Document ID: chunk:federal_register_of_legislation:F2025L00106:body:0:p11
Version: federal_register_of_legislation:F2025L00106
Segment Type: other
Provision Reference: 
Character Range: 31183–34444

The proper application of the requirements in the standard is expected to provide a sufficient basis for the practitioner's achievement of the objective(s).

Definitions (Ref: Para. 12(d))

     1.          Definitions contained within AUASB Standards, and/or contained within the AUASB Glossary (as issued from time to time), provide a description of the meanings attributed to certain terms for the purposes of the AUASB Standards.  These definitions are provided for consistent application and interpretation of standards, and are not intended to override definitions that may be established for other purposes, whether in law, regulation or otherwise.  The AUASB Glossary contains a complete listing of terms defined in AUASB Standards.

Requirements (Ref: Para. 12(e))

     1.          Paragraphs that impose obligations on the assurance practitioner are contained in a separate "Requirements" section of each standard and expressed using the word "shall". Requirements are designed to enable the assurance practitioner to meet the stated objective(s) of an AUASB Standard. In certain circumstances, requirements are legally binding and enforceable.

     2.          The assurance practitioner applies the requirements in the context of the other material included in the AUASB Standard (for example, introductory material, definitions and application and other explanatory material).  The entire text of an AUASB Standard, therefore, is relevant to an understanding of the objectives stated in an AUASB Standard and the proper application of the requirements of the standard. Although the assurance practitioner has a responsibility to consider the entire text of the standard in carrying out the engagement, application and explanatory material does not in itself impose a requirement.

     3.          For information on how the requirements in AUASB Standards are to be applied for:

          1.                 audits and reviews of historical financial reports and information – see ASA 200;[31]

          2.                 assurance engagements other than audits or reviews of historical financial information – see ASAE 3000 and ASSA 5000.[32]

    These standards also include requirements and explanatory material on the limited circumstances where the assurance practitioner may judge it necessary to depart from a relevant requirement in a standard.

     1.          The assurance practitioner is required to comply with all AUASB Standards relevant to an engagement. Furthermore, AUASB Standards require compliance with each requirement of a relevant standard unless, in the circumstances of the engagement, the requirement is not relevant because it is conditional and the condition does not exist.[33]

     2.          When, in the circumstances of an engagement:

             1.                 an entire AUASB Standard is not relevant; or

             1.                 a requirement is not relevant because it is conditional and the condition does not exist,

    there is no requirement to document the reason(s) why the requirement is not relevant.

     1.          However, for audits or reviews conducted in accordance with the Act, where in rare and exceptional circumstances, factors outside the assurance practitioner's