Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p23
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 23/30)
Character Range: 77260–80331

the financial report may not be detected, even though the audit is properly planned and performed in accordance with Australian Auditing Standards.  Accordingly, the subsequent discovery of a material misstatement of the financial report resulting from fraud or error does not by itself indicate a failure to conduct an audit in accordance with Australian Auditing Standards.  However, the inherent limitations of an audit are not a justification for the auditor to be satisfied with lessthanpersuasive audit evidence.  Whether the auditor has performed an audit in accordance with Australian Auditing Standards is determined by the audit procedures performed in the circumstances, the sufficiency and appropriateness of the audit evidence obtained as a result thereof and the suitability of the auditor's report based on an evaluation of that evidence in light of the overall objectives of the auditor.

Conduct of an Audit in Accordance with Australian Auditing Standards

Nature of the Australian Auditing Standards (Ref: Para. 18)

A58.         The Australian Auditing Standards, taken together, provide the standards for the auditor's work in fulfilling the overall objectives of the auditor.  The Australian Auditing Standards deal with the general responsibilities of the auditor, as well as the auditor's further considerations relevant to the application of those responsibilities to specific topics.

A59.         The scope, effective date and any specific limitation of the applicability of a specific Auditing Standard is made clear in the Auditing Standard.  Unless otherwise stated in the Auditing Standard, the auditor is permitted to apply an Auditing Standard before the effective date specified therein.

A60.         In performing an audit, the auditor may be required to comply with legal or regulatory requirements in addition to the Australian Auditing Standards.  The Australian Auditing Standards do not override law or regulation that governs an audit of a financial report.  In the event that such law or regulation differs from the Australian Auditing Standards, an audit conducted only in accordance with law or regulation will not automatically comply with Australian Auditing Standards.

A61.         The auditor may also conduct the audit in accordance with both Australian Auditing Standards and auditing standards of a specific jurisdiction or country.  In such cases, in addition to complying with each of the Australian Auditing Standards relevant to the audit, it may be necessary for the auditor to perform additional audit procedures in order to comply with the relevant standards of that jurisdiction or country.

Considerations Specific to Audits in the Public Sector

A62.         The Australian Auditing Standards are relevant to engagements in the public sector.  The public sector auditor's responsibilities, however, may be affected by the audit mandate, or by obligations on public sector entities arising from law, regulation or other authority (such as ministerial directives, government policy requirements, or resolutions