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2019

AASB Annual Plan – 2019-2020

Apr 01, 2019

On April 1, 2019, the Auditing and Assurance Stan­dards Board (AASB) pub­lished its Annual Plan for 2019-2020. This Annual Plan sets out the Board’s key activities in 2019-2020, in order to help it achieve the objectives in its five-year Strategic Plan for 2016-2021.

The AASB is in the fourth year of its current Strategic Plan.

As part of its activities in 2020-2021, the AASB plans to:

  • monitor, participate, and respond to international developments, including the Monitoring Group consultation on Strengthening the Governance and Oversight of the International Audit-Related Standard-Setting Boards in the Public Interest;
  • monitor the use of emerging technologies in financial reporting and audit;
  • progress several key audit standards projects, including those relating to the following: auditor reporting (combined reporting and disclosure of the audit engagement partner’s name); considering revisions to CAS 600, Group Audits; issuing the revisions to CAS 315, Identifying and Assessing the Risks of Material Misstatement, and the changes to the Quality Management standards;
  • progress standards for engagements other than audits of financial statements, including those related to the following: approve revised standards for Agreed-upon Procedures; issue a revised standard for Compilation Engagements; issue revised standards for performance audits in the Public Sector; and issue a revised standard on Reporting on Controls at a Service Organization.    

For further details, refer to the Annual Plan on the AASB's web­site.

 

AASB Basis of conclusions re the amendments to paragraph 46 of CAS 700

Mar 29, 2019

On March 29, 2019, the Auditing and Assurance Standards Board (AASB) released its Basis of Conclusions for the recent amendments to the effective date of paragraph 46 of CAS 700, Forming an Opinion and Reporting on Financial Statements.

The Basis for Conclusions has been prepared to make Canadian stakeholders aware of the AASB’s revisions to CAS 700, how the AASB obtained input from stakeholders, and how it dealt with significant matters arising from comments received. It includes background information relating to the reporting requirements for Canadian reporting issuers that are Multijurisdictional Disclosure System filers and the requirements in CAS 700 regarding disclosure of the engagement partner name.

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

AASB defers disclosure of engagement partner name for audits of certain MJDS filers

Feb 15, 2019

On February 15, 2019, the Auditing and Assurance Standards Board (AASB) published an update on the issue of naming the engagement partner on the auditor’s report and why they deferred its application for one year.

Are you an MJDS filer who has audits that comply with both Canadian GAAS and PCAOB accounting standards, or Canadian GAAS only?

The AASB deferred application of paragraph 46 for one year for audits of financial statements conducted in accordance with Canadian GAAS when the name of the engagement partner is submitted on Form AP for filing with the PCAOB. As a result, paragraph 46 does not apply to audits of financial statements of affected filers for periods ending before December 15, 2019. The AASB will monitor and support the activities of stakeholders to resolve the issue during the deferral period.

Review the update on the AASB's website.

AASB Exposure Draft – Communication of Key Audit Matters in the Auditor’s Report

Jan 31, 2019

On January 31, 2019, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing revisions to CAS 700, relating to the communication of key audit matters in the auditor’s report. Comments are requested by May 15, 2019.

Main features of the Exposure Draft

The AASB proposes to expand the requirements for auditors to communicate KAM for audits of complete sets of general purpose financial statements so that they apply to:

  • all entities listed on the TSX, TSXV, NEO and CSE; and
  • all entities required to comply with NI 81-106

Review the Exposure Draft on the AASB's website.

AASB Exposure Draft – Quality Management at the Firm and Engagement Level, Including Engagement Quality Reviews

Apr 05, 2019

On April 5, 2019, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing the adoption of ISQM 1, ISQM 2 and ISA 220 (Revised), with appropriate Canadian amendments, if any. Stakeholders are invited to comment until June 7, 2019.

The AASB proposes, subject to comments received following exposure, to adopt with appropriate amendments:

  • proposed International Standard on Quality Management (ISQM) (formerly International Standard on Quality Control (ISQC)) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements;
  • proposed new ISQM 2, Engagement Quality Reviews;
  • proposed International Standard on Auditing (ISA) 220, Quality Management for an Audit of Financial Statements;

and related conforming and consequential amendments.

Review the Exposure Draft on the AASB’s web­site.

AASB In Brief – A plain and simple overview of the AASB’s exposure draft on Quality Management

Mar 29, 2019

On March 29, 2019, the Au­dit­ing and As­sur­ance Stan­dards Board (AASB) re­leased an In Brief relating to its upcoming exposure draft on Quality Management. The AASB is in the process of developing, and plans to issue, an exposure draft proposing the adoption of ISQM 1, ISQM 2 and ISA 220 (Revised), with appropriate Canadian amendments, if any. The In Brief is intended to provide an overview of the planned exposure draft and the ways stakeholders can provide input.

Access the In Brief on the AASB's web­site.

 

AASB Video – Communicating Key Audit Matters in the Audit Report

Mar 29, 2019

On March 29, 2019, the Au­dit­ing and As­sur­ance Stan­dards Board (AASB) re­leased a video that takes you through the key aspects of the AASB’s January 31, 2019 Exposure Draft, Communication of Key Audit Matters in the Auditor’s Report. Stakeholders are reminded that their responses to the AASB on this important topic are due by no later than May 15, 2019

Access the video on the AASB's web­site.

 

Audit regime in the UK to be transformed with new regulator

Mar 11, 2019

On March 11, 2019, the Business Secretary Greg Clark announced a new enhanced regulator to transform the audit and accounting sector in response to the comprehensive Independent Review led by Sir John Kingman. As per the review’s recommendations, the Financial Reporting Council (FRC) will be replaced with a new regulator called the Audit, Reporting and Governance Authority.

The new regulator will for the first time:

  • be a statutory body with powers such as those to make direct changes to accounts rather than apply to court to do so, and more comprehensive, visible reviews for greater transparency
  • have strategic direction and duties to protect the interests of customers and the public by setting high standards of statutory audit, corporate reporting and corporate governance, and by holding companies and professional advisors to account
  • regulate the biggest audit firms directly (rather than those being delegated)
  • have a new, diverse board and strong leadership to change the culture and rebuild respect of those it regulates

There will also be greater sanctions available in cases of corporate failure, including new powers to require rapid explanations from companies and in the most serious cases publish a report about the company’s conduct and management.

Review the press release on the UK Government's website.

Auditor reporting guide: Reporting implications of Canadian Auditing Standards

Jan 15, 2019

This reporting guide published by CPA Canada aims to promote consistency in the form and content of practitioners' reports by providing guidance with respect to commonly occurring reporting circumstances.

Reporting Implications of Canadian Auditing Standards has been developed by the Task Force on Audit Reporting Implications of the New Canadian Auditing Standards. The material in this guide represents the views of the task force.

Review the guide in our publications section.

Audits of less complex entities

Apr 29, 2019

On April 29, 2019, the International Auditing and Assurance Standards Board (IAASB) published a Discussion Paper, "Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs)". Comments are requested by September 12, 2019.

The IAASB seeks to further understand the challenges of using ISAs in audits of less complex entities—and views about possible actions to address these challenges.

The IAASB recognizes the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the ISAs. Continuing the debate on these strategic issues, the Discussion Paper explores how the IAASB, and others, could further support auditors working in increasingly evolving environments.

Review the press release and Discussion Paper on the IAASB's website.

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