The reason for adopting the CASs is to
A)comply with requirements in the Canada Business Corporations Act.
B)respond to the increased litigation risks faced by auditors.
C)be consistent with the international standards of auditing.
D)simplify the auditing process.

Question

Quizplus · Accepted Answer

The reason for adopting the CASs (Canadian Auditing Standards) is to be consistent with the international standards of auditing, which are set by the International Auditing and Assurance Standards Board (IAASB). By aligning with these standards, Canadian auditors can better serve multinational clients, and improve the overall quality of auditing worldwide. While compliance with the Canada Business Corporations Act may require certain reporting and disclosure requirements, it is not the primary reason for adopting the CASs. Similarly, while increased litigation risks may be a concern for auditors, this is not the primary reason for adopting the CASs. Finally, while the CASs may simplify the auditing process in some respects, their primary goal is to improve the quality and consistency of auditing practices.

The Reason for Adopting the CASs Is to