Research

Research can support the AUASB in its standard-setting decision-making. See the AUASB Evidence-Informed Standard-Setting (EISS) Strategy.

To serve the public interest, the AUASB must develop, issue and maintain high-quality Australian auditing and assurance standards and guidance that: 

• meet the needs of external report users for confidence in the quality of reporting, and the usefulness and reliability of information reported;
• respond appropriately to emerging issues, including changing technologies; and
• promote audit quality and are equal to or exceed international standards.

 Research examples

Examples of areas that might be relevant include;

• Mandatory sustainability assurance 
  • What is the quality of the audits and reviews of sustainability information?
  • Does the appointment of different audit firms for the financial report and sustainability report affect audit/review quality and, if so, how?
  • What is the demand for assurance, the preparedness of entities for assurance and the ability of auditors and experts to meet the demand?
  • Is the work effort of auditors consistent for limited assurance engagements?
  • Does the move from limited to reasonable assurance, result in prior period material misstatements being detected?
  • What is the understanding of users of ‘limited’ and ‘reasonable’ assurance and what are their expectations from assurance?
  • When subject to assurance, how are auditors addressing any practical issues with obtaining information and assurance through value chains?
  • When subject to assurance, how do auditors address forward-looking information?
  • How are auditors addressing materiality and proportionality mechanisms?

• Emerging technologies, including AI
  • Are tools that use new technologies being used more in audits and how effective are those tools?
  • Are auditors addressing issues with the use of technology by audited entities (e.g. loss of audit trail, inability to access models used)?
  • How effectively are the risks associated with the use of AI and other tools being managed by auditors?

• Audit quality
  
  • How effective are audit firms in establishing and maintaining cultures and behaviours focussed on audit quality and professional scepticism?
  • How effective are directors and audit committees in supporting audit quality?
  • To what extent are auditors responsible for material changes to reports before they are issued?
  • What is the level of material changes to reports following a change in audit firm or audit partner?

• Half-year financial reports
  • How do investors and directors perceive differences between full year audits and half-year reviews?
  • Have material misstatements been identified following full year audits that were not identified in the preceding half-year review?

• Audit and assurance reports
  • What are the needs of users and how useful is the information presented in auditor’s reports?
  • How do investors use key audit matter disclosures and do these disclosures affect their decision making?
  • Does the disclosure of key audit matters change auditor behaviour?
  • What are user perceptions of, and the impact of, changes in auditor reporting under the new going concern and fraud standards?

• Other assurance matters
  • How well is the requirement to read 'other information' understood by auditors, directors and investors in the context of financial and sustainability reports?
  • How would sub-fund reporting for registrable superannuation entities affect the cost of assurance?
  • How do sampling methodologies differ between firms and how consistent are sample sizes across firms in similar circumstances?

If you have research that may inform our standard setting work, please contact us at [email protected]. 

Research Reports

The AUASB publishes reports on research relevant to auditing and assurance standard-setting and audit quality. The following Research Reports have been published.