At its meeting on March 9-10, 2020, the AASB provided input to the IAASB members from Canada on possible responses to feedback on the IAASB’s Discussion Paper. Matters discussed included:

1. two proposed IAASB work streams to address audits of less complex entities (LCEs);
2. the IAASB’s proposed approach to dealing with specific areas within International Standards on Auditing that are challenging to implement; and
3. whether there are other matters deserving further consideration by the IAASB.

The IAASB plans to discuss the way forward in relation to audits of LCEs at its June 2020 meeting.

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

At its meeting on March 9-10, 2020, the AASB provided input to the IAASB members from Canada on issues related to proposed revisions to ISA 600. Issues discussed included:

1. key terms defined in the standard;
2. proposed scope of the standard;
3. requirements and application material related to materiality; and
4. the length of the exposure draft comment period and the planned outreach activities.

The IAASB expects to approve an Exposure Draft of proposed ISA 600 (Revised) at its March 2020 meeting. The AASB expects to approve its Exposure Draft of proposed CAS 600 (Revised) in April 2020.

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

At its meeting on March 9-10, 2020, the AASB provided input to the IAASB members from Canada on issues related to the IAASB’s project to revise standards for quality management at the firm and engagement level, including engagement quality reviews. Issues discussed related to proposed ISQM 1 included:

1. whether a service provider should be considered as a resource and, therefore, subject to the same requirements as internal firm resources;
2. renaming quality risk considerations introduced in December 2019, including conditions and circumstances, actions and inactions, and events;
3. whether the standard should include examples of how larger firms may apply the requirements, and to examples for smaller firms, in order for firms to compare and contrast;
4. whether specified responses should be included within each component or together in a separate section of the standard; and
5. whether the reference to transparency reports should be in the requirements of the standard or the application material.

Issues discussed related to proposed ISQM 2 included:

1. the cooling-off period for the engagement quality reviewer; and
2. how the firm identifies engagements that should be subject to an engagement quality review.
3. Issues discussed related to proposed ISA 220 (Revised), included:the definition of “engagement team”;
4. links to proposed ISA 600 (Revised) and proposed ISQM 1; and
5. how the standard addresses scalability.

The IAASB expects to approve final proposed ISQM 1, ISQM 2, and ISA 220 (Revised) at its June 2020 meeting. The AASB expects to approve the Canadian equivalent standards at its September 2020 meeting.

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

At its meeting on March 9-10, 2020, the AASB unanimously approved CSRS 4400, including the related conforming amendments to other standards. CSRS 4400 will replace Section 9100 and Section 9110. The AASB unanimously agreed that re-exposing Canadian amendments is not necessary because the amendments relate to applying the quality control standards in Canada to agreed-upon procedure engagements. The nature and reasons for such amendments are established in the Preface of the CPA Canada Handbook – Assurance, and do not affect a practitioner’s compliance with CSRS 4400. Accordingly, the Board concluded that re-exposure would not result in any new information and is not necessary.

CSRS 4400 will be effective for agreed-upon procedures engagements for which the terms of engagement are agreed to on or after January 1, 2022. Once the AASOC confirms that the AASB followed due process with proper regard for the public interest, it is expected that CSRS 4400 will be issued to the CPA Canada Handbook – Assurance in July 2020.

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

At its meeting on March 9-10, 2020, the AASB unanimously approved a notice that will be placed in AuG-6 and AuG-16 This notice was necessary because of the Board’s decision to remove Section 4250 from the CPA Canada Handbook – Accounting and retain the content as non-authoritative guidance for future-oriented financial information in the CPA Canada Standards and Guidance Collection. The AASB unanimously agreed not to expose the notice for public comment because it was developed in response to the AcSB’s decision and there are no other choices for the AASB. Once AASOC confirms that the AASB followed due process with proper regard for the public interest, it is expected the notice in AuG-6 and AuG-16 will be issued to the CPA Canada Handbook – Assurance in June 2020.

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

At its meeting on March 9-10, 2020, the AASB approved AuG-50.The AASB unanimously agreed that re-exposing AuG-50 is not necessary because all changes were made in response to comments raised on exposure and there was extensive outreach with key stakeholders on the changes proposed in the Exposure Draft. Once AASOC confirms that the AASB followed due process with proper regard for the public interest, it is expected that AuG-50 will be issued and effective in the CPA Canada Handbook – Assurance in July 2020.

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