Document ID: chunk:federal_register_of_legislation:F2023C01120:reg:3:p9
Version: federal_register_of_legislation:F2023C01120
Segment Type: reg
Provision Reference: reg 3 (pt 9/12)
Character Range: 34164–37230

may discuss significant matters may include other personnel within the entity, and external parties, such as persons providing professional advice to the entity.

Documentation of How Inconsistencies have been Addressed (Ref: Para. 11)

A15.         The requirement to document how the auditor addressed inconsistencies in information does not imply that the auditor needs to retain documentation that is incorrect or superseded.

Considerations Specific to Smaller Entities (Ref: Para. 8)

A16.         The audit documentation for the audit of a smaller entity is generally less extensive than that for the audit of a larger entity.  Further, in the case of an audit where the engagement partner performs all the audit work, the documentation will not include matters that might have to be documented solely to inform or instruct members of an engagement team, or to provide evidence of review by other members of the team (for example, there will be no matters to document relating to team discussions or supervision).  Nevertheless, the engagement partner complies with the overriding requirement in paragraph 8 to prepare audit documentation that can be understood by an experienced auditor, as the audit documentation may be subject to review by external parties for regulatory or other purposes.

A17.         When preparing audit documentation, the auditor of a smaller entity may also find it helpful and efficient to record various aspects of the audit together in a single document, with cross‑references to supporting working papers as appropriate.  Examples of matters that may be documented together in the audit of a smaller entity include the understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, the overall audit strategy and audit plan, materiality determined in accordance with ASA 320,[9] assessed risks, significant matters noted during the audit, and conclusions reached.

Documentation of Inability to Comply with Relevant Requirements (Ref: Para. Aus 12.1)

A18.         The requirements of the Australian Auditing Standards are designed to enable the auditor to achieve the objectives specified in the Australian Auditing Standards, and thereby the overall objectives of the auditor.  Accordingly, other than in rare and exceptional circumstances, the Australian Auditing Standards call for compliance with each requirement that is relevant in the circumstances of the audit.

Aus A18.1 ASA 200 contains a requirement regarding the situation, where, in rare and exceptional circumstances, factors outside the auditor's control prevent the auditor from complying with an essential procedure contained within a relevant requirement.

A19.         The documentation requirement applies only to requirements that are relevant in the circumstances.  A requirement is not relevant[10] only in the cases where:

(a)                The entire Auditing Standard is not relevant (for example, if an entity does not have an internal audit function, nothing in ASA