At its meeting on June 8-9, 2015, the AASB reviewed comments received from Canadian stakeholders on its Exposure Draft. Responses indicated strong support for the revised Joint Policy Statement. The AASB discussed issues including: (i) how to provide greater clarity in CAS 501 that the revised Joint Policy Statement applies to communications with in-house legal counsel acting in a legal capacity; (ii) whether amendments should be made to address respondents’ concerns that it is not clear what the auditor’s work effort should be when using evidence provided by in-house legal counsel acting in a legal capacity; and (iii) how to appropriately reflect in CAS 501 and the revised Joint Policy Statement the circumstances when an auditor may request communication with legal counsel in situations when there are no claims or possible claims.

Review the executive summary on the AASB's Web site.