Procedure for issue of Auditing & Assurance Standards, Statements & General Clarifications by Auditing & Assurance Standards Board (AASB)

Backgruound:-

ICAI constituted Auditing Process Committee on 17^th Sep 1982, later renamed as Auditing and Assurance and Standards Board (AASB) at its 226^th meeting held in july 2002, to renewed the existing Auditing Practices in India & to develop Auditing and Assurance Standards (AAS). So that, these may be issued under the authority of the council of Institute. Since, ICAI is one of the
founding members of the International Federation of Accountants (IFAC), while formulating the AAS, the AASB takes into consideration  the corresponding Standards, if any, issued by the International Auditing and Assurance Standards Board (IAASB).

                In the preparation of standards, statement & General Clarifications, AASB is assisted by Study Groups/ Task Force, constituted to consider specific projects. Study Groups/ Task Force consists of a Chartered Accountant, as a convener & 5-7 other members as nominated by the convener in consultation with the Chairman of AASB

Procedure for issue of Auditing and Assurance Standards (AAS):-

The same procedure is also followed for issue of Statements of Auditing and General Clarifications.

• Initially, the study groups develops the preliminary draft of Standard, Statements and General Clarifications.
• The preliminary draft is then sent to the chairman of  AASB for approval.
• The AASB considers the preliminary draft in a meeting held by It. The AASB may refer the Study Group/Task Force for re-examining the deliberations made by AASB
• In case of a revision made by the Study Group/ Task Force, the above procedure is reiterated.
• The preliminary draft or revised preliminary draft, as the case may be as approved by the AASB is then circulated to the council members of the ICAI for their comments. The AASB finalises the Exposure draft on the basis of the comments so received form the council of ICAI.
• The Exposure draft of the proposed standards or statement is issued by way of publication in the Monthly Journal of the Institute and/or hosted in ICAI website for comments by Professional Accountants (Chartered Accountants) or Public ordinarily for 45 days.
• After considering the comments & suggestions received from Chartered Accountants & Public, the Exposure Draft is finalized by AASB and submitted to council of ICAI for its consideration & approval.
• The council of ICAI considers the final draft of proposed standards, statements or General Clarifications, and if necessary, modifies the same in consultation with AASB. The concerned standard, statements & General Clarifications is then issued under the authority of the council of ICAI.
• The standard, Statement or General clarification so issued may be made mandatory or optional..