7. What is the Clarity Format?

The Clarity Format refers to a new drafting convention that is clear, consistent and easy to understand. Canadian standard setters helped develop this format, and are confident that it is appropriate for Canada.

The new Clarity Format presents each standard in five parts:

1. Introduction: explains the purpose and scope of the CAS;
2. Objectives: define the context of the requirements;
3. Definitions: meanings of terms in the CASs;
4. Requirements: what the auditor must comply with. Requirements use the words the auditor shall; and
5. Application and other Explanatory Material, cross-referenced to the Requirements, and providing further explanation of and guidance for carrying out the CAS requirements.
   

The Canadian AASB will adopt these clarified ISAs as Canadian Auditing Standards (CASs) with minimal modification for audits of financial statements for periods ending on or after December 14, 2010.