The video series includes the following:

• Overview of Key Changes: Gain an understanding of the critical changes proposed by IAASB Member and Fraud Task Force Chair Julie Corden, a partner with Deloitte Canada. Julie also provides brief background information on why these changes are being proposed.
• Spotlight on Auditor’s Responsibilities: Understand auditors’ responsibilities relating to fraud in an audit. IAASB Senior Manager Nathalie Baumgaertener Dutang explains how the proposed changes make these responsibilities more transparent and practical.
• Auditor’s Response to Fraud or Suspected Fraud: How are auditors and engagement partners being asked to enhance how they respond to fraud or suspected fraud? IAASB Principal Angelo Giardina outlines the new requirements, relocated requirements, and clarifications.
• Enhanced Transparency in the Auditor’s Report: Join IAASB Director Jasper van den Hout to learn more about how the proposed changes will improve transparency in the auditor’s report regarding auditors’ responsibilities relating to fraud as well as fraud-related procedures (i.e., Key Audit Matters related to fraud).

The revisions to ISA 240 represent a substantial enhancement of auditors’ duties concerning fraud. The IAASB urges all stakeholders to provide feedback using the Response Template, which aims to enable organized responses and simplify the collection and analysis of feedback. Stakeholders are welcome to contribute their perspectives by June 5, 2024.

Access the exposure draft on revisions to ISA 240 on the IAASB’s website.

The Staff also identified the financial statements, disclosure controls and procedures and the board’s role in risk oversight as other areas where AI-related disclosures may be required under existing rules.

The staff highlighted the following considerations:

• Whether the use of AI exposes the company to additional operational or regulatory risks, including risks related to data privacy, discriminatory results or bias, IP, consumer protection, regulatory compliance and macroeconomic conditions.
• Whether the company’s disclosure on its use and development of AI and material AI risks are tailored to its facts and circumstances.
• Whether the company has support for its claims when disclosing AI opportunities.
• Whether disclosure of the board’s role in AI oversight is warranted.
• Whether investors would benefit from disclosure of the company’s use of any AI risk management framework—like NIST or any industry-specific guidance (similar to cybersecurity disclosures).
• Whether the company faces risks related to the EU AI Act and whether current general disclosure, if any, should be more tailored to address how a company will be impacted based on its particular facts and circumstances.

Access the workshop video by the SEC.

Inspection results are mixed with inconsistency across all categories of firms. While there was an improvement in the aggregate findings rates at the non-annually inspected firms, the level of findings at many firms remains unacceptably high. CPAB continues to see a strong association between audit quality and robust systems of quality management.

In 2023, CPAB initiated the public release of notable enforcement measures from inspection findings. Additionally, CPAB conducted a public follow-up discussion on regulatory modifications concerning the compulsory sharing of inspection reports with audit committees and the publication of individual firm inspection reports. CPAB anticipates that these adjustments will positively influence audit quality in Canada by offering enhanced transparency to the public regarding our inspection outcomes and the activities of audit firms overseeing Canadian reporting issuers.

Access the 2023 Annual Report on CPAB’s website

The Independent Review Committee on Standard Setting in Canada recommended that an effectiveness review be conducted with the assistance of an independent third party to help streamline and harmonize oversight activities and processes. In response to the results, the Effectiveness Review Joint Taskforce and the current oversight councils approved that a single council be created to oversee standard setting for accounting, audit and assurance, and sustainability.  

This decision consolidates the activities of three oversight bodies – the Auditing and Assurance Standards Oversight Council (AASOC), Accounting Standards Oversight Council (AcSOC), and the Canadian Sustainability Standards Board (CSSB) Implementation Committee – streamlining the processes and activities for accounting, audit, assurance, and sustainability standard setting.

The Oversight Council is effective from April 1, 2024, and will focus its initial work on establishing its operations and governance processes. It will begin its formal oversight work on July 1, 2024. The current oversight bodies will conclude their operations on June 30, 2024.

Access the press release on the FRASCanada website.

The Independent Review Committee on Standard Setting in Canada recommended that an effectiveness review be conducted with the assistance of an independent third party to help streamline and harmonize oversight activities and processes. In response to the results, the Effectiveness Review Joint Taskforce and the current oversight councils approved that a single council be created to oversee standard setting for accounting, audit and assurance, and sustainability.  

This decision consolidates the activities of three oversight bodies – the Auditing and Assurance Standards Oversight Council (AASOC), Accounting Standards Oversight Council (AcSOC), and the Canadian Sustainability Standards Board (CSSB) Implementation Committee – streamlining the processes and activities for accounting, audit, assurance, and sustainability standard setting.

The Oversight Council is effective from April 1, 2024, and will focus its initial work on establishing its operations and governance processes. It will begin its formal oversight work on July 1, 2024. The current oversight bodies will conclude their operations on June 30, 2024.

Access the press release on the FRASCanada website.

The Independent Review Committee on Standard Setting in Canada recommended that an effectiveness review be conducted with the assistance of an independent third party to help streamline and harmonize oversight activities and processes. In response to the results, the Effectiveness Review Joint Taskforce and the current oversight councils approved that a single council be created to oversee standard setting for accounting, audit and assurance, and sustainability.  

This decision consolidates the activities of three oversight bodies – the Auditing and Assurance Standards Oversight Council (AASOC), Accounting Standards Oversight Council (AcSOC), and the Canadian Sustainability Standards Board (CSSB) Implementation Committee – streamlining the processes and activities for accounting, audit, assurance, and sustainability standard setting.

The Oversight Council is effective from April 1, 2024, and will focus its initial work on establishing its operations and governance processes. It will begin its formal oversight work on July 1, 2024. The current oversight bodies will conclude their operations on June 30, 2024.

Access the press release on the FRASCanada website.

The 2022-2025 Strategic Plan outlines five strategic goals and supporting objectives while the Annual Plan includes specific activities that will support the achievement of these objectives.

The strategic goals for 2022 – 2025 are as follows:

• Monitor and understand emerging issues in the changing environment to better anticipate standard setting needs.
• Engage and collaborate with interested and affected parties to understand their needs and expectations.
• Set high-quality standards and guidance that respond to the evolving needs and expectations of interested and affected parties.
• Enhance our standard-setting processes and capabilities to develop timelier solutions.
• Support the effective implementation and application of standards and guidance to enhance consistency and quality in engagement performance.

Access the annual plan on the AASB’s website.

The Independent Review Committee on Standard Setting in Canada recommended that an effectiveness review be conducted with the assistance of an independent third party to help streamline and harmonize oversight activities and processes. In response to the results, the Effectiveness Review Joint Taskforce and the current oversight councils approved that a single council be created to oversee standard setting for accounting, audit and assurance, and sustainability.  

This decision consolidates the activities of three oversight bodies – the Auditing and Assurance Standards Oversight Council (AASOC), Accounting Standards Oversight Council (AcSOC), and the Canadian Sustainability Standards Board (CSSB) Implementation Committee – streamlining the processes and activities for accounting, audit, assurance, and sustainability standard setting.

The Oversight Council is effective from April 1, 2024, and will focus its initial work on establishing its operations and governance processes. It will begin its formal oversight work on July 1, 2024. The current oversight bodies will conclude their operations on June 30, 2024.

Access the press release on the FRASCanada website.

AcSB developed a framework in the 2023-2024 fiscal year to respond to interested and affected parties needing additional guidance when applying Parts II and III of the Handbook. The AcSB will focus in 2024-2025 on implementing this framework.

AcSB will review its standards (ASPE & IFRS) to improve their relevance for users and address feedback on scalability and emerging issues. They will collaborate with the Canadian Sustainability Standards Board (CSSB) and the International Accounting Standards Board (IASB) to ensure Canadian perspectives are reflected in international standards. To further engage with stakeholders, they are planning to increase the number of in-person events, fostering meaningful discussions on critical accounting issues.

Access the annual plan on the AcSB’s website.

AcSB developed a framework in the 2023-2024 fiscal year to respond to interested and affected parties needing additional guidance when applying Parts II and III of the Handbook. The AcSB will focus in 2024-2025 on implementing this framework.

AcSB will review its standards (ASPE & IFRS) to improve their relevance for users and address feedback on scalability and emerging issues. They will collaborate with the Canadian Sustainability Standards Board (CSSB) and the International Accounting Standards Board (IASB) to ensure Canadian perspectives are reflected in international standards. To further engage with stakeholders, they are planning to increase the number of in-person events, fostering meaningful discussions on critical accounting issues.

Access the annual plan on the AcSB’s website.