Document ID: chunk:federal_register_of_legislation:F2025L00106:body:0:p7
Version: federal_register_of_legislation:F2025L00106
Segment Type: other
Provision Reference: 
Character Range: 19249–22517

may also be issued or used for other purposes.  Where auditing and assurance standards are used for purposes other than complying with the Act, compliance with those standards may not be required as a matter of law.  However, there are circumstances in which compliance is required by other legislation, regulatory or contractual arrangements.

     1.              Standards issued by the AUASB under s336 of the Act (other than the firm level quality management standards) are legally enforceable by the Australian Securities and Investments Commission (ASIC) for the conduct of audits or reviews of financial reports and sustainability reports required by the Act.  ASIC conducts regular inspection programmes as an integral part of its enforcement responsibilities.

     2.              Through the standards issued by the Accounting Professional & Ethical Standards Board (APESB), members of the Australian Professional Accounting Bodies are compelled to comply with the requirements of AUASB Standards.[23]

     3.          Member compliance is subject to the inspection programmes of the Professional Accounting Bodies, which are also responsible for member disciplinary action.

Type of Entity

     1.          AUASB Standards are:

             1.                 neutral with respect to the sector and size of the entity subject to the engagement; and

             2.                 intended to be applied, as appropriate, to all audit, review, assurance and related service engagements conducted by an external firm in both the public and private sectors.

     2.          The AUASB generally does not set industry or sector specific standards but may from time to time produce industry or sector specific guidance materials. Where necessary, entity sector and size considerations are included, and identified, in the body of the relevant AUASB Standard.

     3.          AUASB Standards do not take into account any specific circumstances affecting entities that are subject to the engagement.

Public Sector Engagements

     1.          AUASB Standards are relevant to engagements in the public sector.  When appropriate, additional considerations specific to public sector entities are included within the "Application and Other Explanatory Material" section of each standard.

     2.          The responsibilities of public sector assurance practitioners may be affected by the mandate applying to the engagement, or by obligations on public sector entities arising from law, regulation or other authority (such as ministerial directives, government policy requirements, or resolutions of the legislature), which may encompass a broader scope than an engagement in accordance with the AUASB Standards.  These additional responsibilities are not dealt with in the AUASB Standards. They may be dealt with in guidance developed by government audit agencies[24].

Applying AUASB Standards

Professional Judgement

     1.          Professional judgement is essential to the proper conduct of engagements that fall within the scope of AUASB Standards.  This is because interpretation of relevant ethical requirements and relevant AUASB Standards and the informed decisions required throughout the engagement cannot be made without the application of