Document ID: chunk:federal_register_of_legislation:F2011C00604:reg:3:p2
Version: federal_register_of_legislation:F2011C00604
Segment Type: reg
Provision Reference: reg 3 (pt 2/3)
Character Range: 6269–9675

January 2010; and for firms required to establish systems of quality control by 1 January 2010.

Definitions

8.                   For purposes of the Australian Auditing Standards, the following terms have the meanings attributed below:

         (a)                Auditing Standards means auditing standards made under section 336 of the Corporations Act 2001 (the "Act"), and include:

             (i) ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and

             (ii) ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.

         (b) Australian Auditing Standards means the suite of auditing standards issued by the AUASB, comprising:

               * Auditing Standards made under section 336 of the Corporations Act 2001;

               * ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and

               * ASA 810 Engagements to Report on Summary Financial Statements.

Requirements

Authority of the Paragraphs in Australian Auditing Standards

9.                   The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards.  The mandatory components are included in each Auditing Standard under the headings listed below:

         (i) Application (paragraph Aus 0.1).

         (ii) Operative Date.

         (iii) Objective(s).

         (iv) Definition(s).

         (v) Requirements.

10.                The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components.  The explanatory material is included in each Auditing Standard under the headings listed below:

         (i) Application (paragraph Aus 0.2).

         (ii) Introduction.

         (iii) Application and Other Explanatory Material.

         (iv) Conformity with International Standards on Auditing.

         (v) Appendices.

    Explanatory material does not create or extend mandatory components. (Ref: Para. A1)

Engagements under the Corporations Act 2001

11.                The "Application" paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:

         (a)                an audit or a review conducted under Part 2M.3 of the Act; and

         (b)                an audit conducted under Part 7.8 of the Act.

Compliance with Requirements

12.                When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)

* * *

Application and Other Explanatory Material

Authority of the Paragraphs in Australian Auditing Standards
(Ref: Para. 10)

A1.              Included within the requirements section of a standard are references to paragraphs in the "Application and Other Explanatory Material" section of the standard.  Such references do not extend or create requirements.

Compliance with Requirements (Ref: Para. 12)