forward. Summary documents were included in the council package.
It was moved by Gary Hannaford, seconded by Neil Sinclair;
Be it resolved:
That the Auditing and Assurance Standards Oversight Council approves the AASB Terms of Reference and Standard-Setting Due Process Manual as presented.
Carried.
There being no further public business, the meeting moved in camera at 1:11 p.m. Guests and observers departed the meeting.
The council reviewed the recommendation to appoint Michelle Balmer as Vice Chair of the AASB in camera.
It was moved by Gary Hannaford, seconded by Donna Bovolaneas;
Be it resolved:
That the Auditing and Assurance Standards Oversight Board approve the appointment of Michelle Balmer as Vice Chair of the AASB from April 1, 2024 and ending March 31, 2025.
Carried.
Adjournment
The meeting concluded with an in-camera session for members only.