The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards.  The mandatory components are included in each Auditing Standard under the headings listed below:

• Application (paragraph Aus 0.1).
• Operative Date.
• Objective(s).
• Definition(s).
• Requirements.

The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components.  The explanatory material is included in each Auditing Standard under the headings listed below:

• Application (paragraph Aus 0.2).
• Introduction.
• Application and Other Explanatory Material.
• Conformity with International Standards on Auditing.
• Appendices.

Explanatory material does not create or extend mandatory components. (Ref: Para. A1) .

The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:

• an audit or a review conducted under Part 2M.3 of the Act; and
• an audit conducted under Part 7.8 of the Act.

When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)