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

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, 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.

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. This was reflected in the CPA Canada Handbook - Assurance in October 2016. The AASB is currently working toward finalizing Canadian Standard on Association (CSOA) 5000, Use of the Practitioner’s Communication or Name. The AASB believes it is important to align the effective date of Section 7170 with the effective date of CSOA 5000; hence the effective date of Section 7170 is being deferred.

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. 

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.

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

Amendments under consideration

 

Correction list for hyphenation

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