At its meeting on November 29-30, 2021, the AASB discussed stakeholder feedback on its Exposure Draft. Key issues discussed included: (i) the proposed requirement in Canadian Standard on Related Services 4200, Compilation Engagements, to disclose that the practitioner is a member of a firm that applies Canadian Standard on Quality Management (CSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements; (ii) the effective date of CSQM 1, CSQM 2, Engagement Quality Reviews, and Canadian Auditing Standard (CAS) 220, Quality Management for an Audit of Financial Statements; and (iii) the different forms of implementation guidance that can be developed to address implementation challenges related to new or revised requirements in the Other Canadian Standards.

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

At its meeting on November 29-30, 2021, the AASB provided input to the IAASB members from Canada on the IAASB Working Group’s project proposal to revise ISA 240. Key issues discussed included: (i) strengthening the auditor’s responses to assessed risks of a material misstatement due to fraud; (ii) clarifying the approach to journal-entry testing when considering fraud; (iii) clarifying how performing a robust risk assessment is critical in determining whether the rebuttable presumption of fraud risk in revenue recognition is applicable; and (iv) enhancing the application material in ISA 240 related to fraud considerations for external confirmation procedures. The AASB also discussed the Canadian approach to the Fraud and Going Concern projects.

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At its meeting on November 29-30, 2021, the AASB discussed issues related to the IAASB’s project to revise ISA 600. Key issues discussed included: (i) further clarification required of the actions the group auditor considers when communications from the component auditor are not adequate for the group auditor’s purposes; (ii) clarifying the requirement regarding the group auditor communicating with component auditors matters that the group auditor or component auditor determines to be relevant to the design of responses to the assessed risks of material misstatement; (iii) support for retaining the sentence outlining the expectation that component auditor audit documentation does not need to be replicated in the group auditor file; (iv) a review of the conforming and consequential amendments related to ISA 600; (v) a review of the disposition of comments showing how issues raised in the AASB’s response letter to the ISA 600 exposure draft were addressed; and (vi) implementation risks and plan to develop guidance to support the implementation of CAS 600. The IAASB is expected to approve ISA 600 (Revised) at the December 2021 meeting. The AASB would approve CAS 600 in early 2022.

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

At its meeting on November 29-30, 2021, the AASB received a presentation of feedback received to date in consultations with stakeholders on its Discussion Paper. The Board also discussed its approach to preparing its response to the IAASB Exposure Draft.

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