At its meeting on October 24, 2016, the AASOC discussed how the AASB is responding to public interest considerations, acknowledging that some stakeholders have presented the AASB with opposing views. The AASOC noted that communication to stakeholders is required to increase awareness of this project. The AASB will issue a communication on its planned approach in the near term.

Review the minutes on the AASOC's Web site.

At its meeting on October 24, 2016, the AASB discussed issues related to its project to update the Sections in the CPA Canada Handbook – Assurance dealing with the special circumstances that may apply to the audits of public sector entities. In particular, the AASB focussed its discussion on a new guideline that is being developed to address one part of Section PS 5300. Issues discussed included: (i) the scope of the guideline, in particular that it clearly needs to set out the circumstances under which the guideline would be used; (ii) whether the guideline should focus on reporting or performance of the engagement; (iii) the contents of the auditor’s report; (iv) guidance on modified opinions; (v) guidance on assessing the impact of non-compliance; and (vi) whether the guideline should be developed based on the auditor reporting standards currently in effect or the auditor reporting standards that the AASB expects to adopt in 2017.

Review the minutes on the AASOC's Web site.

At the AASOC meeting on October 24, 2016, the AASB reviewed a project proposal to revise CSAE 3416, Reporting on Controls at a Service Organization. The AASB will base the proposed revisions to CSAE 3416 on revisions made to an equivalent standard issued by the American Institute of Certified Public Accountants. The project will be undertaken in two steps. First, the AASB will issue an interim communication to stakeholders to highlight the key differences that will arise, because the U.S. standard is effective for service auditors’ reports dated on or after May 1, 2017. The second step will involve proposing revisions to CSAE 3416.

At its November 2016 meeting, the AASB will consider the timeline, resources and implications with regard to the IAASB’s standard addressing service organizations.

Review the minutes on the AASOC's Web site.

At the AASOC meeting on October 24, 2016, the AASB discussed issues related to its project to revise Sections 5800, Special Reports - Introduction, 5815, Special Reports — Audit Reports on Compliance with Agreements, Statutes and Regulations, and 8600, Reviews of Compliance with Agreements and Regulations, including: (i) developing two standards to mirror the construct of the umbrella assurance standards; (ii) incorporating the part of Section PS 5300, Auditing for Compliance with Legislative and Related Authorities in the Public Sector, dealing with compliance with specified authorities; (iii) describing clearly what the entity is required to comply with; (iv) concluding in an attestation compliance engagement versus a direct compliance engagement; and (v) using the terms “reasonable assurance” and “limited assurance” versus “audit” and “review”.

Review the minutes on the AASOC's Web site.