At its meeting on June 6-7, 2022, the AASB discussed issues related to the IAASB’s narrow-scope maintenance of standards project on listed entity and public interest entity. The project addresses the IAASB’s actions with respect to recent revisions to the IESBA Code that result from the IESBA project on the definitions of listed entity and public interest entity. Key issues discussed included: (i) the IAASB’s proposed revisions to ISA 700 (Revised) and ISA 260 (Revised); (ii) the content of the IAASB’s draft exposure draft, including the proposed approach to revisions, along with the alternative approach set out in the draft explanatory memorandum; and (iii) the IAASB’s approach to possible revisions to ISRE 2400 (Revised). The AASB also discussed Canadian implications of the IAASB’s project. Canadian practitioners are required to follow Codes of Professional Conduct set by provincial accounting bodies. The Canadian Codes are different from the IESBA Code. They do not use the term “public interest entity” or require the auditor to publicly disclose when differential independence requirements applicable to certain entities have been applied on an audit. Key Canadian issues discussed included: (i) whether the AASB should propose Canadian amendments in adopting the IAASB’s proposed revisions to ISA 700 (Revised) and ISA 260 (Revised); (ii) whether there are any implications to CSRE 2400, which is not adopted from ISRE 2400 (Revised); and (iii) the content and timing of a Canadian exposure draft. The IAASB expects to approve an exposure draft at its June 2022 meeting. The AASB would then approve a Canadian exposure draft shortly after.

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