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


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


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.


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