Assurance on Compliance with Agreements, Statutes and Regulations (Amendments to Sections 5800, 5815, and 8600) [Completed]
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Effective date: |
The new standards CSAE 3530, Attestation Engagements to Report on Compliance, and CSAE 3531, Direct Engagements to Report on Compliance, are effective for compliance reports dated on or after April 1, 2019. |
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Included in the CPA Canada Handbook – Assurance: |
March 2018 |
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Last updated: |
March 2018 |
Overview
Public accountants are often asked to provide assurance on an entity’s compliance with statutes, regulations and agreements. Section 5800, Special Reports — Introduction, Section 5815, Special Reports — Audit Reports on Compliance with Agreements, Statutes and Regulations, and Section 8600, Reviews of Compliance with Agreements and Regulations, were written many years ago. The AASB concluded that they need to be updated and drafted in the clarity format.
In March 2018, at the completion of this project, the AASB issued CSAE 3530, Attestation Engagements to Report on Compliance, and CSAE 3531, Direct Engagements to Report on Compliance. The new standards replace:
- Section 5800, Special Reports — Introduction
- Section 5815, Special Reports — Audit Reports On Compliance With Agreements, Statutes And Regulations; and
- Section 8600, Reviews Of Compliance With Agreements And Regulations.
The standards also replace Auditing For Compliance With Legislative And Related Authorities In The Public Sector, paragraphs PS 5300.11-.13, addressing engagements that require an auditor, depending on the audit mandate, to express an opinion on whether an entity complied with specified authorities or whether its transactions were carried out in compliance with specified authorities.
CSAE 3530 is applicable to attestation engagements to report on management's statement of an entity's compliance with specified requirements, and CSAE 3531 is applicable to direct engagements to report on an entity's compliance with specified requirements.
CSAE 3530 and CSAE 3531 set out requirements related to:
- acceptance and continuance;
- planning and performing the engagement;
- obtaining evidence;
- forming the assurance conclusion; and
- preparing the practitioner's report on compliance.
Differences in wording between CSAE 3530 and CSAE 3531 relate only to differences between the performance of an attestation compliance reporting engagement and the performance of a direct compliance reporting engagement.
Other developments
March 2018
On March 1, 2018, the two new standards, CSAE 3530, Attestation Engagements to Report on Compliance, and CSAE 3531, Direct Engagements to Report on Compliance, were issued to the CPA Canada Handbook – Assurance.
On March 1, 2018, the AASB issued the Basis for Conclusions, which is a summary of the process it followed in developing the standards and the Board’s conclusions regarding significant comments received in response to its Exposure Draft and Re-exposure Draft.
November 2017
In November 2017, the AASB staff updated this project to indicate that the AASB expects to issue the final Handbook material in Q1/2018.
March 2017
On April 19, 2017, the AASB issued a Re-exposure Draft of two proposed new standards that would replace existing Sections dealing with special reports on an entity’s compliance with agreement, statutes and regulations. Stakeholders are encouraged to submit their comments by July 28, 2017.
October 2016
In October 2016, the AASB staff updated this project to advise that the AASB expects to issue a Re-exposure Draft in respect of this project in Q2/2017.
May 2016
As a result of the discussion at the April 2016 meeting of the Board, the staff of the AASB has updated this project to indicate that a Re-exposure Draft is now expected to be issued in Q3/2016.
December 2015
In December 2015, the AASB staff updated this project to advise that the AASB expects to issue the final Canadian standards in Q3/2016.
September 2015
On September 2, 2015, the AASB issued an Exposure Draft that proposes a new standard that would replace existing standards dealing with audits and reviews of compliance with agreements, statutes and regulations. Comments are requested by December 23, 2015.
January 2012
In January 2012, the AASB approved a project proposal to redraft in the clarity format and, if appropriate, revise Sections 5800, 5815 and 8600.
