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The diagram below outlines the interactions between the International Auditing and Assurance Standards Board (IAASB), the AUASB and our stakeholders. We align our processes with the IAASB in order to engage with and inform them at early stages of standards development.

In order to increase our influence during the formative stages of standards development, in 2019-20 the AUASB has implemented a revised process for issuing IAASB Exposure Drafts (EDs) in Australia, where the EDs are issued concurrently with their release internationally. This approach is consistent with the way the Australian Accounting Standards Board (AASB) and many other auditing and assurance standards setters seek to inform and influence international standards setting.

Having now adopted this new approach the AUASB is currently in the process of reviewing and updating its standard setting and due process documentation. As a consequence, there will be some minor adjustments to the AUASB Standard Setting Process presented in the diagram below implemented in the second half of 2020.

AUASB Standard-Setting Process flow chart consist of three separate columns, being the IAASB, AUASB and the Australian Stakeholders. AUASB Process is Step one FRC Strategic directives & oversight. Step two Identify technical issues. Australian Stakeholders provide feedback and agenda consultation. Step three Research and consider issue. Australian Stakeholders respond to targeted outreach and provide feedback to AUASB. AUASB contributes to IAASB research. Step four Develop and issue consultation document (discussion papers, invitation to comment, exposure draft). Australian Stakeholders participate in roundtable, targeted outreach and provide findings to AUASB. AUASB provides feedback to IAASB. Step five Consider feedback and complete submission to IAASB. IAASB considers submission. Step six AUASB Exposure draft issued. AUASB exposes IAASB final standard. Stakeholders respond to draft. Step seven Consider compelling reasons test. Step eight Issue final statement or other pronouncement, complete Office of Best Practice Regulation. Step nine Monitor through post-implementation review. Stakeholders provide feedback on implementation and compliance. AUASB provide feedback to IAASB. Australian Stakeholders Process is Step one identify technical issues. Feedback and agenda consultation with AUASB. Step two Respond to targeted outreach. Provide feedback to AUASB. Step three Review and consider consultation document. Step four Participate in roundtable, targeted outreach, prepare submissions to AUASB. Step five Respond to AUASB exposure draft. Stage six Implementation and compliance. Provide AUASB feedback to inform post implementation review. IAASB Process is Step one Identify technical issue. Step two Research and consultation. Step three Task force deliberation. Step four Transparent debate. AUASB contributes to IAASB research. Step five Exposure for public comment on exposure draft. AUASB provides feedback on IAASB documents. Step six Consideration of comments received on exposure. AUASB submits feedback to IAASB. Step seven Issue final Standard or other pronouncement. AUASB exposes final standard. Step eight Post-implementation review. AUASB contributes to IAASB research.