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Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents [ED]

Comment period ends on July 31, 2018

Proposed effective date:

The revised Section 7170 would be effective for consents issued on or after June 1, 2019. Earlier application would be permitted.

Next steps:

The AASB expects to issue the final Handbook material in Q1/2019.

Last up­dated:

July 2018

 

Overview

In June 2017, the AASB approved a project proposal to revise Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

The AASB had intended to withdraw Section 7500 when the Canadian Standard on Association (CSOA) 5000, Use of the Practitioner’s Communication or Name, was issued. However, CSOA 5000 does not address an auditor’s consent to the use of the auditor’s report on an entity’s financial statements filed with securities regulators. Therefore, the AASB has decided to retain and revise Section 7500. The revisions will be limited to documents filed with securities regulators.

On May 4, 2018, the AASB issued an Exposure Draft of a proposed revised Section 7170, Auditor’s Consent to the Use of the Auditor’s Report in Connection with a Designated Document, which deals with an auditor’s consent in connection with designated documents. Stakeholders are encouraged to submit their comments by July 31, 2018. The revised Section 7170 would replace: (i) the existing Section 7170 ; and (ii) Section 7500.

The Exposure Draft proposes that the revised Section 7170 deal with an auditor's responsibilities in responding to requests to consent to the use of the auditor’s report in connection with a designated document. A designated document consists of the following continuous disclosure documents filed with securities regulatory authorities: (i) audited financial statements; or (ii) a document that contains, or incorporates by reference, the audited financial statements.

Documents currently within the scope of Section 7500 that will be included within the scope of the revised Section 7170 include: (i) the entity’s audited financial statements; or (ii) the entity’s annual report that contains the entity’s audited financial statements and the auditor’s report thereon.

Several documents currently within the scope of Section 7500 will be excluded from the scope of the revised Section 7170 unless they meet the definition of a designated document under the revised Section 7170. These documents include the entity’s: (i) MD&A; (ii) material change report; and (iii) Annual Information Form.

 

Other de­vel­op­ments

July 2018

In July, 2018, the staff of the AASB updated the information in respect of this project to advise that the AASB expects issue the final Handbook material in Q1/2019.

May 2018

On May 4, 2018, the AASB issued an Exposure Draft of a proposed new standard that deals with an auditor’s consent in connection with designated documents. Stakeholders are encouraged to submit their comments by July 31, 2018.

November 2017

In November 2017, the AASB staff updated this project to indicate that the AASB expects to issue an Exposure Draft in ​Q2/2018.

June 2017

At its meeting on June 12-13, 2017, the AASB approved a project proposal to revise Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

 

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