Application and Other Explanatory Material
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.
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, 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.