ThinkTWENTY20

Not surprisingly, Canadian standard-setting initiatives are very much aligned with international ones. For example, in April, the AASB issued an exposure draft that proposes to adopt revised international standards from the IAASB dealing with quality control. The revisions will apply to all standards in the CPA Canada Handbook – Auditing and Assurance, including compilation engagements, and to all sizes of firms.

The Board has also issued its annual plan for the year which notes the following projects under way:

CAS 500, “Audit Evidence”: Provide the Canadian perspective as this project evolves. 

Audits of less complex entities: Submit response to IAASB discussion paper on this topic. 

CAS 701, “Auditor Reporting”: This project involves undertaking research and reaching conclusion on combined report/engagement/partner name. Specifically, the project aims to assess and support the activities of stakeholders to resolve the engagement partner name deferral. As well, it will reach a decision on whether the Board can design a combined report, including the engagement partner name, that would be accepted by the U.S. Public Company Accountability and Oversight Board and the Securities and Exchange Commission.  It would then issue the appropriate revisions to the standard.

Data analytics: Like IAASB, Canada’s AASB is looking at the whole issue of data analytics and how to make effective use of this emerging technology. The idea is to provide the Canadian perspective on this issue as this project evolves. To that end, an IAASB member has been invited to provide an update to the AASB. 

CAS 600, “Group Audits”: Provide the Canadian perspective as this IAASB project evolves. 

CAS 315, “Identifying and Assessing the Risks of Material Misstatement”: Make revisions to CAS 315 and issue standards according to normal due process. Complete a implementation risk analysis and support the development of implementation guidance. 

Agreed-upon Procedures: Here the aim is to replace Sections 9100 and 9110 of the Handbook – Auditing and Assurance with the IAASB’s CSRS 4400, then approve standard, complete the implementation risk analysis and support the development of implementation guidance. 

Compilation Engagements: The plan is to update Section 9200 Of the Handbook – Auditing and Assurance issue the standard, complete the implementation risk analysis and support the development of implementation guidance. 

Extended External Reporting: Provide the Canadian perspective as this IAASB project evolves. Considering the IAASB approach, we will talk to stakeholders to find out the relevance of this initiative in a Canadian context so the AASB is positioned to respond appropriately to the planned international exposure draft.