This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.


"We're really in an audit renaissance" observes Dan Sunderland in a new CAQ video

Mar 02, 2016

On March 2, 2016, the Center for Audit Quality (CAQ) released a new episode in its "Profession in Focus" video series. It features Dan Sunderland, partner at Deloitte & Touche LLP.

Sunderland, who serves as Deloitte’s National Leader of Audit and Assurance Services, touches on the state of auditing, the role of technology, and programs aimed at narrowing the gap between academics and practitioners.

Watch the video on YouTube.

"We're really in an audit renaissance," he observes, a remark expounded on by Cindy Fornelli, Executive Director at Center for Audit Quality, in a subsequent LinkedIn Influencer commentary.

AASB Decision Summary – Auditor Reporting

Oct 03, 2016

On October 3, 2016, the Auditing and Assurance Standards Board (AASB) released an update of its discussions and decisions on the auditor reporting standard at its September 12-13, 2016 meeting.

The AASB discussed issues related to the adoption of ISAs on auditor reporting, as well as views raised by AASOC members at its July 2016 meeting, including:

  • the scoping, and effective dates for the implementation of key audit matters reporting;
  • whether early application should be allowed and, if so, the implications;
  • how to support successful implementation of the standards;
  • timelines for issuance of the standards and related materials to support their implementation; and
  • key messages to highlight in a message from the Chair.

The AASB will continue to discuss these and other issues at its October 2016 meeting. The AASB Chair intends to issue a message to update stakeholders with more details on the progress of this project in late 2016.

Review the summary on the AASB's website.

AASB Operating Plan – 2016-2017

May 13, 2016

On May 13, 2016, the Auditing and Assurance Standards Board (AASB) released its Operating Plan where it sets out its objectives and planned activities along with other initiatives to be undertaken in 2016-2017.

Canadian Auditing Standards
Auditing Accounting Estimates – revisions to CAS 540 Issue an exposure draft following issuance of the IAASB’s exposure draft on ISA 540 (An IAASB exposure draft is planned for December 2016)
Auditor Reporting – new CAS 701 and revisions to various CASs Determine when and how to finalize standards in Canada
Enhancing Audit Quality in the Public Interest (professional skepticism, quality control and group audits) Obtain input from Canadian stakeholders and respond to the IAASB’s Invitation to Comment in May 2016
Financial Statement Disclosures – revisions to various CASs Determine when and how to finalize standards in Canada
Non-compliance with Laws and Regulations – revisions to various CASs Issue revised standards (IAASB approval is planned for June 2016)
Responsibilities Relating to Other Information – revisions to CAS 720 Determine when and how to finalize standards in Canada
Early-stage IAASB initiatives for which IAASB project proposals have not yet been approved including group audits (ISA 600), identifying and assessing the risks of material misstatements (ISA 315), quality control (ISQC 1 and ISA 220) and professional skepticism

Consider and implement approaches for identifying Canadian issues across a broad range of stakeholders

Develop Canadian positions on issues of key interest

Explore the best means of providing input on these issues to the IAASB

Assurance and Related Services Standards (other than CASs)
Agreed-upon Procedures

Participate directly in the IAASB’s project by providing staff support to the IAASB

Obtain input from Canadian stakeholders and respond to the IAASB’s Discussion Paper (The IAASB’s discussion paper is planned for September 2016)

Association Issue a final standard to replace Section 5020
Compilation Engagements Issue an invitation to comment
Future-oriented Financial Information Discuss issues involved in developing an assurance engagement standard
Public Sector Auditing Standards Issue an invitation to comment
Special Reports Issue a re-exposure draft

Review the Operating Plan on the AASB's Web site.


AASB Re-exposure Draft – Use of the Practitioner’s Communication or Name

Mar 08, 2016

On March 8, 2016, the Auditing and Assurance Standards Board (AASB) issued a Re-exposure Draft of a proposed new standard that would replace existing Section 5020, Association. Stakeholders are encouraged to submit their comments by May 13, 2016.

The fundamental principles underlying proposed CSOA 5000, as set out in this Re-exposure Draft, are consistent with those underlying the Exposure Draft.

The changes in this Re-exposure Draft deal primarily with improving the understandability and clarity of the requirements of this CSOA in response to stakeholders’ comments.

Review the Exposure Draft on the AASB's Web site.

AASB Strategic Plan – 2016-2021

Aug 17, 2016

On August 17, 2016, the Auditing and Assurance Standards Board (AASB) released its Strategic Plan for 2016-2021 which outlines its mission, vision, strategic objectives, specific strategies and actions that will guide it in carrying out its standard-setting mandate for this period.

As set out in this Strategic Plan, the AASB plans to continue to set high-quality standards that meet the needs of Canadian stakeholders while focussing on increasing stakeholder engagement.

In addition, on the same date, the AASB issued a staff-prepared Basis of Conclusions document which provides a brief summary of the AASB's objectives in developing its 2016-2021 Strategic Plan, the public exposure and approval steps for this plan and how the AASB dealt with significant matters arising from comments received in response to its Invitation to Comment.

AASOC Announces New AASB Chair, Vice-Chair

Mar 11, 2016

On March 11, 2016, the Auditing and Assurance Standards Oversight Council (AASOC) announced new leadership of the Auditing and Assurance Standards Board (AASB). Effective April 1, 2016 for two-year terms, Darrell Jensen and Fred Pries will act as AASB’s new Chair and Vice-Chair, respectively.

Review the press release on the AASOC's Web site.

AASOC Issues Paper on its Consideration of the Public Interest

Aug 02, 2016

On August 2, 2016, the Auditing and Assurance Standards Oversight Council (AASOC) issued a paper entitled, “AASOC’s Consideration of the Public Interest” AASOC is required to operate in the public interest. Key points outlined in the paper include: who are our public? what are the interests of our public? and how we assess whether an action, decision or policy is in the public interest?

Re­view the paper on the AASOC's Web site.

AICPA Alert Calls Out Audit Risks under New Revenue Rule

Jul 06, 2016

On July 6, 2016, the AICPA issued an Audit Risk Alert entitled “Revenue Recognition: Accounting and Auditing Considerations—2016/17” (the Alert). The Alert is in respect of the new revenue recognition accounting standard, FASB Accounting Standard Update (ASU) No. 2014-09 Revenue Recognition, Revenue from Contracts with Customers (Topic 606). The Alert provides an overview of the new framework for revenue recognition, highlights differences between existing and new requirements, and outlines the many auditing considerations that companies should keep in mind as they adopt the new rule.

While the 110 page Audit Alert should help companies understand the accounting and financial reporting impacts of the new guidance, the real value may be in its focus on helping companies identify where they may have risks of misstatement as a result of adopting the new accounting requirements. A 7-page Protiviti summary of the AICPA alert says preparers and auditors will need to consider whether the company properly applied the new GAAP, whether the company properly applied its own internal accounting policies, the risk of misstatement associated with the nature of the company’s goods and services, and the structure and complexity of the company’s contracts with customers.

AICPA Proposes Criteria for Cybersecurity Risk Management

Sep 19, 2016

On September 19, 2016, the Assurance Services Executive Committee of American Institute of CPAs (AICPA) released two sets of criteria on cybersecurity for public comment, which the institute hopes will start to lay the groundwork for a new set of assurance services.

The first exposure draft, Proposed Description Criteria for Management’s Description of an Entity’s Cybersecurity Risk Management Program, is intended for use by management in designing and describing its cybersecurity risk management program and by public accounting firms to report on management’s description.

The second, Proposed Revision of Trust Services Criteria for Security, Availability, Processing Integrity, Confidentiality, and Privacy, outlines revised AICPA trust services criteria for use by public accounting firms that provide advisory or attestation services to evaluate the controls within an entity’s cyber risk management program, or SOC 2 engagements. Management also may use the trust services criteria to evaluate the suitability of design and operating effectiveness of controls.

Comments on the cybersecurity attestation exposure drafts are due by December 5, 2016.

Review the press release on the AICPA's website.

AICPA Proposes Specific Performance Requirements When An Auditor Is Involved With An Exempt Offering

Jul 13, 2016

On July 13, 2016, the American Institute of CPAs (AICPA) issued an exposure draft which proposes specific performance requirements when the auditor is involved with an exempt offering. Although an auditor is not required to become involved in an offering document except when the benchmarks defining involvement are met, auditors are not precluded from becoming voluntarily involved with such an offering document.

For further details refer to the copy of the exposure draft on the AICPA’s website. Comments are requested by October 13, 2016.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.