Document ID: chunk:federal_register_of_legislation:F2023C01118:body:0:p3
Version: federal_register_of_legislation:F2023C01118
Segment Type: other
Provision Reference: 
Character Range: 8149–11424

101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.

Conformity with International Standards on Quality Management

This Auditing Standard conforms with International Standard on Quality Management ISQM 1 Quality Management for Firms that Performs Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).

Paragraphs that have been added to, or amended from this Auditing Standard (and do not appear / appear differently in/from the text of the equivalent ISQM 1) are identified with the prefix "Aus".

The following introductory paragraphs and definitions are additional to or have been amended from ISQM 1:

Paragraph                  Summary of Change
Aus 4.1                    Replaces ISQM 1 introductory paragraph 4, to introduce ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.
Aus 4.2                    Additional to ISQM 1 to serve as a reminder that it is the responsibility of the firm to ensure compliance with all relevant legal, regulatory or professional obligations.
Aus 10.1                   Replaces ISQM 1 paragraph 10 scalability, as the example used in ISQM 1 references Compilation Engagements.  The AUASB does not issue a Compilation Engagement standard.
Aus 16.1-Aus16.2 and 16.5  Additional to ISQM 1, to include definitions of 'Assurance engagement', 'Assurance practitioner' and 'Other financial information', within the legislative instrument of ASQM 1.
Aus 16.3                   Additional to ISQM 1 to include definition of 'Date of report', to represent current Australian principles and practices of dating reports.
Aus 16.4                   Replaces ISQM 1 paragraph 16(f) definition of 'Engagement team', to remove the reference to direct assistance of internal audit which is prohibited in Australia, consistent with ASA 610 Using the Work of Internal Auditors.
Aus 16.5                   Additional to ISQM 1, to include the definition of 'Other financial information'.  Consistent with ASA 100 Preamble to AUASB Standards, although Auditing Standards are written mainly in the context of an audit of a financial report, they apply also, as appropriate, to the audit of other financial information.
Aus 16.6                   Replaces ISQM 1 paragraph 16(m) definition of 'Partner', which references the term 'professional services engagements'.  This term is not defined within Australia and has been replaced with the words audit, review, other assurance engagement or related services engagement.
Aus 16.7                   Replaces ISQM paragraph 16(p) definition of 'Professional standards'.  The AUASB Preface defines the term AUASB Standards.
Aus 16.8                   Replaces ISQM 1 paragraph 16(t) definition of 'Relevant ethical requirements'. Relevant ethical requirements are defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.

The following application and other explanatory material is additional to or amended from