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Update of Public Sector Auditing Standards (Phase I - Amendments to Sections PS 5300) [Completed]

Effective date:

Effective for reports dated on or after April 1, 2019. Early adoption is permitted.

Included in the CPA Canada Handbook – Assurance:

AuG-49 was included in the Handbook in September 2018.

Next steps:

Guidance on performance audits – Exposure draft being developed. Exposure draft expected to be approved in Q4 2018.

Last up­dated:

September 2018

Overview

Sec­tion PS 5300 was reviewed by the PSAB. The Board’s as­sess­ment iden­ti­fied the fol­low­ing changes required in respect of ­Sec­tion PS 5300, following which Section PS 5300 is to be withdrawn:

  1. The re­quire­ments and ap­pli­ca­tion ma­te­r­ial in para­graphs PS 5300.11-.13 are to be ad­dressed by CSAE 3530 or CSAE 3531 – See Pro­ject;
  2. The re­quire­ments and ap­pli­ca­tion ma­te­r­ial in para­graphs PS 5300.14-.16 are to be ad­dressed by AuG-49 – see be­low; and
  3. The re­quire­ments and ap­pli­ca­tion ma­te­r­ial in para­graphs PS 5300.17-.24 are to be ad­dressed by Cana­dian Stan­dard on Re­lated Ser­vices (CSRS) 4460, Re­ports on Sup­ple­men­tary Mat­ters Aris­ing from an Au­dit or a Re­view En­gage­ment.

On August 1, 2017, the AASB issued an Exposure Draft of proposed AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements, in respect of this project.

In March 2018, the AASB issued CSAE 3530, Attestation Engagements to Report on Compliance, and CSAE 3531, Direct Engagements to Report on Compliance. These standards replace 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 effective for attestation engagements to report on management's statement of an entity's compliance when the practitioner's report is dated on or after April 1, 2019 and CSAE 3531 is effective for direct engagements to report on an entity's compliance when the practitioner's report is dated on or after April 1, 2019. 

On June 29, 2018, the AASB unanimously approved new Assurance and Related Services Guideline (AuG) 49, Reporting on compliance with specified authorities for transactions coming to the auditor’s notice during the audit of financial statements. The Board also approved related consequential amendments to Canadian Standard on Related Services (CSRS) 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement.

The Board concluded that changes made in finalizing the guideline were not significantly different from the proposals in the Exposure Draft and determined that re-exposure is not needed. The new guideline will be effective for reports dated on or after April 1, 2019, with early application permitted. The guide­line was in­cluded in the CPA Canada Hand­book in Sep­tem­ber 2018.

 

Other developments

September 2018

On September 4, 2018, the AASB released the Basis for Conclusions on AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements.

July 2018

In July 2018, the staff of the AASB updated the information in respect of this project to advise that the AASB expects to issue an Exposure Draft in respect of the next stage of this project in Q1/2019.

June 2018

In June 2018, the AASB staff updated this project to indicate that the AASB expects to issue the final Handbook material in Q3/2018.

On June 29, 2018, the AASB unanimously approved new Assurance and Related Services Guideline (AuG) 49, Reporting on compliance with specified authorities for transactions coming to the auditor’s notice during the audit of financial statements. The Board also approved related consequential amendments to Canadian Standard on Related Services (CSRS) 4460, Reports on Supplementary Matters Arising from an Audit or a Review Engagement.

March 2018

In March 2018, the AASB issued CSAE 3530 and CSAE 3531, which will replace paragraphs PS 5300.11-.13 and are effective when the practitioner's report is dated on or after April 1, 2019.

November 2017

In November 2017, the AASB staff updated this project to indicate that the AASB expects to issue the final Handbook material in Q2/2018.

August 2017

On August 1, 2017, the AASB issued an Exposure Draft of proposed AuG-49, Reporting on Compliance with Specified Authorities for Transactions Coming to the Auditor’s Notice during the Audit of Financial Statements, in respect of this project. Comments are requested by November 28, 2017.

June 2017

In June 2017, the AASB staff updated this project to advise that an Exposure Draft is now expected in Q3/2017.

October 2016

In October 2016, the AASB staff updated this project to advise that the AASB expects to issue an Exposure Draft in respect of this project in Q2/2017.

July 2016

In July 2016, the staff updated this project to indicate that the AASB expects to issue an Exposure Draft in Q4/2016.

 

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