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Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Business Acquisition Reports [Completed]

Ef­fec­tive date:

Originally effective for an auditor’s consent to the use of an auditor’s report in a business acquisition report issued on or after June 1, 2016. On August 26, 2016, it was announced by the AASB Chair that the effective date has been deferred by one year.

Included in the CPA Canada Handbook – Assurance:

July 2015, noting that the deferral in the effective date will be included in the Handbook in October 2016

Last up­dated:

August 2016

Overview

The new Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Business Acquisition Reports, replaces Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

Section 7170 sets out new requirements relating to: the auditor's responsibilities in responding to requests to consent to the use of the auditor's report on the audited financial statements of the acquired business that are to be included in a business acquisition report issued by the acquirer; and the format and content of the auditor's consent.

Other developments

August 2016

On August 26, 2016, the Chair of the AASB issued a letter advising that the effective date of Section 7170 is being deferred by one year to June 1, 2017. This will be reflected in the Handbook in October 2016. This deferral is because the AASB believes it is important to align the effective date of Section 7170 with the effective date of CSOA 5000. The former standard, Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents, will be retained in “Recently Replaced Pronouncements Still in Effect,” in the Handbook until the AASB concludes on the final material relating to the auditor’s consent to the use of the auditor’s report in connection with designated documents.

July 2015

On July 2, 2015, the AASB staff released a Basis for Conclusions document summarizing the process followed in developing the new Section 7170 and the conclusions reached regarding significant comments received in response to the AASB’s Exposure Draft.

October 2014

In October 2014, the AASB issued for comment its Exposure Draft, Auditor’s Consent to the Use of the Auditor’s Report Included in a Business Acquisition.  Comments requested by January 30, 2015.

 

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