|
1. Fifth CPAB Report The AASOC discussed the key issues underlying the fifth public report released by the Canadian Public Accountability Board (CPAB). It was noted that there are a number of problem areas found in the current inspections that were also noted in CPAB’s first inspections, indicating more improvement is required. The results found in Canada are similar to the findings in other countries. 2. Fair Values in Financial Statements The AASOC received a presentation on the significant issues faced by management when estimating fair values of assets in preparing their company’s financial statements. A key issue relates to the current credit crunch when there is no active market trading on which to base the fair value of certain investments. It was noted that auditors face the issue of obtaining sufficient appropriate evidence to support management’s estimated fair values. 3. AASOC/AASB Relations and AASOC Process The AASOC was presented with the results of discussions to date of an ad hoc committee that has been formed to discuss the working relationship between the AASOC and the AASB, the AASOC’s methods of operation and how these can be designed to best serve the public interest. 4. AASB Update The AASB Chair reviewed the activities of the AASB since the last AASOC meeting. The presentation included a review of the due process followed by AASB in deciding whether to adopt the reporting ISAs as Canadian Auditing Standards (CASs). |
