At its meeting on June 12-13, 2023, the AASB discussed the following key issues discussed included: the proposed approach to developing non-authoritative guidance to support the proposed ISA for LCE, including the nature and content of such guidance and whether the proposed ISA for LCE should reference such guidance; the proposed approach to addressing the ISA 800 series of standards; how common it is for LCEs to use a service organization and whether the proposed ISA for LCE should address the auditor’s use of a report on the description, design, or operating effectiveness of controls at a service organization; the content of Part 6, including where changes to requirements or additional essential explanatory material (EEM) may be needed to address: the use of analytical procedures as risk assessment procedures; the description of components of the entity’s system of internal control; the use of commercial accounting packages; and the requirement related to the presumption of fraud risk in revenue recognition; the content of Part 7, including where changes to requirements or additional EEM may be needed to address: incorporating an element of unpredictability in audit procedures; audit sampling; and journal entry testing.

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

At its meeting on June 12-13, 2023, the AASB the following key issues: the proposed final revisions to ISA 700 (Revised), including revisions to application material supporting the conditional requirement for the auditor to disclose the independence requirements applied; and the proposed final revisions to ISA 260 (Revised), including the new requirement for the auditor to communicate with those charged with governance, the independence requirements applied, regardless of whether they were differential independence standards. It also discussed whether any Canadian amendments should be made when adopting the revisions in the equivalent Canadian Auditing Standards (CASs). After discussing the feedback received on its Exposure Draft and the final revisions proposed by the IAASB, the AASB intends to adopt the IAASB’s revisions without Canadian amendments. The AASB plans to approve final revisions to the CASs in September 2023.

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At its June 12-13, 2023, meeting, the AASB discussed issues related to the IAASB proposed revisions to ISA 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. Key issues discussed included:

• the definition of fraud and applicability of examples used;
• the application of a fraud lens on risk identification and assessment;
• the work effort requirement when fraud or suspected fraud is identified; and
• transparency of disclosure of significant fraud risks as key audit matters.

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

At its meeting on June 12-13, 2023, the AASB discussed the following key issues discussed included: the full proposed ISSA 5000, including illustrative assurance reports and the proposed conforming and consequential amendments arising from ISSA 5000; how the IAASB Task Force addressed substantive matters related to proposed ISSA 5000, including: the concepts of sustainability matters, sustainability information, and disclosures and their interoperability within the standard; the concepts of “double materiality”, more than one materiality for the same assurance engagement, and differentiating the concept of materiality applied by the entity (e.g., materiality process), and the practitioner’s consideration or determination of materiality (engagement materiality); the convention for the effective date of proposed ISSA 5000; and the relevant matters for the Explanatory Memorandum to accompany the exposure draft of the proposed ISSA 5000.

It also discussed the Canadian issues pertaining to the exposure draft of the proposed Canadian Standard on Sustainability Assurance, such as: the exposure period; any possible Canadian amendments; any questions to include in the Canadian Exposure Draft; and the planned outreach with interested and affected parties.

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