This Auditing Standard sets out how AUASB Standards are to be understood, interpreted and applied.

AUASB Standards are to be read and applied in conjunction with this Auditing Standard. (Ref: Para. A1-A2)

(Ref: Para. A3-A25)

The AUASB derives its functions and powers under section 227B of the Australian Securities and Investments Commission Act 2001. The AUASB:

1. makes Auditing Standards under section 336 of the Corporations Act for the purposes of the corporations legislation;^[2] and 
2. formulates auditing and assurance standards for other purposes.^[3]

‘Auditing and assurance standards for other purposes’ consists of standards that are designed for subject-specific areas. They include, for example, assurance engagements that relate to:

• reviews (other than a review by the independent auditor of the entity, of interim financial information, including interim financial reports, prepared for other purposes);
• evaluating the efficiency and/or effectiveness of an entity’s activities;
• information other than historical financial information;
• prospective financial information; and
• the effectiveness of internal controls.

The AUASB issues the following types of standards (AUASB Standards) pursuant to its mandate under section 227B of the ASIC Act:

1. Australian Standards on Quality Management (ASQMs);^[4]
2. Australian Auditing Standards (ASAs);^[5]
3. Standards on Review Engagements (ASREs);^[6]
4. Standards on Assurance Engagements (ASAEs); and
5. Standards on Related Services (ASRSs).

AUASB Standards do not address all the responsibilities of the assurance practitioner^[7] that may exist in legislation, regulation or otherwise in connection with engagements that fall within the scope of AUASB Standards.