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AASB

Statement of Operating Procedures

(Adopted by the Auditing and Assurance Standards Board on December 4, 2018, and ratified by the Auditing and Assurance Standards Oversight Council on December 20, 2018.)

Introduction

  1. This Statement of Operating Procedures has been developed and adopted by the Auditing and Assurance Standards Board (AASB) in accordance with its Terms of Reference. The AASB applies the procedures set out below in carrying out its responsibilities, subject to such input as the Auditing and Assurance Standards Oversight Council (AASOC) may provide.

Strategic and Operating Plans

  1. The AASB develops long-term strategic plans and applies such plans in working to achieve the objectives and fulfill the responsibilities in its Terms of Reference. Strategic plans are developed through due process and in consultation with AASOC. Strategic plans address the differing needs of stakeholders for whom the AASB establishes standards for quality management, audit, other assurance and related services, and Guidelines and Practice Notes (referred to as “assurance standards”).
      
  2. The AASB’s strategic plan forms the basis for the annual operating plans to be submitted to AASOC and the annual performance reports on which AASOC bases its assessment of the AASB’s performance. Annual operating plans specify how the AASB’s strategy will be carried out for that year. The AASB’s plans incorporate a basis for assessing whether its activities have been successful in achieving desired outcomes.
      
  3. The AASB reports annually to AASOC on its performance in fulfilling its mission, meeting its objectives, and carrying out its strategic and operating plans.
     
  4. The AASB follows an ongoing risk management process in developing and carrying out strategic and operating plans.

Meetings

  1. The AASB holds meetings as frequently as necessary to discharge its responsibilities, normally at least six times per year. Additional meetings are scheduled as necessary. The AASB publishes in advance a schedule of planned meetings for each operating year.
      
  2. The AASB may hold meetings in person or by telephone, videoconference, or other similar means.
      
  3. A quorum at any AASB meeting is two-thirds of all AASB members.
      
  4. The AASB normally conducts its meetings in private but may, at its discretion, invite non-members to attend and participate in its discussions or open its discussions to the public.

Voting

  1. Each member of the AASB, including the Chair, has one vote. For matters requiring only a simple majority of all members, the Chair has an additional vote if required to break a tie.
      
  2. AASB members serve in their personal capacity. Accordingly, substitutions are not accepted. AASB members vote according to their own beliefs, experience and judgment based on the information they have and the discussions they have taken part in, and not according to the views of any firm, organization, or constituency with which they are associated.
       
  3. Individual votes are kept confidential in any published documents.
      
  4. An affirmative vote of two-thirds of all AASB members is required for the following decisions:
    1. To approve a project proposal or to approve the discontinuance of a project.
    2. To approve for issuance a discussion paper, statement of principles, or other similar due process document.
    3. To forgo exposure of a proposed standard, in unusual circumstances, and for a stated reason or reasons.
    4. To forgo re-exposure of a proposed standard, for a stated reason or reasons.
    5. To release an exposure draft; to approve a standard, including a revision to an existing standard and a consequential amendment to another standard; or to withdraw a standard.
  1. The affirmative vote of a simple majority of all AASB members is required for all other decisions.
      
  2. Voting is done by a show of hands in meetings. The results of votes taken in AASB meetings are documented in the minutes. Dissenting votes, if any, with supporting reasons, are recorded in the minutes. The minutes constitute proper evidence of the AASB’s decisions.
       
  3. A written ballot process may be carried out by email outside of a meeting. The ballots constitute proper evidence of the AASB’s decisions in such circumstances.

Due Process

  1. The AASB adheres to its Due Process Manual in developing or adopting assurance standards. The Due Process Manual is made available to the public, and is reviewed no later than three years after the completion of the previous review. In developing assurance standards, the AASB undertakes research, discussions, and public consultations to maintain the objectivity of the process and the quality of the output. In adopting International Standards on Auditing (ISAs) and other international standards developed by the International Auditing and Assurance Standards Board (IAASB), the AASB takes steps to satisfy itself that the IAASB has followed appropriate processes.
     
  2. The AASB may delegate to the Chair of the AASB the authority to approve final changes to be made before the issuance of documents.
     
  3. The AASB adopts and applies a policy for maintaining a public file of key documents for completed standard-setting projects.

AASB Committees

  1. The AASB may create other groups (committees, task forces, advisory groups, or other groups), including committees of its own members, to assist it in carrying out its work. The AASB does not delegate its decision-making authority to other groups and, therefore, creates such groups with a mandate only to provide advice.
     
  2. The AASB provides the roles and responsibilities for all groups affiliated with it, which specify:
  1. the purpose, objectives, and responsibilities of the group; and
  2. the size and composition of membership, including the desired mix of members’ backgrounds, and the terms of appointment.
  1. Appointments of members and the chair of all groups affiliated with the AASB are approved by the Chair of the AASB and the Director, Auditing and Assurance Standards Board.

Staff Support

  1. The AASB and all of its committees and affiliated groups are supported by the Director, Auditing and Assurance Standards Board and such other staff as required.

Funding

  1. CPA Canada provides funding, staff, and other resources to support an independent standard-setting process.

Communications

  1. The AASB informs stakeholders and the general public concerning its activities. In particular, the AASB publishes its meeting dates, agendas, decision summaries, and other project-related information, strategic and annual operating plans, and annual reports. The principal means of communication is through the posting of information and documents on the AASB’s website.
     
  2. The AASB develops and implements a communications plan, setting out goals and objectives, opportunities and challenges, target audiences, available media, and specific actions to improve communications with key stakeholder groups.

Bilingualism

  1. The AASB’s working language is English but published materials are provided in both English and French. The AASB receives and considers comment letters in either language on its published proposals.
     
  2. All public AASB material is published simultaneously in both English and French versions.
     
  3. The AASB adopts and applies policies for the translation of published materials to ensure high quality.

Operations

  1. In carrying out its strategy of adopting ISAs and other international standards, the AASB applies the IAASB’s Guide for National Standard Setters that Adopt IAASB’s International Standards but Find It Necessary to Make Limited Modifications. This policy position is designed in the interest of seeking a common understanding among national standard setters, regulators, and the public.
     
    The AASB contributes to the development of high-quality, internationally accepted assurance standards by steps such as:
  1. generally responding to all IAASB invitations to comment on discussion papers and exposure drafts of proposed standards;
  2. assisting Canadian stakeholders in communicating with the IAASB;
  3. sponsoring and participating in IAASB roundtables and conferences;
  4. disseminating information to Canadian stakeholders about IAASB activities;
  5. assisting in identifying qualified Canadians as candidates for membership on the IAASB and its related groups; and
  6. providing staff support to IAASB projects.
  1. The AASB uses its working relationships with international standard setters to ensure that it considers global best practices in developing its assurance standards and contributes to the development of those practices.
     
  2. The AASB’s operating year ends on March 31 in each calendar year.

Confidentiality

  1. The AASB adopts and applies a policy for keeping meeting materials and information confidential, unless the AASB decides to release a particular document or information to the public. This policy does not prohibit AASB members and staff from consulting with interested parties concerning matters discussed in meeting materials. In this connection, they may provide a copy of pertinent AASB documents to the interested parties, provided those materials remain subject to the requirement for confidentiality and other conditions of the AASB’s policy and it is made clear that they have not necessarily been approved by the AASB.

Liaison with Other Standard Setters

  1. The AASB maintains liaison relationships with other national standard setters in support of its objectives, with particular emphasis on the relationship with the IAASB.

Self-assessment

  1. The AASB carries out an annual self-assessment and reports to AASOC.