At its meeting on September 13-14, 2018, the AASB provided input to the CPA Canada nominee on the International Auditing and Assurance Standards Board (IAASB) on issues related to the IAASB’s project to:

• revise International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and International Standard on Auditing (ISA) 220, Quality Control for an Audit of Financial Statements, including the:
  • scalability of requirements and application material;
  • interrelationship of components within the system of quality management; and
  • concept of public interest, professional skepticism and professional judgment; and
• develop a new standard, ISQC 2, Engagement Quality Review, including:
  • the objective of the standard; and
  • whether engagement quality reviews should be required for entities with significant public interest.

The IAASB is expected to approve exposure drafts of ISQC 1, ISQC 2 and ISA 220 in December 2018. The AASB would approve Canadian exposure drafts shortly thereafter.

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