At its meeting on November 30/December 1, 2020, the AASB provided input to the International Auditing and Assurance Standards Board (IAASB) members from Canada on the IAASB Working Group’s project proposal to revise International Standard on Auditing (ISA) 500, Audit Evidence.  Key issues discussed included: (i) developing a set of factors in relation to, or attributes of, information for auditors to use when considering information to use as audit evidence; (ii) differentiating the auditor’s work effort in relation to information to use as audit evidence; and (iii) introducing and defining the concept of persuasive audit evidence.

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At its meeting on November 30/December 1, 2020, the AASB provided input to the IAASB members from Canada on the IAASB Working Group’s project proposal to develop a separate standard for audits of less complex entities; and specific considerations related to developing a separate standard. Key issues discussed included: (i) the public interest issues and project objectives related to developing a separate standard; (ii) how to apply a separate standard; and (iii) the circumstances that the separate standard should (and should not) cover.

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At its meeting on November 30/December 1, 2020, the AASB provided input to the IAASB members from Canada on issues related to the IAASB’s project to revise ISA 600. Key issues discussed included: (i) clarifying the scope of the proposed standard as it relates to entities with branches or divisions; (ii) explaining the group engagement teams’ determination of components for planning and performing the group audit; (iii) enhancing the linkages to ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement; ISA 330, The Auditor’s Responses to Assessed Risks; and ISA 220 (Revised), Quality Management for an Audit of Financial Statements; (iv) strengthening the guidance on involving component auditors and their role in a group audit; and (v) removing the concept of significant components in the proposed standard.

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At its meeting on November 30/December 1, 2020, the AASB provided input to the IAASB members from Canada on issues relating to the IAASB’s revised Non-Authoritative Guidance on Applying ISAE 3000 to Extended External Reporting Assurance Engagements. Key issues discussed included: (i) clarifying in the guidance what audit or assurance standards apply when an audit or review of historical financial information is necessary due to an Extended External Reporting (EER) framework, standard or regulation; and (ii) whether the term “criteria” should be used in the context of identifying reporting topics.

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At its meeting on November 30/December 1, 2020, the AASB reviewed the feedback received from a practitioner’s survey and the outreach conducted with provincial body practice advisers related to AuG-16, Compilation of a Financial Forecast or Projection. The Board discussed public interest issues identified from the outreach, agreeing to consider a project proposal with respect to AuG-16 at a future meeting.

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At its meeting on November 30/December 1, 2020, the AASB discussed Canadian specific issues related to the adoption of International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, as Canadian Standard on Quality Management (CSQM) 1.Key issues discussed included: (i) the scope and effective date of CSQM 1; and (ii) the different forms of implementation guidance that can be developed to address implementation challenges. The AASB expects to approve final CSQM 1, CSQM 2, Engagement Quality Reviews, and CAS 220 (Revised), Quality Management for an Audit of Financial Statements, at its January 2021 meeting.

Review the Executive Summary on the AASB's Web site.