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 (http://www2.deloitte.com/ca/en/legal/cookies.html) 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.

In Brief – AASB’s Launch of Field Testing on a Proposed Auditing Standard

  • AASB Image

Oct 26, 2017

On October 26, 2017, the Auditing and Assurance Standards Board (AASB) released an overview of the consultation activity focused on field testing the Exposure Draft, Auditing Accounting Estimates and Related Disclosures.

A new and innovative way to obtain input: While the document was out for comment, the AASB coordinated field testing of the proposed new standard – a first for the Board and its stakeholders. This field testing was done in addition to traditional consultation activities to collect input, which included written comment letters from stakeholders and in-person and virtual roundtable sessions.

One of the Board’s strategic priorities is to better engage stakeholders in the standard-setting process, with field testing offering a new and innovative way for the stakeholders to provide input into proposed standards.

Field testing has specific benefits for accounting firms. It allows them to develop a better understanding of how a new standard might affect their current auditing approaches. The process to share experiences with other firms lets participants compare their audit approach with others, and determine whether the way they would address the changes is consistent with colleagues in other firms. Some firms also see it as an alternative to providing a written response letter or attending a roundtable session.

The testing examined whether the proposals could be:

  • clearly understood and consistently interpreted;
  • applied to a wide range of accounting estimates with different characteristics; and
  • usable by various types of practitioners and applicable to organizations of different sizes and in different industries.

Throughout the field testing, participants met with AASB staff and other contributors to discuss the process, explore findings they encountered, identify issues and provide suggestions for improvement in the standard.

Review the publication on the AASB's website.

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.