Application and Other Explanatory Material

Includes: Authority of the Paragraphs in Australian Auditing Standards | Compliance with Requirements

Authority of the Paragraphs in Australian Auditing Standards

 (Ref: Para. 10)

A1

Included within the requirements section of a standard are references to paragraphs in the “Application and Other Explanatory Material” section of the standard.  Such references do not extend or create requirements.

 

Compliance with Requirements

(Ref: Para. 12)

A2

Under paragraph 12, an auditor need not document the reasons why a requirement is not relevant.  However, where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant requirement, the auditor is required under ASA 230 or ASRE 2410[2], as applicable, to document:

  • the circumstances surrounding the inability to comply;
  • the reasons for the inability to comply; and
  • justification of how alternative procedures achieve the objectives of the requirement.

2

See ASA 230 Audit Documentation and ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.