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Section 7170, Auditor's Consent to the Use of the Auditor's Report in Connection with a Designated Document

Ef­fec­tive date:

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, 2017.

Overview

Sec­tion 7170, Au­di­tor’s Con­sent to the Use of the Au­di­tor’s Re­port in Con­nec­tion with Busi­ness Ac­qui­si­tion Re­ports, re­placed Sec­tion 7500, Au­di­tor’s Con­sent to the Use of the Au­di­tor’s Re­port in Con­nec­tion with Des­ig­nated Doc­u­ments. It set 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.

On Au­gust 26, 2016, the Chair of the AASB is­sued a let­ter ad­vis­ing that the ef­fec­tive date of Sec­tion 7170 was be­ing de­ferred by one year. This was re­flected in the CPA Canada Hand­book - As­sur­ance in Oc­to­ber 2016. The AASB noted that it was cur­rently work­ing to­ward fi­nal­iz­ing Cana­dian Stan­dard on As­so­ci­a­tion (CSOA) 5000, Use of the Prac­ti­tioner’s Com­mu­ni­ca­tion or Name. The AASB be­lieved it was im­por­tant to align the ef­fec­tive date of Sec­tion 7170 with the ef­fec­tive date of CSOA 5000; hence the ef­fec­tive date of Sec­tion 7170 was de­ferred.

Sec­tion 7500, Au­di­tor’s Con­sent to the Use of the Au­di­tor’s Re­port in Con­nec­tion with Des­ig­nated Doc­u­ments, was re­tained in “Re­cently Re­placed Pro­nounce­ments Still in Ef­fect,” in the Hand­book un­til the AASB con­cluded on the fi­nal ma­te­r­ial re­lat­ing to the au­di­tor’s con­sent to the use of the au­di­tor’s re­port in con­nec­tion with a des­ig­nated doc­u­ment. 

In March 2019, after completing its project, the AASB issued a new Section 7170, Auditor's Consent to the Use of the Auditor's Report in Connection with a Designated Document, which replaces: (i)      Section 7170, Auditor’s Consent to the Use of the Auditor’s Report included in a Business Acquisition Report; and Section 7500. The new Section 7170 deals 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. The new     Section 7170 is effective for an auditor's consent issued on or after June 1, 2019.

His­tory of Sec­tion 7170

Date

De­vel­op­ment

Com­ments

 July 2015

Issued to replace Section 7500, Auditor’s Consent to the Use of the Auditor’s Report in Connection with Designated Documents.

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.  See Completed Project.

August 2016

One year deferral of the effective date

Announced by the AASB Chair that the effective date of Section 7170 is deferred by one year.

October 2016

CPA Canada Handbook – Assurance update

Amendment to Section 7170 so that it is 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, 2017.

December 2018

Amendments to Section 7170

These amend­ments to Sec­tion 7170 are effective for an auditor’s consent issued on or after June 1, 2019. The revisions are expected to be included in a March 2019 Handbook update. The re­vi­sions were in­cluded in a March 2019 CPA Canada Hand­book – Assurance up­date.

Note: The above sum­mary does not in­clude de­tails of con­se­quen­tial amend­ments made as the re­sult of other pro­jects.

Amendments under consideration

  • None

 

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