Document ID: chunk:federal_register_of_legislation:F2025L00106:body:0:p13
Version: federal_register_of_legislation:F2025L00106
Segment Type: other
Provision Reference: 
Character Range: 37438–40683

of an AUASB Standard.  Introductory material may include, as needed, such matters as explanation of the:

           * purpose and scope of the Standard, including how the Standard relates to other AUASB Standards;

           * subject matter of the Standard; and

           * respective responsibilities of the assurance practitioner and others in relation to the subject matter of the Standard.

Application and Other Explanatory Material (Ref: Para. 13(d))

     1.          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.

     2.          Where necessary, the application and other explanatory material provides further explanation of the requirements and guidance for carrying the requirements out.  In particular, it may:

           * explain more precisely what a requirement means or is intended to cover; and

           * include examples that illustrate how the requirements might be applied and/or provide examples of procedures that may be appropriate in the circumstances.

    While such guidance does not in itself impose a requirement, it is relevant to the proper application of the requirements.  The application and other explanatory material may also provide background information on matters addressed in an AUASB Standard.

     1.          Where appropriate, additional considerations specific to public sector and smaller entity engagements are included within the "Application and Other Explanatory Material" section of the standard.  These additional considerations assist in the application of the requirements of the standards in conducting such engagements. However, they do not limit or reduce the responsibility of the assurance practitioner to apply and comply with the requirements of AUASB Standards.

Appendices (Ref: Para. 13(e))

     1.          Appendices form part of the application and other explanatory material.  The purpose and intended use of an appendix are explained in the body of the related standard or within the title and introduction of the appendix itself.

AUASB Drafting Conventions (Ref: Para. 12-13)

     1.          The following drafting principles and conventions apply to AUASB Standards:

          1.                 The requirements of each AUASB Standard are contained in a separate "Requirements" section of a standard. The requirements of an AUASB Standard are expressed using the word "shall" to denote the obligations an assurance practitioner is required to comply with in achieving the objective or objectives stated in the standard.

          2.                 Paragraphs containing application and other explanatory material are designated with the letter "A".

          3.                 The present tense of verbs is used in explanatory material when it is the best form of expression. Use of the present tense does not create or imply requirements. The present tense is used in examples and other explanatory material that relate to professional judgement and professional scepticism.

          4.                 Requirements that exist in another AUASB Standard are anchored back to the