Project

Project description

Output to 30 June 2006

Review and reissue of Auditing Standards (by 31 March 2006)

Reviewing and reissuing Auditing Standards as Legislative Instruments using ISAs as a base;

35 legally enforceable standards, Foreword to AUASB Pronouncements and AUASB Glossary issued on 28 April 2006 for application to audits from 1 July 2006. Standards developed as ‘ISA plus’ to meet or exceed the standard required in the equivalent ISA.

Developing a communication plan specific to this project;

Communication plan prepared; Executive briefings with stakeholders held in Melbourne and Sydney; Media releases issued; presentations conducted to CPA, ICAA and NIA members and other forums for stakeholders.

Restructuring the audit framework.

Foreword to AUASB pronouncements and ASA 100 Preamble to AUASB Standards issued to reflect restructured audit framework.

IAASB Projects

Monitoring the activities of the IAASB including the progress of the IAASB Clarity Project;

AUASB Board member and Executive Director attended IAASB meetings and reported to AUASB at each Board meeting. Committed to participate in the redrafting of ISA 210, ISA 250 and ISA 520 in clarity format.

Providing comment on IAASB outputs (such as Exposure Drafts);

Formal submission made on every IAASB exposure draft. Verbal comments provided on IAASB meeting papers and Task Force papers.

Attendance at IAASB meetings;

Representation at all IAASB meetings.

Staff briefings to the AUASB on IAASB meeting papers.

Staff briefings either written or verbal provided to AUASB Board on selected IAASB papers.

Project

Project description

Output to 30 June 2006

Communications strategy

Finalisation of a Communications Strategy;

Communications plan prepared; implementation of strategy ongoing..

Developing and ongoing maintenance of the AUASB website;

Website maintained and updated throughout the year

Liaising with regulators, constituents and media groups.

Attendance at meetings with stakeholders; other liaison specific to issue of legally enforceable standards

Review and reissue of other auditing standards (not issued as legislative instruments) and guidance statements

Reviewing and reissuing other auditing standards and guidance statements (liaising with working parties and experts where appropriate);

AGS 1038 and AGS 1046 reviewed and reissued following stakeholder consultation; Guidance note issued on Auditor’s Report on AASB 1046; Guidance note on Auditor’s Report on AASB 124 in final draft;.

Developing and issuing new auditing standards or guidance statements (for example, compliance auditing).

Working party established to develop AGS 1070 on Special considerations in the audit of risk management requirements for registrable Superannuation Entities and Licensees. Final draft completed

Monitoring of other international standard setters

Monitoring and reviewing the activities of other international standard setting bodies, including the PCAOB, and subsequent reporting to the Board.

Chairman and Principal Executive attendance at Annual IAASB National Standard Setters’ Meeting, Trans-Tasman Audit Working Group and regular meetings with equivalent Auditing Standard setters from USA, UK, France, Canada, NZ and EU. Report to the Board at each meeting on the activities of other standard setters.

Monitoring auditing research undertaken in Australia and internationally

Establishing a Research Committee;

Established but not yet met.

Monitoring auditing research undertaken in Australia and internationally;

Regular updates presented to the Board at each meeting.

Facilitating auditing research in Australia in order to maximise funding opportunities for research that are of interest to or have an impact on the AUASB work plan.

Research to be considered in 2006/2007.

Other ad hoc projects

Participating in and responding to developments or changes initiated by regulators (for example, ASIC and APRA).

Made submissions on Accounting Professional and Ethical Standards Board (APESB) ED 2/06 Quality Control for Firms and ED 3/06 (revision of APS1.1) Conformity with Auditing and Assurance Standards.

AGS 1070 being developed in response to changes to the APRA regulations.

Projects

Assurance (ASAE)

Assurance Engagements: Revision of AUS 108 Framework for Assurance engagements and AUS 110 Assurance engagements Other Than Audits or Reviews of Historical Information

Internal Controls: Revision of AUS 810 Special Purpose Reports on the Effectiveness of Control Procedures, including AGS 1006 Expression of an Opinion on Internal Control

Performance Audit: Revision of AUS 806 Performance Auditing and AUS 808 Planning Performance Audits

Compliance Auditing Engagements: New Standard

Revision of AUS 804 The Audit of Prospective Financial Information

Review Engagement (ASRE)

Revision of ASRE 2400 Review Engagements

Related Services (ASRS)

Revision of AUS 904 Engagements to Perform Agreed-upon Procedures

Projects

Framework and Drafting Principles

Auditing Guidance Statements — General

Revision and re-issuance as Auditing Guidance Statements:

• AUS 524 The Auditor's Use of the Work of the Actuary and the Actuary's Use of the Work of the Auditor in Connection with the Preparation and Audit of a Financial Report

• AUS 522 Audit Evidence Implications of Externally Managed Assets of Superannuation, Provident or Similar Funds and AGS 1026 Superannuation Funds - Auditor Reports on Externally Managed Assets

• Appendices 3 and 5 of AUS 702 relating to Concise Financial Reports

Revision and re-issuance of the following Auditing Guidance Statements:

• AGS 1050 Audit Issues Relating to the Electronic Presentation of Financial Reports

• AGS 1044 Audit Reports on Information Provided Other than in a Financial Report (including current issues in AGS 1040 Franchising Code of Conduct)

• AGS 1002 Bank Confirmation Requests

• AGS 1014 Privity Letter Requests

• AGS 1028 Uncertainty

• AGS 1030 Auditing Derivative Financial Instruments

• AGS 1042 Reporting on Control Procedures at Outsourcing Entities

• AGS 1048 The Special Considerations in the Audit of Small Entities

• AGS 1066 Reporting by Auditors on Compliance with International Financial Reporting Standards

• AGS 1036 The Consideration of Environmental Matters in the Audit of a Financial Report

• AGS 1054 Auditing Revenue of Charitable Entities

• AGS 1062 Reporting in Connection with Proposed Fundraisings

• AGS 1056 Electronic Commerce - Effect on the Audit of a Financial Report

• AGS 1038 Access to Audit Working Papers (revised in 2006)

• AGS 1046 Responding to Questions at an Annual General Meeting (revised in 2006)

Auditing Guidance Statements - Related to Other Regulatory Bodies

Revision and re-issuance of the following Auditing Guidance Statements:

• AGS 1064 Audit Implications of Prudential Reporting Requirements for General Insurers

• AGS1008 Audit Implications of Prudential Reporting Requirements for Authorised Deposit-taking Institutions (ADIs)

• AGS 1068 Audit Requirements for Australian Financial Services Licensees under the Corporations Act 2001

• AGS 1024 Life Insurance Act 1995 - Audit Obligations

• AGS 1052 Special Considerations in the Audit of Compliance Plans of Managed Investment Schemes and AGS 1058 Auditing Mortgage Investment Schemes

• AGS 1070 Risk Management Statements

Guidance on Emerging Issues as required