Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p28
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 28/30)
Character Range: 91366–94530

auditor will not be able to obtain sufficient appropriate audit evidence and is required by Australian Auditing Standards to determine the effect on the auditor's report or on the auditor's ability to complete the engagement.

Complying with Relevant Requirements

Relevant Requirements (Ref: Para. 22)

A79.         In some cases, an Auditing Standard (and therefore all of its requirements) may not be relevant in the circumstances.  For example, if an entity does not have an internal audit function, nothing in ASA 610[30] is relevant.

A80.         Within a relevant Auditing Standard, there may be conditional requirements.  Such a requirement is relevant when the circumstances envisioned in the requirement apply and the condition exists.  In general, the conditionality of a requirement will either be explicit or implicit, for example:

           * The requirement to modify the auditor's opinion if there is limitation of scope[31] represents an explicit conditional requirement.

           * The requirement to communicate significant deficiencies in internal control identified during the audit to those charged with governance,[32] which depends on the existence of such identified significant deficiencies; and the requirement to obtain sufficient appropriate audit evidence regarding the presentation and disclosure of segment information in accordance with the applicable financial reporting framework,[33] which depends on that framework requiring or permitting such disclosure, represent implicit conditional requirements.

    In some cases, a requirement may be expressed as being conditional on applicable law or regulation.  For example, the auditor may be required to withdraw from the audit engagement, where withdrawal is possible under applicable law or regulation, or the auditor may be required to do something, unless prohibited by law or regulation.  Depending on the jurisdiction, the legal or regulatory permission or prohibition may be explicit or implicit.

Inability to Comply with a Requirement (Ref: Para. Aus 23.1)

A81.         ASA 230 establishes documentation requirements in those rare and exceptional circumstances where the auditor is unable to comply with a relevant requirement.[34]  Australian Auditing Standards do not call for compliance with a requirement that is not relevant in the circumstances of the audit.

Aus A81.1 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, compliance with Australian Auditing Standards can still be represented provided the auditor has complied with the requirements of paragraph Aus 23.1.

Failure to Achieve an Objective (Ref: Para. 24)

A82.         Whether an objective has been achieved is a matter for the auditor's professional judgement.  That judgement takes account of the results of audit procedures performed in complying with the requirements of the Australian Auditing Standards, and the auditor's evaluation of whether sufficient appropriate audit evidence has been obtained and whether more needs to be done in the particular