Requirements to communicate key audit matters are coming in Canada

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Nov 14, 2018

On November 14, 2018, the Auditing and Assurance Standards Board AASB) released a message from the AASB Chair noting that confusion could be caused if communication of key audit matters was required in Canada at a different date than the similar concept is effective for most issuers in the United States. So the AASB decided that requirements to communicate key audit matters in Canada for certain entities will have the same effective date – December 15, 2020. However, the requirements can be adopted early.

The AASB also reassessed their tentative conclusion that communication of key audit matters will first be required for audits of all TSX-listed entities. To make this decision, they considered:

  • the PCAOB exemption on critical audit matter reporting for audits of investment companies; and
  • the input the Board received from certain Canadian stakeholders in the investment funds industry.

They also recognize that listed and unlisted investment funds in Canada are required to comply with NI 81-106.

Review the Message from the Chair on the AASB's website.

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