Document ID: chunk:federal_register_of_legislation:F2023C01125:body:0:p6
Version: federal_register_of_legislation:F2023C01125
Segment Type: other
Provision Reference: 
Character Range: 15242–18670

business, or to avoid material penalties (e.g., compliance with the terms of an operating license, compliance with regulatory solvency requirements, or compliance with environmental regulations); non‑compliance with such laws and regulations may therefore have a material effect on the financial report (see paragraph 15) (Ref: Para. A13).

    7.                   In this Auditing Standard, differing requirements are specified for each of the above categories of laws and regulations.  For the category referred to in paragraph 6(a), the auditor's responsibility is to obtain sufficient appropriate audit evidence regarding compliance with the provisions of those laws and regulations.  For the category referred to in paragraph 6(b), the auditor's responsibility is limited to undertaking specified audit procedures to help identify non‑compliance with those laws and regulations that may have a material effect on the financial report.

    8.                   The auditor is required by this Auditing Standard to remain alert to the possibility that other audit procedures applied for the purpose of forming an opinion on the financial report may bring instances of non‑compliance to the auditor's attention.  Maintaining professional scepticism throughout the audit, as required by ASA 200,[3] is important in this context, given the extent of laws and regulations that affect the entity.

    9.                   The auditor may have additional responsibilities under law, regulation or relevant ethical requirements regarding an entity's non‑compliance with laws and regulations, which may differ from or go beyond this Auditing Standard, such as: (Ref: Para. A8)

         (a)                Responding to identified or suspected non‑compliance with laws and regulations, including requirements in relation to specific communications with management and those charged with governance, assessing the appropriateness of their response to non‑compliance and determining whether further action is needed;

         (b)                Communicating identified or suspected non‑compliance with laws and regulations to other auditors (e.g., in an audit of a group financial report); and

         (c)                Documentation requirements regarding identified or suspected non‑compliance with laws and regulations.

    Complying with any additional responsibilities may provide further information that is relevant to the auditor's work in accordance with this and other Australian Auditing Standards (e.g., regarding the integrity of management or, where appropriate, those charged with governance).

Effective Date

    10.               [Deleted by the AUASB.  Refer Aus 0.3]

Objectives

    11.               The objectives of the auditor are:

         (a)                To obtain sufficient appropriate audit evidence regarding compliance with the provisions of those laws and regulations generally recognised to have a direct effect on the determination of material amounts and disclosures in the financial report;

         (b)                To perform specified audit procedures to help identify instances of non‑compliance with other laws and regulations that may have a material effect on the financial report; and

         (c)                To respond appropriately to identified or suspected non‑compliance with laws and regulations identified during the audit.

Definition

    12.               For