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Assurance

IAASB releases revised detailed work plan for 2020-2021

May 18, 2020

On May 18, 2020, the International Auditing and Assurance Standards Board (IAASB) issued a Revised Detailed Work Plan for 2020-2021. The Revised Plan reflects the impact of COVID-19 on the Board’s work, its staff capacity to deliver, and the capacity of the IAASB’s stakeholders to participate in consultations and to implement new standards.

For further details refer to the press re­lease and the Revised Plan on the IAASB's web­site.

IAASB Publishes Covid-19-related guidance on Audit Considerations for Subsequent Events

May 15, 2020

On May 15, 2020, the In­ter­na­tional Au­dit­ing and As­sur­ance Stan­dards Board (IAASB) is­sued a Staff Audit Practice Alert, entitled “Subsequent Events in the Current Evolving Environment - Audit Considerations for the Impact of Covid-19”.

Re­view the press re­lease and guid­ance on the IAASB's web­site.

AASB Exposure Draft – Audits of Group Financial Statements (Including the Work of Component Auditors)

May 11, 2020

On May 11, 2020, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing the adoption of ISA 600 (Revised), with appropriate Canadian amendments. Comments are requested by September 11, 2020.

This Exposure Draft consists of:

  • an explanation of why change is needed;
  • key public interest considerations;
  • proposed changes;
  • a link to the IAASB’s Exposure Draft, including its Explanatory Memorandum;
  • a description of the AASB’s process for adopting ISAs;
  • a discussion of proposed significant Canadian amendments; and
  • a proposed effective date.

Review the press release and the Exposure Draft on the AASB's website.

Basis for Conclusions – Identifying and Assessing the Risks of Material Misstatement

May 04, 2020

On May 4, 2020, the Auditing and Assurance Standards Board (AASB) released this document, which summarizes the process the AASB followed in revising CAS 315, Identifying and Assessing the Risks of Material Misstatement.

The AASB did not propose any Canadian amendments in ED-CAS 315, as no situations met the amendment criteria as stated in Appendix 1 to the CPA Canada Handbook – Assurance. Also, there were no public interest considerations identified particular to Canada that would require a Canadian amendment. The Board reviewed the changes made from the Exposure Draft to the final standard and concluded the changes would not require a Canadian amendment. Therefore, CAS 315 contains no amendments to the ISA wording.

Reviews the Basis of Conclusions on the AASB’s website.

IAASB proposes modernization of group audits standard in support of audit quality

Apr 27, 2020

On April 27, 2020, the International Auditing and Assurance Standards Board (IAASB) released the exposure draft of proposed International Standard on Auditing (ISA) 600 (Revised), "Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)". Comments are requested by October 2, 2020.

Proposed ISA 600 (Revised) deals with special considerations for audits of group financial statements (group audits). Group audits are often more complex and challenging than single-entity audits because a group may have many entities or business units across multiple jurisdictions, and component auditors may be involved.

The proposed standard introduces an enhanced risk-based approach to planning and performing a group audit. This approach appropriately focuses the group engagement team’s attention and work effort on identifying and assessing the risks of material misstatement of the group financial statements, and designing and performing further audit procedures to respond to those assessed risks. The proposed standard recognizes that component auditors can be, and often are, involved in all phases of a group audit. In these circumstances, the proposed standard highlights the importance of the group engagement team’s involvement in the component auditor’s work.

In addition, the proposed standard:

  • Clarifies the scope and applicability of the standard.
  • Emphasizes the importance of exercising professional skepticism throughout the group audit.
  • Clarifies and reinforces that all ISAs need to be applied in a group audit through establishing stronger linkages to the other ISAs, in particular to proposed ISA 220 (Revised), ISA 315 (Revised 2019) and ISA 330.
  • Reinforces the need for robust communication and interactions between the group engagement team, group engagement partner and component auditors.
  • Includes new guidance on testing common controls and controls related to centralized activities.
  • Includes enhanced guidance on how to address restrictions on access to people and information.
  • Enhances special considerations in other areas of a group audit, including materiality and documentation.

Review the press release and exposure draft on the IAASB's website.

IAASB issues support material for audit documentation when using automated tools and techniques

Apr 23, 2020

On April 23, 2020, the Technology Working Group (TWG) of the International Auditing and Assurance Standards Board (IAASB) released non-authoritative support material related to the auditor’s documentation when using automated tools and techniques (ATT), such as data analytics, robotics automation processes or artificial intelligence applications.

The publication intends to assist auditors in understanding how the use of ATT during an audit engagement may affect the auditor’s documentation in accordance with International Standard on Auditing (ISA) 230, Audit Documentation, and the documentation requirements of other relevant ISAs.

The publication does not constitute an authoritative pronouncement of the IAASB, nor does it amend, extend or override International Standard on Quality Control (ISQC) 1 or the ISAs, the texts of which alone are authoritative. Reading the publication is not a substitute for reading ISQC 1 or the ISAs.

Review the press release and publication on the IAASB's website.

PCAOB posts request for comment, seeks stakeholder input on critical audit matters

Apr 17, 2020

On April 17, 2020, the Public Company Accounting Oversight Board (PCAOB) released a Request for Comment from the Office of Economic and Risk Analysis, which seeks input from audit firms, preparers, audit committees, investors, and other financial statement users to inform the interim analysis of the Critical Audit Matter (CAM) requirements.

The PCAOB are mindful of the many challenges related to COVID-19 that stakeholders are dealing with at this time. To provide additional time for interested parties to share feedback, they extended the comment period from 30 to 60 days. Comments are requested by June 15, 2020.

Additional information on their interim analysis and specific questions for consideration are detailed in the Request for Comment.

Review the press release on the PCAOB's website.

Spotlight on IAASB's future projects and priorities: A discussion with the IAASB Chair and Deputy Chair, Part 3

Apr 16, 2020

On April 16, 2020, the International Auditing and Assurance Standards Board (IAASB) released a third video in their series, where the Chair of the IAASB, Tom Seidenstein and Deputy Chair, Fiona Campbell discuss the scalability of audit standards, the challenges for small and medium firms and SME audits, and the overall complexity of standards, all of which are the focus of the IAASB’s "Audits of Less Complex Entities" working group.

Watch the video on the IAASB's website.

Tom Seidenstein speech: A time to rise collectively to the challenge and restore confidence

Apr 14, 2020

On April 14, 2020, the International Auditing and Assurance Standards Board (IAASB) released a speech by Tom Seidenstein, IAASB Chair, on the impact of the COVID-19 pandemic on reporting and assurance.

His speech focused on three areas:

  • working together on both national and international levels, standard-setters, regulators, accounting and audit practitioners, preparers, and other stakeholders can make a meaningful difference in helping the economy get back on its feet;
  • the IAASB stands ready to support the public interest and the external reporting community. We will create targeted guidance, where appropriate, adapt our ways of working to be flexible to rapidly changing circumstances, and coordinate with key parties; and
  • a few areas of our standards merit special consideration by the profession. These include going concern, auditor reporting, and auditing estimates.

Review the full speech on the IAASB's website.

Spotlight on IAASB's future projects and priorities. A discussion with the IAASB Chair And Deputy Chair, Part 2

Apr 09, 2020

On April 9, 2020, the International Auditing and Assurance Standards Board (IAASB) released a second video in their series, where Chair of the IAASB, Tom Seidenstein and Deputy Chair, Fiona Campbell discuss the scalability of audit standards, the challenges for small and medium firms and SME audits, and overall complexity of standards, all of which are the focus of the IAASB’s "Audits of Less Complex Entities" working group.

Watch the video on the IAASB's website.

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