Introduction

Scope of this Auditing Standard

3

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

4

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

Standards issued by the AUASB

(Ref: Para. A3-A25)

5

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]

2

Pursuant to section 227B(1)(a) of the ASIC Act.

3

Pursuant to section 227B(1)(b) of the ASIC Act.

6

‘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.

7

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).

4

For legislative purposes, ASQM 1 and ASQM 2 Engagement Quality Reviews are included in legislation as “Auditing Standards” – see paragraph 10(d) of this Preamble.

5

“Australian Auditing Standards” is defined in paragraph 10(c) of this Preamble.

6

For legislative purposes, ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity and ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation, are included in legislation as “Auditing Standards” – see paragraph 10(d) of this Preamble.

8

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.

7

The term “assurance practitioner” is defined in paragraph 10(a) of this Preamble.