At its meeting on January 24, 2024, the AASB discussed issues related to the project to develop a Canadian Standard on Related Services (CSRS) on Compilation Engagements on Future-oriented Financial Information that will replace Assurance and Related Services Guideline 16, Compilation of a Financial Forecast or Projection. Key issues discussed included: (a) revisions to the definitions of “hypotheses”, “hypothetical assumptions”, and “projection”, and how these changes enhance the interconnectivity of those terms; (b) whether there should be a requirement to disclose the purpose of the projection and, if so, what form such disclosure may take; (c) the proposed reporting requirements and illustrative compilation engagement reports; and (d) whether the proposed CSRS should include a requirement for the practitioner to request a written representation letter from management.

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

At its meeting on January 24, 2024, the AASB discussed issues related to the Canadian exposure draft of CAS 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. Key issues discussed included: (a) the International Auditing and Assurance Standards Board’s (IAASB) approved the exposure draft of ISA 240 (Revised) and the conforming and consequential amendments; (b) the Canadian wraparound document; and (c) the other Canadian exposure draft considerations, including Canadian amendments, the exposure period, and compliance with the Board’s due process. The AASB unanimously approved the Canadian exposure draft. The Board expects to issue it in early March 2024, with comments due by early May 2024.

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

At its meeting on January 24, 2024, the AASB discussed issues regarding the Canadian exposure draft related to the IAASB’s proposed narrow-scope amendments to International Standards on Quality Management and International Standards on Auditing. Key issues discussed included: (i) the public interest considerations of not adopting the IAASB’s proposed narrow-scope amendments at this time; (ii) the IAASB’s proposed narrow-scope amendments to its review engagement standard; (iii) the Canadian wraparound document, including the questions; and (iv) the other Canadian exposure draft considerations, including the exposure period, the targeted outreach plan, and compliance with the Board’s due process. The AASB, the Public Trust Committee (PTC) and its Independence Standing Committee (ISC) recognize the importance of coordination and collaboration to ensure that the Canadian Independence Standards and the Board’s standards are interoperable and not in conflict. Recognizing the ISC’s role in defining “public interest entity” in the Canadian context, the Board sees merit in deferring the consideration of adopting the IAASB’s narrow-scope amendments until the PTC has completed its due process to finalize its “public interest entity” definition for the Canadian Independence Standards. This deferral allows the Board to evaluate the final updates to the Canadian Independence Standards, once approved by the PTC, and their interoperability with the IAASB’s narrow-scope amendments. The AASB unanimously approved the Canadian exposure draft proposing not to adopt the IAASB revisions at this time. The Board expects to issue the exposure draft in late February 2024, with comments due by April 8, 2024.

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