Message from the AASB Chair: Update re the new auditor reporting standards

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Nov 14, 2018

On November 14, 2018, the AASB Chair, Mr. Ken Charbonneau, issued a message that provides an update re the new auditor reporting standards. The update covers recent decisions and activities of the AASB on these standards. These include: (i) communication of key audit matters for audits of Toronto Stock Exchange (TSX)-listed entities, other than entities required to comply with National Instrument (NI) 81-106, Investment Fund Continuous Disclosure; (ii) auditor’s reports for audits of entities listed in both Canada and the United States (combined reports); and (iii) exposure draft development.

In summary:

Communication of key audit matters

The AASB wants to hear from stakeholders before finalizing the requirements for communication of key audit matters for audits of investment funds - see below re Developing an exposure draft.

Combined reports

The AASB is in discussions with the U.S. securities regulator and the PCAOB to develop a combined report that would be acceptable in both Canada and the United States. Reaching such a conclusion may require changes to CASs. In the meantime, it will not be possible for auditors to issue combined reports for financial statement periods ending on or after December 15, 2018.

Developing an exposure draft

The AASB is working on an exposure draft to be issued in early 2019. It will address remaining issues on communication of key audit matters for audits of listed entities other than those on the TSX and investment funds.

For further details refer to the message from the AASB Chair

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