Standards Interpretation—Actuarial Awareness for Auditors—as at 31 December 2022

Feb-2023

Target Audience: All attest auditors

Effective date: Immediately

Prepared by: Audit Services

Description of Subject: Annual update of the Actuarial Awareness for Auditors publications noted below. This update supersedes the previous versions of these publications.

• Actuarial Awareness for Auditors—Selection of the Accounting Discount Rate (under IFRS)

This guidance is to assist audit teams with the audit of the determination by management of the accounting discount rate for a Canadian defined benefit pension plan that requires the calculation of the obligation using a discount rate that is determined by reference to high-quality corporate bonds (or high quality debt instruments).

• Actuarial Awareness for Auditors—Guidance on all assumptions other than the Accounting Discount Rate

The publication for December 31, 2022 is not available for now. In the absence of this guidance audit teams may consult with the Internal Specialist for Actuarial and Pensions, who can assist in assessing key actuarial assumptions used in the valuation of defined benefit obligations for employee benefit plans, such as the inflation rate. AEA also has an open contract with an actuary that could support audit teams in assessing key actuarial assumptions, if necessary.

Impact on Audit Teams:

This guidance is only relevant for teams auditing entities that have defined benefit post-employment benefit obligations.

Questions: Contact AEA