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, except for subsequent amendments. |
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 |
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. |
|
May 2022 |
Relates to conforming amendments to Other Canadian Standards resulting from the approval of CSQM 1. A new requirement in paragraph 8 was introduced. See Completed Project. |
The change effective for an auditor's consent to the use of a report of the auditor in connection with a designated document for periods beginning on or after December 15, 2022. |
Note: The above summary does not include details of consequential amendments made as the result of other projects.
Amendments under consideration
- None