News

27
JULY
2021
AUASB

IAASB releases Draft standard for Audits of Less Complex Entities

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...

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26
JULY
2021
AUASB

New resources and answers to commonly asked questions about implementing the new AUASB Quality Management Standards

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

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23
JULY
2021
AUASB

Reminder: Request for Comments on AUASB Exposure Drafts ED 02/21 and ED 03/21

Reminder The AUASB seeks public comment on the following Exposure Drafts

  • ED 02/21 Proposed Auditing Standard ASA 101 Preamble to AUASB Standards ; and
  • ED 03/21 Proposed Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events

The closing date for public comment on both Exposure Drafts is 30 July 2021

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Mr Bill Edge appointed as full time AUASB Chair for 12-month period

23 Jul
2021
23 July 2021

The Assistant Treasurer has appointed Mr Bill Edge current Acting Chair of the Auditing and Assurance Standards Board (AUASB) as the full-time Chair of the AUASB for a 12-month period from 1 July 2021

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Positions Vacant on the Auditing and Assurance Standards Board for 2022

05 Jul
2021
05 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)

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Request for Comments on AUASB Exposure Draft ED 03/21 Proposed Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events

30 Jun
2021
30 June 2021

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 key proposals contained in ED 03/21 are to

  • achieve harmonisation with ISA (NZ) 560 Subsequent Events which was amended in February 2020; and
  • propose amendments to ASA 560 to clarify the timing of communications and provide guidance on the possible actions the auditor may take when facts become known to the auditor after the financial reports have been issued that had it been known to the auditor at the date of the auditor’s report may have caused the auditor to amend the auditor’s report

The Explanatory Memorandum accompanying ED 03/21 provides further information on the proposed amendments and stakeholder feedback that is

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The June 2021 AUASB Newsletter is now available

30 Jun
2021
30 June 2021

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

The newsletter covers items such as

  • Highlights from the AUASB’s June meeting
  • The release of the new AUASB Digital Standards Portal
  • Request for Comments on AUASB Exposure Draft 03/21 Proposed Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events
  • Request for Comments on AUASB Exposure Draft ED 02/21 Proposed Auditing Standard ASA 101 Preamble to AUASB Standards
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Request for Comments on AUASB Exposure Draft ED 02/21 Proposed Auditing Standard ASA 101 Preamble to AUASB Standards

16 Jun
2021
16 June 2021

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

The key proposals contained in ED 02/21 are to

  • expand the scope of the existing ASA 101 to apply to all AUASB Standards; and
  • amend ASA 101 to include additional interpretive guidance for example from ASA 100 to improve stakeholder understanding of the key components of AUASB Standards

The Explanatory Memorandum accompanying ED 02/21 provides further information on the proposed changes to the existing ASA 101 and stakeholder feedback that is sought

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Audit and Risk Committee vacancy

16 Jun
2021
16 June 2021

Audit and Risk Committee Vacancy

  • High-profile Non-Corporate Commonwealth Entity
  • Key governance opportunity at Group-level
  • Renumerated role on Audit Finance and Risk Committee

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

About the AASB & AUASB

The AASB and the AUASB are Australian Government agencies under the  Australian Securities and Investments Commission Act 2001

The outcome of the AASB is developing issuing and maintaining principles-based Australian accounting and external reporting standards and guidance that meet user needs and enhance external reporting consistency and quality

The AUASB outcome is developing issuing and maintaining in...

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Highlights of June 2021 Meeting now available

11 Jun
2021
11 June 2021

AUASB June 2021 Meeting Highlights now available click here to read

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New AUASB Board Member Announced by FRC

26 May
2021
26 May 2021

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)

Mrs Michelle Shafizadeh Director Governance and Risk Advisory Moore Australia (WA) Pty Ltd has been appointed to the AUASB on a part-time basis commencing from 1 July 2021 and her tenure will expire on 31 December 2023

Michelle has over 28 years within a public sector audit office and large mid-tier firms bringing a wealth of knowledge and experience to the AUASB

Please join us in

...
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Registration for AUASB Board Meeting 8-9 June 2021

26 May
2021
26 May 2021

The Agenda and Papers for AUASB Meeting 125 are now available

Members of the public are advised this will be an in-person meeting Public attendance in-person is via registration only Public should register their interest in attending the public sessions by emailing [email protected] gov au detailing
•  Name
•  Entity
•  Email address and
•  Details of sessions they wish to attend

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AASB–AUASB webinar – For-profit entities: The removal of special purpose financial statements and the introduction of simplified disclosures (Part 3)

25 May
2021
25 May 2021

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

This webinar outlined the audit implications for
• entities transitioning from special purpose financial statements; and
• entities transitioning from Tier 2 – Reduced Disclosure Requirements

The slide pack can be found   here A recording of the webinar is also available on our YouTube channel for those of you who missed it Watch it   here

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Share your views on the IAASB’s upcoming Work Plan

11 May
2021
11 May 2021

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

The survey is designed to help the IAASB develop its Work Plan for 2022–2023 through understanding what is important to its stakeholders On the basis that work will commence on one or two new topics in 2023 the IAASB is seeking stakeholder views about what topic(s) should be considered for future standard-setting activities   Feedback to this consultation will assist the IAASB in evaluating its priorities and allocating its resources in the best way possible

To influence the future direction of the IAASB work plan the AUASB strongly encourages all Australian stakeholders

...
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The May 2021 AUASB Newsletter is now available

10 May
2021
10 May 2021

The May 2021 AUASB Newsletter is now available This special edition newsletter reflects a number of major publications released by the AUASB since the end of March

The newsletter covers items such as
• Highlights from the AUASB’s May meeting
• The AUASB Bulletin Audit Considerations on the removal of special purpose financial statements for certain for-profit private sector entities
• Newly released AUASB Bulletin on The Consideration of Cyber Security Risks in an Audit of a Financial Report
• AUASB Staff Guide for Prescribing Assurance and Related Services
• AUASB ED 01/21 Proposed Conforming and Consequential Amendments to the other AUASB Standards as a

...
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AUASB Bulletin on The Consideration of Cyber Security Risks in an Audit of a Financial Report

04 May
2021
04 May 2021

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

Depending on the facts and circumstances of an entity cyber security may contribute to the susceptibility to misstatement of certain amounts and disclosures in an entity’s financial report This AUASB Bulletin has been developed with the input of the AUASB’s Technology Project Advisory Group to assist Auditors identify assess and respond to cyber security related risks of material misstatement

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AUASB Staff Guide for Prescribing Assurance and Related Services

27 Apr
2021
27 April 2021

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

This guide will be useful when new legislation is being proposed and/or existing legislation is being revised and an assurance engagement is part of these requirements The guide may also be useful when drafting contracts or other formal agreements where an assurance engagement is required

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Highlights of April 2021 Meeting now available

23 Apr
2021
23 April 2021

AUASB April 2021 Meeting Highlights now available click   here  to read

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IAASB new guidance on assurance for non-financial reporting - AUASB to issue a Bulletin to support the guidance and its application in Australia.

21 Apr
2021
21 April 2021

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

• strengthen the influence of such engagements on the quality of extended external reporting;
• enhance trust in the resulting assurance reports; and
• increase the credibility of extended external reports so that they can be trusted and relied upon by their intended users

Two additional items of  non-authoritative support material  have also been published which are not...

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AUASB Staff Podcast on newly released Quality Management Standards

19 Apr
2021
19 April 2021

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?”

Access a recording of the Podcast  here  or via your usual Podcast platform

What the Auditing and Assurance Standards Board does is critical in ensuring the standards regulating audits and other assurance services are fit for purpose and designed to...

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Audit considerations on the removal of special purpose financial statements for certain for-profit private sector entities

05 Apr
2021
05 April 2021

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

• removes the ability for certain for-profit private sector entities to prepare special purpose financial statements; and
• replaces Tier 2 Reduced Disclosure Requirements general purpose financial statements with a new Tier 2 Simplified Disclosure Standard (AASB 1060)

To further assist preparers and auditors of entities impacted by these changes the AASB and the AUASB staff will run 3 webinars – refer  here

Refer  here  for the AUASB bulletin...

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Request for Comments on AUASB Exposure Draft Aligning Existing Other Assurance Standards with New, Revised Quality Management Standards

01 Apr
2021
01 April 2021

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 International Auditing and Assurance Standards Board (IAASB) has issued for public comment an  exposure draft (ED) on proposed conforming and consequential amendments to the IAASB’s Other Assurance Standards and the International Framework of Assurance Engagements (Framework)  in response to the new and revised Quality Management (QM) standards Consequently the AUASB issued ED 01/21 which represents the Australian exposure of  Proposed Conforming and Consequential Amendments to the other AUASB

The IAASB’s Exposure Draft includes an Explanatory Memorandum (EM) and is provided as an attachment to the ED 01/21 The IAASB’s ED aligns the IAASB’s standards related to review assurance and related services as well as its framework with the quality management standards through conforming amendments...

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The March 2021 AUASB Newsletter is now available

31 Mar
2021
31 March 2021

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 newsletter covers items such as

 

  • Highlights from the AUASB’s March meeting
  • The AUASB’s newly released revised Quality Management Standards ASQM 1 ASQM 2 and ASA 220
  • Implementation support materials on ASA 540 Auditing Accounting Estimates and Related Disclosures
  • The AUASB’s 2nd report on Audit Quality in Australia The Perspective of Audit Committee Chairs
  • An international update featuring recent matters concerning the IAASB IFIAR IFAC and UK Government
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The AUASB has released three revised Quality Management Standards

30 Mar
2021
30 March 2021

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

The standards place greater responsibility on firm leadership for continuously improving the quality of their engagements and remediating when deficiencies are found When effectively implemented the standards should help ensure that a commitment to quality is at the heart of firm strategy and operations

The suite of standards includes

•  ASQM 1 Quality Management for Firms that Perform Audits or Reviews

The standards become effective on 15 December

...
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IAASB Support Materials – FAQ Addressing Risk of Overreliance on Technology

25 Mar
2021
25 March 2021

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

This publication provides a number of examples of how technology may give rise to automation bias and how the firm’s policies or procedures can help auditors address the risk of overreliance

Other technology related IAASB publications
•  Audit Documentation when Using Automated Tools and Techniques
•  ISA 315 – Automated Tools and Techniques FAQ
•  Using Automated Tools and Techniques in Performing Audit Procedures

These publication do not establish or extend the requirements under an existing AUASB Standard(s)

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AUASB issues revised Foreword to AUASB Pronouncements (March 2021)

17 Mar
2021
17 March 2021

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

The Foreword provides an overview of the range and hierarchy of pronouncements and other materials issued by the AUASB   It includes high level principles to determine the purpose authority enforceability and content of pronouncements and other materials issued by the AUASB

Feedback and queries

...
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Highlights of March 2021 Meeting now available

15 Mar
2021
15 March 2021

AUASB March 2021 Meeting Highlights now available click   here  to read

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Auditing and Assurance Standards Board Acting Chair inducted into the Australian Accounting Hall of Fame

22 Feb
2021
22 February 2021

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

The citation supporting Bill’s induction into the Hall of Fame noted his role as a leader in the area of standard setting for the audit profession and the oversight of regulation covering the accounting and auditing profession first as a member and then Chair of both the Australian Auditing and Assurance Standards Board and the Financial

...
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Implementation support materials on ASA 540 Auditing Accounting Estimates and Related Disclosures

16 Feb
2021
16 February 2021

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 series of Frequently Asked Questions provides answers to potential implementation areas that our stakeholders are seeking clarification on   They include questions related to areas such as
• professional scepticism
• risk assessment
• using management’s experts
• disclosures
• documentation

Auditors are highly encouraged to read the ASA 540 resources and Frequently Asked Questions when planning their audit

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Audit Quality in Australia: The Perspective of Audit Committee Chairs (2nd Report)

08 Feb
2021
08 February 2021

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

ACCs are an important constituency in the discussion about audit quality as they play an integral role in aiding and assessing the performance and quality of their external auditor

This report details the results of the survey as well as further insights on ACCs’ perspectives on audit quality The report aims to assist audit committees and auditors as they work together with the goal of improving audit quality and ultimately the integrity of financial reporting

This is the second survey of this type that has been conducted in Australia following  the first in 2018 In order to achieve...

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Acting AUASB Chair appointed 1 January 2021

18 Jan
2021
18 January 2021

Due to the resignation of Professor Roger Simnett AO as Chair of the AUASB The Hon Michael Sukkar MP has appointed Bill Edge (Chair FRC) as Acting Chair of the AUASB for the period 1 January 2021 to 31 March 2021 whilst a longer term replacement is being sought

...
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