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AASB

Statement of Operating Procedures

(Adopted by the Auditing and Assurance Standards Board on March 12, 2024.)

Introduction

  1. This Statement of Operating Procedures describes the procedures the Auditing and Assurance Standards Board (AASB) applies in carrying out its responsibilities as defined in its Terms of Reference. These procedures have been developed and adopted by the AASB in accordance with its Terms of Reference.

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 the Auditing and Assurance Standards Oversight Council or its successor (the Oversight Council). Strategic plans address the differing needs of interested and affected parties for whom the AASB establishes standards for quality management, audit, sustainability assurance, other assurance and related services engagements, and Assurance and Related Services Guidelines (referred to as “assurance standards”).
      
  2. The AASB’s strategic plan forms the basis for the annual operating plans to be submitted to the Oversight Council and the annual performance reports on which the Oversight Council 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 the Oversight Council 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.
      
  2. The AASB may hold meetings in person, virtually, or a hybrid of in person and virtually. Arrangements may be made for a member(s) to participate in any meeting virtually.
      
  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 consultation paper 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 Standard-setting Due Process Manual in developing or adopting assurance standards. The Due Process Manual is available to the public. 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, reference groups, advisory groups, standing committees, 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.

Staff Support

  1. The AASB and all of its committees and affiliated groups are supported by the Director, Auditing and Assurance Standards 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 interested and affected parties 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 interested and affected parties.

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 English and French.
     
  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 interested and affected parties in Canada in communicating with the IAASB;
  3. sponsoring and participating in IAASB roundtables and conferences;
  4. disseminating information to interested and affected parties in Canada about IAASB activities;
  5. assisting in identifying qualified candidates from Canada 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 Canadian and 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 the Oversight Council.

Periodic Review

  1. The AASB reviews its Statement of Operating Procedures at least once every three years to ensure that it continues to be fit for purpose.