Appendix F
Auditing and Assurance Standards Board work programme
Status of Auditing and Assurance Standards Board's 2007‑08 work programme
Highest priority projects
| Project | Project description | Output to 30 June 2008 |
|---|---|---|
| Make new and revise auditing standards as legislative instruments | Redrafting and revising Australian Auditing Standards (ASAs) using International Standards on Auditing (ISAs) as a base | The ASA Clarity Redrafting Project was announced in October 2007 and has progressed as follows
Project plan and drafting rules have been established Numerous meetings have been attended with a broad cross section of constituents to best determine the timing of release and implementation Redrafting is in progress and is on track for implementation effective from 1 January 2010 |
| Other auditing standards | Review engagements — revision of ASRE 2410 is in progress and will be released in July 2008 | |
| Review and reissue other auditing standards (not issued as legislative instruments) and guidance statements | Revision and reissue of standards on assurance engagements | AUS 110 was revised and reissued 9 July 2007 as ASAE 3000 assurance engagements other than audits or reviews of historical financial information, operative for reporting periods commencing on or after 1 July 2007 ASAE 3100 compliance engagements was released in June 2008 operative for engagements commencing on or after 1 October 2008 ASAE 3500 performance engagements (revision of AUS 806 performance auditing and AUS 808 planning performance audits will be released in July 2008 |
| Review and reissue other auditing standards (not issued as legislative instruments) and guidance statements (continued) | Reviewing and reissuing other auditing standards and guidance statements |
Guidance statements were issued on the following The use of service organisations for investment management services Using the work of an actuary Electronic publication of the auditor's report |
| Developing and issuing new auditing standards or guidance statements (liaising with working parties and experts where appropriate) | Guidance statements were issued on the following concise financial reports |
|
| Other ad hoc projects | Participating in and responding to developments or changes initiated by regulators such as
ASIC APRA APESB |
Revision and reissue of guidance statements in response to changes in APRA and ASIC regulations Special considerations in the audit of risk management requirements for registrable superannuation entities and licensees Audit implications of prudential reporting requirements for general insurers Audit requirements for Australian financial services licensees under the Corporations Act Interim guidance on reporting for authorised deposit takers Auditor's report on a remuneration report pursuant to section 300A of the Corporations Act Assisting and providing technical advice to regulators and other standards setters Department of Climate Change, on audit requirements under the Greenhouse and Energy Reporting Act Projects are in progress to issue guidance statements on Self managed superannuation funds Investor directed portfolio services Audit implications of GAAP/GFS Accounting standard AASB 1049 |
International: IAASB projects |
Monitoring the activities of the IAASB including the progress of the IAASB clarity project | AUASB and IAASB Board member and Executive Director attended IAASB meetings and reported to AUASB at each Board meeting |
| Contributing directly to IAASB projects by taking a leadership role in redrafting ISAs in the Clarity format | The technical group was responsible for the redrafting of ISA 210 and ISA 250 in clarity format | |
| Providing comment on IAASB outputs (such as exposure drafts) | Formal submission made on all IAASB exposure drafts. 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 key IAASB issues | |
| Monitor other international standards setters | Monitoring and reviewing the activities of other international standard setting bodies, including the PCAOB, and subsequent reporting to the Board | Chairman and Executive Director attendance at annual IAASB-National Standards Setters Meeting, Trans-Tasman Accounting and Auditing Advisory Group and ongoing liaison with other national auditing standards setters, including those from France, Germany, Canada, NZ, USA and UK, reporting to the Board at each meeting on the activities of other standards setters |
| Communications strategy | Finalisation of a communications strategy | Communications plan prepared; implementation of strategy ongoing |
| Development and ongoing maintenance of the AUASB website | Website maintained and updated throughout the year A complete revamp of the AUASB website with improved search facilities is scheduled for release in July 2008 | |
| Liaising with regulators, constituents and media groups | Attendance at meetings with stakeholders; other liaison specific to issue of legally enforceable standards | |
| Presentations at numerous conferences held by the major accounting bodies | ||
| Monitor auditing research undertaken in Australia and internationally | 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 | Committee currently exploring research opportunities |
Auditing and Assurance Standard Board 2008-09 work programme
The AUASB's work program for 2008-09 is aligned to its broad corporate strategies, which are to:
- Develop auditing and assurance standards and guidance of the highest quality that are:
- underpinned by public interest;
- relevant to users;
- reliable;
- internationally convergent;
- sector neutral;
- concise and in plain English;
- drafted to provide clear obligations to the auditor; and
- developed on a timely basis.
- Identify emerging auditing and assurance issues of public interest and address these, as appropriate, on a timely basis.
- Contribute to the development of international auditing and assurance standards that will result in a single set of robust and high quality standards for world-wide use.
- Promote awareness and understanding of the AUASB role and work program, auditor responsibilities and the role of auditing and assurance services.
- Improve processes and policies relating to communication with stakeholders.
The main focus of the 2008-09 work program is to:
Develop and issue legally enforceable auditing standards
The AUASB plans to develop a set of 42 revised and redrafted legally enforceable auditing standards based on the Clarity ISAs, subject to revision:
- for Australian legal and regulatory requirements;
- to a form suitable as a legal instrument; and
- allowing for any additional public interest considerations.
The set of redrafted standards will be operative for reporting periods commencing on or after 1 January 2010.
Revise existing and develop and issue other assurance standards
The AUASB plans to progress and finalise the following projects to formulate new or revised auditing and assurance standards other than legally enforceable standards.
| Projects |
|---|
| Assurance engagements(ASAE): |
| 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 Engagements: (Revision of AUS 806 Performance Auditing and AUS 808 Planning Performance Audits) |
| Revision of AUS 804 The Audit of Prospective Financial Information |
| Review engagements (ASRE): |
| Revision of ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity |
| Issue of ASRE 2400 Review of Financial Reports Performed by an Assurance Practitioner Who is Not the Auditor of the Entity |
| Issue of ASRE 2405 Review of Other Historical Financial Information Other than a Financial Report |
| Related services (ASRS): |
| Revision of AUS 904 Engagements to Perform Agreed-upon Procedures |
Revise existing and develop and issue new guidance statements
The AUASB plans to undertake the following projects to formulate new or revised auditing and assurance guidance pronouncements. Guidance will be revised or formulated in consultation with a working party of stakeholders where necessary, but generally without public exposure. Proposed actions for each project will include preparation of a project plan, establishment of a working party if needed, updates and draft pronouncements for consideration by the AUASB and issuance of finalised guidance.
- APRA regulated areas requiring additional audit guidance;
- ASIC regulated areas requiring additional audit guidance;
- assurance on sustainability matters including the national greenhouse and energy reporting system reports (including Emissions Trading);
- public sector audit issues, including GAAP/GFS reporting;
- SME auditing and assurance issues;
- assurance on prospective financial information; and
- other significant industry specific auditing and assurance matters (including SMSF and XBRL related issues).
International: Participate in standard setting activities of the International Auditing and Assurance Standards Board (IAASB) and liaise with other National Standard Setters
The AUASB plans to continue to maintain its international profile by committing significant AUASB resources to:
- involvement with IAASB meetings;
- contributing directly to IAASB projects by continuing with its role in redrafting ISAs in the Clarity format and providing comments on exposure drafts;
- reflecting international developments in AUASB pronouncements; and
- liaison with other standards setters (such as the United States of America, Canada, the United Kingdom and New Zealand).
Local: Participate in the standard setting activities of relevant Australian organisations
The AUASB plans to monitor emerging issues in the Australian regulatory and business environment and responsibly address significant audit issues that arise from such developments. In addition, the AUASB plans to continue to commit its resources to consider the audit implications of the activities of other related regulatory bodies and the AASB.
The AUASB also plans to provide input into the development of professional standards, including commenting on exposure drafts issued by the Accounting Professional and Ethical Standards Board (APESB) and the activities of the Audit Quality Review Board (AQRB) in relation to ethics and quality control.