At its meeting on February 16, 2021, the AASB discussed the IAASB’s Advisory Group’s (Advisory Group) recent work. During the Board’s previous activities, stakeholders identified several matters in archived CAS 315, Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment, that were challenging to apply in audits of LCEs. The Advisory Group examined whether these matters would be addressed in extant CAS 315, Identifying and Assessing Risks of Material Misstatement, and the related implementation guidance CPA Canada is developing. The Board concluded that the matters will be addressed appropriately. The AASB discussed the next steps it should take in Canada to address areas of the other CASs that are difficult to apply in audits of LCEs.

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