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2020

AASB Exposure Draft – Audits of Group Financial Statements (Including the Work of Component Auditors)

May 11, 2020

On May 11, 2020, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing the adoption of ISA 600 (Revised), with appropriate Canadian amendments. Comments are requested by September 11, 2020.

This Exposure Draft consists of:

  • an explanation of why change is needed;
  • key public interest considerations;
  • proposed changes;
  • a link to the IAASB’s Exposure Draft, including its Explanatory Memorandum;
  • a description of the AASB’s process for adopting ISAs;
  • a discussion of proposed significant Canadian amendments; and
  • a proposed effective date.

Review the press release and the Exposure Draft on the AASB's website.

AASB Exposure Draft – Conforming amendments to Canadian standards resulting from IAASB conforming amendments to IAASB International Standards as a result of the revised IESBA Code

Jan 17, 2020

On January 17, 2020, the Auditing and Assurance Standards Board (AASB) issued an Exposure Draft proposing to adopt, with appropriate amendments, proposed revisions to International standards issued by the International Auditing and Assurance Standards Board (IAASB). Comments are requested by March 27, 2020.

Review the press release and the Exposure Draft on the AASB's website.

Basis for Conclusions – Compilation Engagements

Jan 31, 2020

On January 31, 2020, the Auditing and Assurance Standards Board (AASB) released this document, which summarizes the process the AASB followed in issuing CSRS 4200, Compilation Engagements, and the Board’s conclusions regarding significant comments received in response to its Exposure Draft.

Basis for Conclusions – Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document and Compilation of a Financial Forecast or Projection

May 29, 2020

On May 29, 2020, the Auditing and Assurance Standards Board (AASB) released this document which summarizes the process the AASB followed to include a notice in AuG-6, "Examination of a Financial Forecast or Projection Included in a Prospectus or Other Public Offering Document", and AuG-16, "Compilation of a Financial Forecast or Projection", including the decision not to expose the notice for comment.

Review the Basis for Conclusions on the AASB's website.

Basis for Conclusions – Identifying and Assessing the Risks of Material Misstatement

May 04, 2020

On May 4, 2020, the Auditing and Assurance Standards Board (AASB) released this document, which summarizes the process the AASB followed in revising CAS 315, Identifying and Assessing the Risks of Material Misstatement.

The AASB did not propose any Canadian amendments in ED-CAS 315, as no situations met the amendment criteria as stated in Appendix 1 to the CPA Canada Handbook – Assurance. Also, there were no public interest considerations identified particular to Canada that would require a Canadian amendment. The Board reviewed the changes made from the Exposure Draft to the final standard and concluded the changes would not require a Canadian amendment. Therefore, CAS 315 contains no amendments to the ISA wording.

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

CPAB access to foreign jurisdictions

Mar 31, 2020

On March 31, 2020, the Canadian Public Accountability Board (CPAB) released a list of the foreign Jurisdictions where it has Memorandums of Understanding agreements currently in place or under negotiation.

Review the list on the CPAB's Web Site.

CPAB audit quality insights report: 2019 Annual inspections results

Mar 27, 2020

On March 27, 2020, the Canadian Public Accountability Board (CPAB) released its annual inspections results noting an overall increase in significant findings in the audits of the 35 public accounting firms it inspected in 2019.

All participating audit firms must enhance their commitment to continuous improvement at every level of their organization and embed a culture of quality to deliver consistent, high quality audits.

Review the report on the CPAB's website.

CPAB auditor’s responsibilities related to fraud project

Feb 06, 2020

On February 6, 2020, the Canadian Public Accountability Board (CPAB) released an overview of a project it launched in 2019 to evaluate how auditors are complying with Canadian Auditing Standards and to identify what actions can be taken by all relevant stakeholders to better prevent and detect corporate fraud.

There has been a brighter spotlight on fraud recently in the wake of high-profile corporate failures. A focus internationally has been on how far an auditor’s responsibility extends in detecting fraud in an audit of the financial statements.

Review the overview on the CPAB's website.

CPAB going concern project

Jan 23, 2020

On January 23, 2020, the Canadian Public Accountability Board (CPAB) released an overview of the going concern project it launched in 2019 to enhance our understanding of how auditors approach their work to review management’s assessment of going concern risk and how to better apply best practices.

In the wake of international business failures, regulators and standard setters around the world are exploring whether enough is being done to publicly disclose material uncertainties around going concern.

Review the project overview on the CPAB's website.

IAASB consults on Extended External Reporting (EER) assurance

Mar 13, 2020

On March 13, 2020, the International Auditing and Assurance Standards Board (IAASB) released for feedback it’s non-authoritative EER Guidance. This is in response to organizations that are increasingly reporting about their broader performance or impact (“Extended External Reporting” or “EER”) either voluntarily or as required by law or regulation, and the growing demand for assurance engagements on such reporting. Comments are requested by July 13, 2020.

EER encapsulates many different forms of reporting including, but not limited to, integrated reporting, sustainability reporting and other reporting by entities about financial and non-financial matters, including environmental, social and governance matters, related to an entity’s activities.

The purpose of the IAASB’s Public Consultation on Proposed Guidance, Extended External Reporting Assurance is to promote consistent high-quality application of ISAE 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information so as to:

  • Strengthen the influence of EER assurance engagements on the quality of EER reports;
  • Enhance user trust in the resulting assurance reports; and
  • Engender greater confidence in the credibility of, trust in and reliance upon EER reports by their intended users.

The draft non-authoritative guidance addresses Special Considerations in Performing Assurance Engagements on Extended External Reporting.

Review the press release and guidance on the IAASB's webiste.

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