News

Audit Committee Chairs play an important role in the quality of financial reporting and audit quality. The FRC and AUASB commissioned independent research to gather perspectives on audit quality from a sample of ACCs. This builds on previously conducted surveys of ACCs (one in 2018 and another in 2020). This report has been authored by the independent researchers and details the feedback they received.

Pleasingly and importantly ACCs remain very satisfied with the quality of their external auditor. The results are consistent with previous surveys. 

Link to report

The AUASB provides an update on our previously issued Supporting Auditors in Enhancing Audit Quality December 2021, in response to the recently issued Audit Inspection Report 30 June 2022 and ASIC’s Focus Areas for 31 December 2022.

This refers to previously issued standards and guidance which are still relevant, as well as revised standards which become effective for the December 2022 reporting period and recently issued guidance.

The AASB-AUASB published a joint research report (authored by Jean You and Professor Roger Simnett) that identifies climate-related disclosures and associated assurance practices in Annual Reports of ASX-listed entities.

The IAASB has recently published new guidance to help auditors understand the impact on the ISAs due to narrow-scope amendments that have been made to IAS 1 Presentation of Financial Statements which require entities to disclose their material accounting policy information, instead of significant account policies. These amendments are effective for annual reporting periods beginning on or after 1 January 2023.

The AUASB is holding Roundtables in February 2023 to gather stakeholder’s views and input to the AUASB on:

• Discussion Paper Should KAMs be extended beyond listed entities?
• Consultation Paper ED ISA 500 Audit Evidence.

Also to assist stakeholder’s understanding of the Consultation Paper ED ISA 500 Audit Evidence please view the introductory webinar.  

At the time of issuing ASA 701 Communicating Key Audit Matters in the Independent Auditor’s Report the AUASB committed to reconsidering its scope as part of the post implementation review. The AUASB has now issued a Discussion Paper seeking feedback from stakeholders on whether the communication of KAMs should be expanded beyond listed entities. Comments close 31 March 2023.

The AUASB undertakes a formal Agenda Consultation process with stakeholders at least once every five years to obtain timely feedback on current and emerging auditing and assurance issues. Comments on this process were requested by July 2022.

In response to all comments received from stakeholders on this latest Agenda Consultation process the AUASB worked through all submissions received and outreach comments that were received at its September 2022 meeting. A summary of the feedback and the AUASB’s conclusions from the Agenda Consultation process has now been released in a Feedback Statement that documents the implications for AUASB’s future priorities and current Technical Work Program.

AUASB November 2022 Meeting Highlights are now available, click here to read.

The AUASB has released a Consultation Paperseeking public comment on the IAASB’s Exposure Draft on International Standard on Auditing (ISA) 500, Audit Evidence. The current ISA 500 addresses an auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate evidence to draw reasonable conclusions on which to base the auditor’s opinion.

In addition to the invitation to comment on the Paper, the AUASB will soon release an educative Webinar about the key themes and changes that the Proposed ISA 500 (Revised) Audit Evidence seeks to address.  This will be accessible via the AUASB website.

The Public Agenda and Papers for AUASB Meeting is now available.

The November 2022 AUASB Newsletter is now available. This Newsletter covers the major recent publications and developments from the AUASB.

AUASB Chair, Bill Edge, welcomed the appointment of two new members of the Auditing and Assurance Standards Board, as announced by the Financial Reporting Council  (FRC).

The relevance and reliability of data to be used as audit evidence is fundamental to obtaining sufficient and appropriate audit evidence. A new AUASB Bulletin Evaluating the Reliability of Data obtained for Use in Audit Technology Tools has been issued to assist auditors in evaluating the reliability of data when using technology. This publication follows on from the previously issued AUASB Bulletin Integrity of Data Obtained for the Purpose of an Audit of a Financial Report.

The Australian National Centre for Audit & Assurance Research (ANCAAR) - AUASB Research and Regulation Workshop, held in September 2022 was a critical exercise demonstrating how the AUASB engages with the academic community. This AUASB Research Report (AUASB Research Report 8: ANCAAR – AUASB Research and Regulation Workshop) summarises presentations from the workshop, including the implications for the AUASB. As detailed in AUASB’s evidence informed standard setting (EISS) strategy the AUASB encourages and supports research that provides evidence on the current audit and assurance environment that informs our current and future agenda.

ASA 315 Identifying and Assessing the Risks of Material Misstatement is effective for financial reporting periods commencing on or after 15 December 2021 (i.e., December 2022 year ends).

The AUASB has a web page containing FAQs and Publications to support the implementation of ASA 315.

Now the IAASB has issued a ‘First-Time Implementation Guide’ for this new standard which helps auditors understand and apply the revised standard. The First-Time Implementation Guide includes an explanation of the substantial changes from the previous version of ASA/ISA 315, but importantly also what concepts have not changed.

As the AUASB and IAASB currently review the existing Auditing Standard relating to Going Concern (ASA 570), and auditors face challenging economic conditions which may result in an increased occurrence of Going Concern audit risks, this new publication from the IAASB describing common questions related to reporting going concern matters in the auditor’s report is a helpful tool.

The publication focuses on the use of and interrelationship of the Material Uncertainty Related to Going Concern and Key Audit Matters sections, and the Emphasis of Matter paragraphs, in an auditor’s report prepared in accordance with the Auditing Standards.

The Chair of the Auditing and Assurance Standards Board, Mr. Bill Edge, welcomes ASIC’s Audit inspection report: 1 July 2021 to 30 June 2022.

"The Audit Inspection findings are an important indicator of audit quality and compliance with our auditing standards”, Mr Edge said.

Existing AUASB Assurance Standards are widely accepted and currently used to perform sustainability assurance engagements and remain robust and appropriate.  This AUASB Sustainability Assurance Update has been prepared by AUASB Staff to inform stakeholders, as we will continue to do, as to guidance available for sustainability assurance and recent activities being considered internationally as part of the development of an overarching standard for assurance on sustainability reporting for use by all assurance practitioners.

The Colin Ferguson Oration is the address given to attendees at the annual Australian Accounting Hall of Fame dinner and presentation evening. This year's oration was delivered by Bill Edge, the current chair of the Auditing and Assurance Standards Board (AUASB), and a member of both the International Auditing and Assurance Standards Board and Australia's Financial Reporting Council in March 2022.

Bill's oration examined developments in formalising sustainability reporting and has now been published in the Australian Accounting Review (AAR). We thank the editors of the AAR journal for making Bill’s oration publicly available for everyone to read here.

The Australian Institute of Company Directors (AICD) and AUASB support all parties in the financial reporting chain working together to maintain audit quality and high-quality financial reporting.  To assist audit committees in fulfilling their responsibilities, the AICD and the AUASB have issued a new publication, Periodic Comprehensive Review of External Auditor, which provides guidance on a process and matters to consider when assessing their auditor.

Monday, September 26, 2022

The AUASB welcomes the recent announcement from the International Organization of Securities Commissions (IOSCO) of its support and encouragement for the International Auditing and Assurance Standards Board’s (IAASB) work on developing standards relating to assurance of sustainability-related information. IOSCO’s statement endorses the need for a globally consistent approach to this issue being led by the IAASB, which then the AUASB are likely to review and adopt (subject to any local conforming amendments) as is the case with other IAASB standards.

The Australian National Centre for Audit and Assurance Research (ANCAAR) and AUASB hosted a joint Research and Regulation workshop on 15 and 16 September in Canberra. The objective of the workshop was to explore research that is relevant to the AUASB’s standard setting agenda as part of our Evidence Informed Standard Setting Strategy. The workshop was attended by AUASB staff, leading auditing and assurance academics and representatives from regulators and the accounting professional bodies. Some of the topics discussed were assurance over Sustainability Reporting, Going Concern, Fraud, the Auditing of Less Complex Entities, Internal Control Reporting, and Public Sector Auditing.

The AUASB has issued an updated version of GS 003 Assurance Relating to Australian Financial Services Licenses issued under the Corporations Act 2001 which has been revised primarily to reflect the changes to the reporting framework under ASIC Form FS 70 Australian financial services licensees: profit and loss statement and balance sheet and AASB 1053 Application of Tiers of Australian Accounting Standards.

AUASB September 2022 Meeting Highlights are now available, click here to read.

The Public Agenda and Public Papers for AUASB Meeting 131 are now available.

Register to participate in a joint AUASB/APESB Webinar on proposed revisions relating to Public Interest Entities (PIEs), including the new definition and proposed transparency disclosure in the auditor’s report.

The AUASB’s Digital Standards Portal (“the portal”) has been recently updated to include new features which enhance the accessibility, functionality and usability of the full suite of AUASB Standards. Since the release of the portal in June 2021, the AUASB has updated many of the key features based on feedback received from users.

Today the AASB and AUASB submitted their response to the ISSB’s Exposure Drafts on [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and [Draft] IFRS S2 Climate-related Disclosures.

We want your feedback. This is the last chance to have your say on the AUASB’s future Work Program and Priorities.

Please submit your response to the AUASB Agenda Consultation Paper or fill out an online survey, which should take approximately 10-15 minutes to complete. Comments are requested to the AUASB by 29 July 2022.

The AUASB has released a Consultation Paper seeking public comment on the IAASB’s Exposure Draft issued in response to recent Revisions to the IESBA Code which introduce a transparency requirement for firms to publicly disclose when the independence requirements for PIEs have been applied.

In addition to the invitation to comment on the Paper, the AUASB is hosting a Webinar on 26 August to take stakeholders through the key proposals of the IAASB ED, and to provide stakeholders an opportunity to provide feedback directly.

The AUASB are undertaking initial discussions with stakeholders on GS 003 Assurance Relating to Australian Financial Service Licenses (AFSLs) issued under the Corporations Act 2001 (GS 003) to determine that the guidance is still fit for purpose.

The July 2022 AUASB Newsletter is now available. This newsletter covers the major recent publications and developments from the AUASB.

The AUASB conducted a post implementation review (PIR) on ASAE 3100 Compliance Engagements (ASAE 3100) in accordance with the AUASB Due Process Framework to gather information about the use and application of the standard since it was issued in February 2017.

Preparers and auditors of financial reports are facing a challenging 30 June 2022 reporting period arising from the impact of topical and emerging risks, and the changing and uncertain economic conditions.  This AUASB Bulletin complements ASIC’s Areas of Focus for 30 June 2022 and highlights how relevant Auditing Standards and existing guidance supports auditors to perform a high-quality audit in the current economic and external environment

The AUASB has issued FAQs to assist auditors in understanding their responsibilities for General IT Controls (GITCs) as part of the new ASA 315 Identifying and Assessing the Risks of Material Misstatement, which includes new and updated material about the auditor’s understanding of IT.

The AUASB has released an updated version of Guidance Statement GS 023 Special Considerations – Public Sector Engagements (GS 023) which includes further application and explanatory material to support public sector auditors in applying Auditing Standard ASA 570 Going Concern to public sector engagements.  GS 023 is to be read and applied together with ASA 570

The AUASB has issued for public comment Exposure Draft ED 02/22 Proposed Conforming and Consequential Amendments to the other AUASB Standards to align to the IAASB Other Standards. The closing date for public comment is 22 August 2022.

The AUASB is seeking feedback from stakeholders on proposed conforming and consequential amendments to the other AUASB Assurance Standards which will align their terminology relating to Ethical and Quality Management requirements with that used in the IAASB’s other standards.

The AUASB has issued an updated version of GS 16 Bank Confirmation Requests which has been revised to reflect the increase in the use of electronic confirmations by auditors.  

AUASB June 2022 Meeting Highlights are now available, click here to read. 

The Public Agenda and Public Papers for AUASB Meeting 130 are now available.

The AUASB is seeking feedback from stakeholders on its Agenda Consultation Process for 2022-23. This process is conducted every 5 years and gathers views from Australian stakeholders on which projects the AUASB should address over the next few years, and identify other emerging Australian auditing and assurance issues the AUASB should include in its future Work Program.

Feedback from stakeholders and the public is sought via a response to our formal Agenda Consultation Paper, via in person and online outreach events the AUASB will be holding over June and July 2022, or via an online Survey.

The June 2022 AUASB Newsletter is now available. This newsletter covers the major recent publications and developments from the AUASB.

The AUASB have issued a Research Report authored by AUASB Scholar Dr. Shan Zhou, summarising and discussing key studies on the current practice of climate-related and other non-financial information disclosures, and whether this information is subject to assurance, and by whom. This report presents the findings from studies that examine the extent of, and quality of such disclosures, both internationally and in Australia, as well as the impact of reporting on market value. This provides an important ‘snapshot’ of the current practice in reporting and assurance, and points to the need for consideration of regulation to drive consistency.

The AUASB has released the revised          ASA 600 Audits of a Group Financial Report (Including the Work of Component Auditors), ASA 600 is expected to enhance audit quality by reinforcing the accountability and ultimate responsibility of the Group Engagement Partner, adopting a risk-based approach to planning and performing a group audit engagement, and emphasising the need for robust communication and interactions between the group and component auditors.

The AUASB has published a new Bulletin which highlights how the new and revised Quality Management Standards will support enhanced audit quality. 

The AUASB has issued for public comment Exposure Draft ED 01/22 Proposed Conforming and Consequential Amendments to the Australian-Specific AUASB Standards as a result of the New and Revised Quality Management Standards. The closing date for public comment is 10 June 2022.

The IAASB has released non-authoritative guidance, The Fraud Lens – Interactions Between ISA 240 and Other ISAs. The guidance illustrates the relationship and linkages between ISA 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, and other ISAs when planning and performing an audit engagement.

AUASB April 2022 Meeting Highlights are now available, click here to read.

The Public Agenda and Public Papers Pack for AUASB Meeting 129 are now available.

The April 2022 AUASB Newsletter is now available. This newsletter covers the major recent publications and developments from the AUASB.

The AUASB are undertaking a Post Implementation Review on ASAE 3100 Compliance Engagements (ASAE 3100) through targeted outreach sessions with key stakeholders.

The AUASB has commenced the process of modernising Guidance Statement GS 016 Bank Confirmation Requests, reflecting the wide spread adoption of third-party electronic confirmation systems and processes now in use. 

AUASB March 2022 Meeting Highlights are now available, click here to read.

A Revised Agenda (as at 7 March 2022) and Public Papers for AUASB Meeting 128 is now available.

Following extensive consultation with stakeholders the AUASB submission on the IAASB’s Exposure Draft for the Audits of Less Complex Entities has been finalised, with the proposed standard not supported by the AUASB in its current form for a number reasons.

The December 2021 AUASB Newsletter is now available. This newsletter covers the major recent publications and developments from the AUASB. 

To continue to drive the AUASB’s ongoing strategic focus on Extended External Reporting (EER), the AUASB jointly with the AASB (the Boards) has released a staff paper Globally consistent reporting for sustainability-related information: Australian perspectives.

Our offices will be closed for the holiday period from cob 22 December 2021 and will re-open on Monday 10 January 2022.  We wish you a happy and safe holiday period.

The AUASB has released a new Guidance Statement GS 023 Special Considerations - Public Sector Engagements (GS 023), which provides supplementary application and other explanatory material in relation to issues that at times present challenges applying certain AUASB Standards on public sector audit and assurance engagements. Like all AUASB Guidance Statements, GS 023 is to be read and applied together with relevant AUASB Standard(s).

The AUASB has now released the final video in the Quality Management awareness series, Your 5-minute guide to Quality Management on an audit engagement.  This video takes you through the highlights of the revised ASA 220 including explaining the new definition of engagement team, how delegation on an audit engagement might work and the new overall stand-back provision.

These new and revised standards will be effective sooner than you think, the AUASB will continue to provide and work with others to provide implementation support materials.

Looking for ASA 315 resources and answers to some commonly asked questions about implementing ASA 315? Look at our dedicated web page on the AUASB website relating to ASA 315 from December 2021.

AUASB November/December 2021 Meeting Highlights are now available, click here to read.

In response to the release of ASIC’s Audit inspection report 1 July 2020 to 30 June 2021, the AUASB issued a media release.  In addition the AUASB has issued an AUASB Bulletin Supporting Auditors in Enhancing Audit Quality which details a number of specific actions including issuing revised standards and other guidance materials to clarify and drive improved compliance with the requirements in the auditing standards.

The AUASB’s latest short video to promote awareness of the new Quality Management Standards has landed with the release of Your 5-minute guide to ASQM 2 Engagement Quality Reviews.  ASQM 2 is a new standard and this video takes you through which engagements require an Engagement Quality Review under ASQM 1, the eligibility of the Engagement Quality Reviewer and some of the highlights of what their responsibilities relating to performance and documentation entails.

The IAASB and IFAC have launched a survey to make it easier to participate in the IAASB’s consultation and provide views.

The FRC, AASB and AUASB have released a Position Statement setting out how the current institutional arrangements will address the desire for authoritative Extended External Reporting requirements in Australia.

The Agenda for AUASB Meeting 127 is now available.

The current Auditing and Assurance Standards Board (AUASB) Chair, Mr Bill Edge, has been appointed as a member of the International Auditing and Assurance Standards Board (IAASB) for 3 years commencing January 2022.

The AUASB’s latest short video to promote awareness of the new Quality Management Standards has landed with the release of Your 5-minute guide to the Risk Assessment Process.  This video takes you through the operation of the ASQM 1 risk assessment process that is required when designing and implementing an Audit firm’s quality management system.

Due to the overwhelming response to the AUASB virtual roundtable on 9 November 2021, the AUASB has closed the registration for that date and opened an additional virtual roundtable on 17 November 2021 from 2.00 pm - 4.30 pm (AEDT).

Please register here.

As part of the AUASB’s series of short videos to promote awareness of the new Quality Management Standards, the AUASB has released Your 5-minute guide to ASQM 1. This video takes you through the revised risk-based approach now required when designing and implementing an Audit firm’s quality management system, and why this change has been adopted.

Auditing and Assurance Standards Board Chair, Mr Bill Edge, welcomes the appointment of two new members of the AUASB, as announced by the Financial Reporting Council (FRC) and the notes the tremendous contribution of three members retiring from the AUASB this year.

The AUASB is holding a roundtable to gather stakeholder’s views and input to the Consultation Paper Exposure of the IAASB’s Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE); and Consideration of Possible alternative options for Australian LCE audits (Consultation Paper).  

The roundtable will be held as a virtual session on Tuesday 9 of November 2021 from 9.00 am - 11.30 am. Please register here.

Are you a practitioner who performs audits on less complex entities or a user of less complex entities auditor’s reports? If so, this information webinar is for you. 

The AUASB has revised the following pronouncements which are available on the AUASB Website and AUASB Standards Digital Portal:

• ASA 101 Preamble to AUASB Standards
• ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards
• ASA 560 Subsequent Events
• ASA 700 Forming an Opinion and Reporting on a Financial Report
• ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks
• Foreword to AUASB Pronouncements

The AUASB is developing a range of implementation support materials for the new and revised AUASB Quality Management Standards. First up is a series of Five-Minute Video Guides introducing each of the key elements practitioners need to know.

The September 2021 AUASB Newsletter is now available. This newsletter covers the major recent publications and developments from the AUASB.

GS 010 has been significantly enhanced to provide additional guidance on how to respond to questions auditors may receive at an Annual General Meeting (AGM).

The AUASB has released a Consultation Paper seeking public comment by 14 January 2022 on the IAASB’s new stand-alone standard for Audits of Financial Statements of Less Complex Entities, as well as Consideration of Possible Alternative Options for Australian LCE Audits.

AUASB September 2021 Meeting Highlights now available, click here to read.

The AUASB has released the first of two publications on determining the integrity and reliability of data in an audit of a financial report.

This first publication outlines a number of considerations for auditors in the extraction, transfer and transformation of data, including documentation of how integrity has been maintained throughout the process.

The Agenda and Public papers for AUASB Meeting 126 is now available.

The purpose of this AUASB Bulletin is to introduce the International Auditing and Assurance Standards Board (IAASB) Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements (the Guidance) and provide the Australian context for the non-authoritative guidance published by the IAASB in 2021.

The AUASB has appointed Dr. Shan Zhou, a senior lecturer, at The University of Sydney, Accounting, Business School, as an Honorary AUASB Scholar from 1 August 2021.

The IAASB has developed a new draft standard for the audit of a Less Complex Entity  ED ISA-LCE. Find out more about the AUASB’s plan to support the IAASB’s consultation on this draft new standard which will occur over the next 6 months.

The AUASB recognises the importance of the new international proposals for audits of Less Complex Entities and will issue a Consultation Paper to Expose ED ISA-LCE.  The AUASB Consultation Paper will provide an overview of how the AUASB is requesting feedback from Australian stakeholders on the proposed new standard.  Additionally, and importantly, the AUASB will seek stakeholder feedback on potential areas to further explore that will seek to specifically assist Australian stakeholders in the area of auditing less complex entities.   

Looking for resources and answers to some commonly asked questions about implementing the new AUASB Quality Management Standards?  Check out our new dedicated Quality Management Standards page on the AUASB website.

Mr Bill Edge, has been appointed as AUASB Chair for a 12-month period commencing 1 July 2021.

Three vacancies currently exist for appointment as a part-time member of the Auditing and Assurance Standards Board (AUASB), starting in January 2022 for a three year term (with a possible extension available).  Click here to obtain further information from the Financial Reporting Council (FRC) website)

The AUASB seeks public comment by 30 July 2021 on ED 03/21 Proposed Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events.

The June 2021 AUASB Newsletter is now available. This newsletter includes the major publications and developments from the AUASB over the past month.

The AUASB has issued for public comment Exposure Draft ED 02/21 Proposed Auditing Standard ASA 101 Preamble to AUASB Standards, which will replace ASA 100 Preamble to AUASB Standards (issued 2006) and ASA 101 Preamble to Australian Auditing Standards (issued 2009). 

The closing date for public comment is 30 July 2021.

A vacancy has arisen for the on the Audit, Finance and Risk Committee for the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB). 

The AASB & AUASB are seeking an outstanding person, who can provide sound judgement and stewardship of the Committee, demonstrate extensive financial expertise, industry leadership and will have community standing as an experienced governance officer.

AUASB June 2021 Meeting Highlights now available, click here to read.

The Australian Auditing and Assurance Standards Board (AUASB) has launched the first fully interactive website to make it easier for professionals to access and use their standards.

The new website https://standards.auasb.gov.au/ can be accessed on multiple devices, from desktops, to...

The Agenda and Papers for AUASB Meeting 125 are now available

On 25 May 2021, AASB and AUASB staff co-presented the third webinar in a series on the removal of special purpose financial statements and the introduction of simplified disclosures.

The IAASB is consulting on its Work Plan for 2022–2023 through an online survey.

The AUASB has released a new AUASB Bulletin on The Consideration of Cyber Security Risks in an Audit of a Financial Report. This Bulletin is designed to assist auditors consider the impact of cyber security on the audit of a financial report performed in accordance with Australian Auditing Standards.

The AUASB Staff have published a guide to assist assurance prescribers in drafting assurance requirements which are clear and effective. The guide addresses a number of matters including determining the appropriate scope of an engagement, the different levels of assurance and the options in Australia available to perform engagements.

AUASB April 2021 Meeting Highlights now available, click here to read.

The IAASB published a Non-Authoritative Guidance on Applying ISAE 3000 (Revised) to Extended External Reporting (EER) Assurance Engagements.

The guidance responds to ten key stakeholder-identified challenges commonly encountered in applying ISAE 3000 (Revised). The guidance promotes the consistent high-quality application of the assurance standard EER assurance engagements to:

AUASB Staff Podcast - Auditors face changes in audit quality management standards - what are they and why are they important?

AUASB staff members Matthew Zappulla and Rene Herman have been featured in a podcast hosted by journalist Tom Ravlic asking “Auditors face changes in audit quality management standards - what are they and why are they important?”.

AUASB Bulletin Audit Considerations on the removal of special purpose financial statements for certain for-profit private sector entities details the matters for auditors to consider as a result of the recent amendments to the Australian Financial Reporting Framework which:

The AUASB seeks public comment by 14 May 2021 on ED 01/21 Proposed Conforming and Consequential Amendments to the other AUASB Standards as a result of the New and Revised Quality Management Standards.

The March 2021 AUASB Newsletter is now available. This first newsletter for 2021 includes the major publications and developments from the AUASB since the start of the year. 

The AUASB today released three revised Quality Management Standards. The standards promote a robust, proactive, scalable, and effective approach to quality management and mark a significant evolution of the existing quality control standards.

This IAASB FAQ assists auditors in understanding and addressing the risk of overreliance on technology, whether it arises from using automated tools and techniques or from using information produced by an entity’s systems.

The AUASB has released a revised version of the Foreword to AUASB Pronouncements (Foreword).  Changes were necessary to align the Foreword with the AUASB’s new Due Process Framework for Developing, Issuing and Maintaining AUASB Pronouncements and Other Publications (Due Process Framework), which was approved by the AUASB at its December 2020 meeting and subsequently published for comment.  A small number of other amendments were made to the Foreword to bring its content up to date and to improve linkage to related framework pronouncements and policy documents.

AUASB March 2021 Meeting Highlights now available, click here to read.

The Office of the Auditing and Assurance Standards Board would like to extend its congratulations to our current Acting Chair, Bill Edge, who has been included in the group of 2021 inductees into the Australian Accounting Hall of Fame.

Looking for ASA 540 resources and answers to some commonly asked questions about implementing ASA 540? Look at our new dedicated portal on the AUASB website relating to Auditing Accounting Estimates. Auditing Accounting Estimates continues to be the area with the most findings in ASIC’s Audit Inspection Report so we recommend auditors refer to these materials as they may assist.

The Auditing and Assurance Standards Board are pleased to release the 2nd report on Audit Quality in Australia: The Perspective of Audit Committee Chairs. This report presents the results of a survey conducted jointly with the FRC to gather the perspective of Audit Committee Chairs (ACCs) on audit quality.

The AUASB has finalised its submission to the IAASB's Fraud and Going Concern in an Audit of Financial Statements Discussion Paper.

The AUASB has completed its review of its internal processes for developing, issuing and maintaining AUASB Standards, Guidance Statements and other related materials. The new Due Process Framework for Developing, Issuing and Maintaining AUASB Pronouncements and other Publications is now open for public comment until Friday 29 January 2021. 

The IAASB has published a new communique detailing plans for a new standalone LCE standard, including current thinking on what the standard will look like, what entities it will apply to, and the development timeline.

Research Report 5: COVID-19 Snapshot of Auditor Reporting in Australia, authored by AUASB Staff James Wake and Anne Waters, provides a snapshot and analysis of auditor reporting for listed entities over the June 2019 and 2020 reporting seasons, focussing on the impact of the COVID-19 pandemic.

Looking for ASA 540 resources and answers to some commonly asked questions about implementing ASA 540?  Look at our new dedicated portal on the AUASB website relating to Auditing Accounting Estimates.

The AUASB has released a revised version of ASRS 4400 Agreed-Upon Procedures Engagements which is operative for agreed-upon procedures engagements for which the terms of engagement are agreed on or after 1 January 2022 (with early adoption permitted).

The International Auditing and Assurance Standards Board (IAASB) Technology Working Group released a new non-authoritative frequently asked questions publication on using automated tools and techniques in identifying and assessing risks of material misstatements in accordance with International Standard on Auditing 315 (Revised 2019), Identifying and Assessing Risks of Material Misstatement.

The IAASB has published video introductions to the new and revised quality management standards. The videos explain the key aspects of the new and revised quality management standards to help stakeholders begin their implementation efforts.

The IAASB is on the edge of something new as they continue on the path to address, complexity and scalability in the ISAs.

The Auditing and Assurance Standards Board (AUASB) welcomes the release of the final report of the Parliamentary Joint Committee’s (PJC) on Corporations and Financial Services Inquiry on the Regulation of Auditing in Australia.

The AUASB seeks feedback on the IAASB's Discussion paper on Fraud and Going Concern.

As the auditor’s role in relation to fraud and going concern in audits of financial statements continues to receive heightened public attention, amplified by high-profile corporate failures, the IAASB has recognised the need to further explore these topics, and has released a Discussion Paper on Fraud and Going Concern in an Audit of Financial Statements to seek feedback. The feedback collected by the IAASB will inform decisions about possible further actions on these topics. The AUASB seeks feedback from Australian stakeholders to inform them in providing feedback to the IAASB on these important topics.

The ISA 540 (Revised) Implementation Working Group has published a series of illustrative examples designed to assist auditors in addressing certain requirements of ISA 540 (Revised):
• Illustrative example for auditing a simple accounting estimate
• Illustrative example for auditing a complex accounting estimate
• Illustrative examples for auditing expected credit loss accounting estimates

The AUASB has issued a revised version of AUASB Guidance Statement GS 012 Prudential Reporting Requirements for Auditors of Authorised Deposit-taking Institutions (ADIs) and ADI Groups.  The revised GS 012 provides guidance to the appointed auditor of an ADI and/or ADI group, reporting pursuant to the prudential reporting requirements specified by APRA in Prudential Standards APS 310/3PS 310 Audit and Related Matters, and APS 910 Financial Claims Scheme.

AUASB Chair, Professor Roger Simnett welcomed the reappointment of two members of the Auditing and Assurance Standards Board, as announced by the Financial Reporting Council (FRC).

Roger Simnett, AUASB Chair was featured in a podcast hosted by journalist Tom Ravlic asking “Should there be a cut down version of auditing standards for auditors dealing with simple entities?”.

The AUASB in conjunction with the CA ANZ and CPA Australia is seeking input from Australian stakeholders in order to inform them on the important topic of fraud in the audit of financial statements. To facilitate gathering stakeholder’s views and available evidence, the AUASB are holding a roundtable for audit practitioners, audit academics, standard setters, financial report preparers, forensic accountants, insolvency practitioners and regulators to explore the questions raised in a recent IAASB’s discussion paper on this topic. 

Each year, the Auditing and Assurance Standards Board (AUASB) invites one or more graduate or postgraduate Accounting students to participate in their Graduate Program. The Graduate Program will allow students to gain experience and exposure to all facets of auditing and assurance standard setting, from the technical behind-the-scenes work required to create or amend standards, through to project management, communications, and research. Applications close 23 October 2020, click here for further information.

This IAASB FAQ assists auditors in understanding whether a procedure involving automated tools and techniques may be both a risk assessment procedure and a further audit procedure.

It also provides specific considerations when using automated tools and techniques in performing substantive analytical procedures in accordance with International Standard on Auditing 520, Analytical Procedures (AUASB equivalent ASA 520 Analytical Procedures

The IAASB is seeking feedback via a survey from Auditors and users of Auditor Reports on the changes that were made to the Auditors’ Report implemented from December 2016. This feedback will influence the direction of the IAASB and whether there will be future changes to the auditor’s report. The AUASB also wants to hear your views. This is an extensive survey and stakeholders may find it useful to draft and edit this in word before completing and submitting it online. As this is a confidential response to the IAASB, if considered appropriate, we also ask that stakeholders provide us a copy of your response to the survey (in word form) or send us your main points via email, as well as completing this online to the IAASB, in order to inform AUASB’s deliberations.

The IAASB survey closes on 23 October 2020. the AUASB would appreciate any feedback before this date in order to inform them on their response.

The AUASB Meeting 119 Agenda is now available

The AUASB has amended the Auditor’s Responsibilities Statements resulting from the revised APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

The AUASB issues conforming amendments to the Australian Auditing Standards resulting from the revised APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

The AUASB Chair, Professor Roger Simnett AO, welcomes the release of the Monitoring Group’s (MG) final report Strengthening the International Audit and Ethics Standard-Setting System, describing enhancements to the international audit and ethics standard-setting systems. These are aimed at enhancing the governance arrangements of the International Audit and Assurance Standards Board and International Ethics Standards Board for Accountants.

IFAC invites auditing and assurance practitioners to join its weekly webinar series – ‘Practical Audit Quality Considerations for Auditing in the Pandemic Environment - Planning, Execution, Auditor Reporting and Looking Ahead', starting on Thursday July 9.

The AUASB has released the revised ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (July 2020) with the operative date being for financial reporting periods commencing on or after 1 July 2020 with early adoption permitted.

The AUASB has issued a revised GS 009 Auditing Self-Managed Superannuation Funds (GS 009). The revised Guidance Statement identifies and clarifies the responsibilities approved self-managed superannuation fund (SMSF) auditors have with respect to conducting SMSF audit engagements.

The AUASB today released a Consultation Paper on the exposure draft of proposed International Standard on Auditing (ISA) 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors. Comments are requested by 4 September 2020.

The AUASB congratulates its Chair, Professor Roger Simnett on his induction into the Australian Accounting Hall of Fame…

A vacancy has arisen on the Audit, Finance and Risk Committee for the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB).

COVID-19 is having an unprecedented impact on the economic outlook for the Australian and global economy. For the first time, many entities will be required to consider their solvency and ability to continue operating as a going concern in more detail. The AASB and AUASB have released a new publication on the impact of COVID-19 on Going Concern and related assessments.  Refer to the COVID-19 page for this and a series of FAQs on matters for auditors to consider.

The coronavirus pandemic has thrown up a range of issues directors and auditors must worry about as they examine financial issues that stakeholders will see play out for the June 30 year end.

The COVID-19 pandemic may impact the work of auditors in relation to auditing accounting estimates and related disclosures. The AUASB have released a series of Frequently Asked Questions (FAQs) on this topic which are designed to assist practitioners apply revised ASA 540 Auditing Accounting Estimates and Related Disclosures on this issue.  The FAQs are suitable for reference by auditors whether or not they have adopted the recently revised ASA 540.

The AUASB held a Webinar on 27 April 2020 on the proposed revisions to ASRS 4400 Agreed-Upon Procedures Engagements (ED 01/20) which can be accessed here. We encourage all our stakeholders to respond to the AUASB on this Exposure Draft by 11 May 2020.

The AUASB extends its congratulations to our current AUASB Board member and NZAuASB Chair Robert Buchanan on his appointment to the Public Interest Oversight Board (PIOB)—the global, independent oversight body that seeks to improve the quality and public interest focus of the international audit and assurance, and ethics standards.

Are you a practitioner who performs agreed-upon procedures engagements or a user of agreed-upon procedures reports?  Have you seen the recently released Exposure Draft 01/20: Proposed Standard on Related Services ASRS 4400 Agreed-Upon Procedures Engagements (ED 01/20)?  If so, this webinar on Monday, 27 April at 11am is for you.

On 26 March 2020, the AUASB, in conjunction with the CA ANZ and CPA Australia, presented an interactive webinar discussing the IAASB’s proposed scope for revising ISA 500 Audit Evidence. The webinar explored the key challenges identified by the IAASB in applying the audit evidence standard, the fundamental issues not covered by the challenges and how the challenges could be addressed. We are now seeking feedback from Australian stakeholders on the IAASB’s proposals.

The AUASB is pleased to advise that The Financial Reporting Council (FRC) has this week announced the appointment of a new member of the Auditing and Assurance Standards Board (AUASB).