At the AASOC meeting on July 5, 2018, Mr. Ken Charbonneau, Chair of the AASB, highlighted that the Board unanimously approved an exposure draft of Canadian Standard on Related Services (CSRS) 4200, Compilation Engagements, at its June meeting. The exposure draft is expected to be issued in early September 2018 and will have a response deadline in late November 2018.

Mr. Charbonneau explained that the Board expects many responses to this exposure draft since compilations is the key service offering of many practitioners across Canada. The standard introduces new concepts, requires documentation of certain matters and contains increased disclosure requirements.

One AASOC member asked what steps the Board had taken to understand key issues during the exposure draft’s development. It was explained that the Task Force working on this project first developed a statement of principles, which was used to conduct consultations across Canada. The consultations showed there were many diverging views on this topic. While developing the draft standard, the Board conducted an online survey and received more than 800 responses. The draft standard takes this feedback into consideration.

The only challenge is receiving feedback from users of compilation reports. One AASOC member stressed that banks are key users of these reports and, in the past, the costs associated with this service was not a concern. However, with the proposed changes, increased costs may require clarification of what type of report the banks need. Mr. Bruce Winter, Chair of AASOC, noted that he recognized that the Board spends significant time dealing with standards related to audit services, and that compilation engagements are on the opposite end of the assurance spectrum. There are different issues related to this service and the Board will engage different stakeholders in the process. The Board expects significant interest in this standard. AASOC will continue to watch the public interest issues related to this topic.

Review the minutes on the AASOC's Web site.