Revisions to the Joint Policy Statement (JPS) Concerning Communications between Actuaries Involved in the Preparation of Financial Statements and Auditors [ED]

Comments are requested by September 19, 2022

Next steps:

The AASB will deliberate on the comments it receives on its Exposure Draft

Last up­dated:

June 2022

Overview

At its meeting on September 9-10, 2021, the AASB unanimously approved a project proposal to revise the Joint Policy Statement Concerning Communications between Actuaries Involved in the Preparation of Financial Statements and Auditors, found in the Appendix to CAS 500, Audit Evidence.

With this project, the AASB will revise the Joint Policy Statement (JPS). The JPS was first issued in 2007 and has not been updated since. With recent changes to significant auditing and accounting standards impacting amounts determined using actuarial calculations, the AASB undertook research to understand the challenges faced by practitioners when communicating with actuaries on audited amounts determined using actuarial calculations.

The results of the research highlighted the following public interest issues:

  • Audit quality is enhanced when auditors and actuaries have a clear understanding of how they will use each other’s work.
  • Auditors have the appropriate guidance to apply these newly issued standards, in the context of an audit including amounts determined using actuarial calculations.

The AASB will address these public interest issues by seeking to clarify:

  • whether the communications principles continue to be appropriate in the new practice environment, including the nature, timing and extent of communications required between the two professions; and
  • the appropriate work effort under the auditing standards when the actuary requests information from the auditor to use in their calculations.

Re­view the project summary on the AASB’s website.  

 

Other De­vel­op­ments

June 2022

On June 30, 2022, the AASB and the Canadian Actuarial Standards Board (ASB) issued a joint Exposure Draft on the Joint Policy Statement Concerning Communications between Actuaries Involved in the Preparation of Financial Statements and Auditors. Comments are requested by September 19, 2022.

September 2021

At its meeting on September 9-10, 2021, the AASB unanimously approved a project proposal to revise the Joint Policy Statement Concerning Communications between Actuaries Involved in the Preparation of Financial Statements and Auditors, found in the Appendix to CAS 500, Audit Evidence.

 

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