At the AASOC meeting on July 5, 2018, Mr. Ken Charbonneau, Chair of the AASB, reported that the Board continues to discuss the staggered implementation of reporting key audit matters in Canada. In the United States, he noted that the PCAOB has decided to exempt investment funds from critical audit matter reporting requirements. The Board debated deferring Canadian investment funds from reporting key audit matters. It did not decide on this matter at its June meeting. It has requested more information on how the PCAOB made its decision to exclude investment funds and further research on what other jurisdictions are doing related to this issue. Staff will also discuss the matter with the Chief Accountants of the CSA and the OSFI. One member of AASOC recommended the Board also discuss this matter with the Alberta and B.C. Securities Commissions. Another AASOC member said that as soon as there is a deferral or exemption for one industry, others may also request consideration. Mr. Charbonneau acknowledged that the goal of reporting key audit matters is to create better communication and provide insight into audit quality. It is important for the AASB to be cautious when considering deferrals or exemptions.

Review the minutes on the AASOC's Web site.