ASA 2013-3 - Amendments to Australian Auditing Standards - July 2013

Overview

The Auditing Standard ASA 2013-3 Amendments to Australian Auditing Standards, enacted in 2013, was introduced by the Auditing and Assurance Standards Board (AUASB), an independent statutory committee established under section 227A of the Australian Securities and Investments Commission Act 2001. The primary purpose of this legislation was to make editorial amendments to several existing Australian Auditing Standards, including ASA 102, ASA 502, ASA 570, ASA 580, ASA 700, ASA 800, ASRE 2410, and ASRE 2415. These amendments were aimed at maintaining the quality and consistency of the presentation of the standards without altering their requirements or practical application. The amendments are purely editorial, focusing on correcting grammatical errors, cross-reference inaccuracies, and inconsistent terminology. As such, they do not impact the conduct of audits or reviews under the standards, nor do they impose any additional obligations on auditors.

Scope and Application

The Auditing Standard ASA 2013-3, issued by the Auditing and Assurance Standards Board (AUASB), pertains to amendments to various Australian Auditing Standards. These amendments concern ethical compliance, audit evidence for litigation, going concern assessments, written representations, opinion formation and reporting, and special considerations for audits prepared under special purpose frameworks, as well as reviews of financial reports by independent auditors and company limited by guarantees. This legislation applies to auditors, accounting professionals, and entities undergoing audits, ensuring adherence to high-quality auditing standards that align with the Australian regulatory environment. The amendments are legislative instruments under the Legislative Instruments Act 2003 and are applicable nationally as they pertain to the auditing practices in Australia. There are no exclusions, exemptions, or thresholds specified in this amendment; however, the amendments themselves are editorial and do not alter the substantive requirements or practical application of the existing standards. Consequently, practitioners need not adjust their audit practices as a result of these changes.

Key Provisions

The Auditing and Assurance Standards Board (AUASB) has introduced Auditing Standard ASA 2013-3 Amendments to Australian Auditing Standards, which amends various auditing standards to correct editorial errors. The amendments cover ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements, ASA 502 Audit Evidence - Specific Considerations for Litigation and Claims, ASA 570 Going Concern, ASA 580 Written Representations, ASA 700 Forming an Opinion and Reporting on a Financial Report, ASA 800 Special Considerations - Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks, ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, and ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation. The purpose of ASA 2013-3 is to ensure the quality and consistency of the presentation of the Australian Auditing Standards through editorial changes such as correcting grammatical errors, cross-references, and terminology. These amendments do not alter the requirements of the Auditing Standards, meaning they do not impact the practical application of performing audits or reviews under these standards. As such, auditors are not required to amend their work efforts due to these changes. The AUASB, established under section 227A of the Australian Securities and Investments Commission Act 2001, has the authority to create Auditing Standards under section 336 of the Corporations Act 2001. These Auditing Standards serve as legislative instruments under the Legislative Instruments Act 2003. The AUASB operates under the Strategic Direction given by the Financial Reporting Council (FRC), which requires the development of auditing standards with a clear public interest focus, of the highest quality, and in line with the Australian regulatory environment. The AUASB consulted publicly in the development of ASA 2013-3, releasing Exposure Draft ED 01/13 Proposed Auditing Standard ASA 2013-3 Amendments to Australian Auditing Standards on 28 May 2013 for a 30-day comment period. Submissions were considered during the finalisation of the Auditing Standard. There are no offences, penalties, or civil/criminal consequences for breach associated with the amendments in ASA 2013-3, as these changes are editorial and do not alter the requirements of the Auditing Standards. Auditors are not required to take any specific actions in response to these amendments. However, it is essential for auditors to stay updated with the latest amendments to maintain compliance with the Auditing Standards and ensure the quality and consistency of their work. The AUASB's commitment to human rights is demonstrated through the preparation of a Statement of Compatibility with Human Rights, in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. The Legislative Instrument, Auditing Standard ASA 2013-3 Amendments to Australian Auditing Standards, is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, as the inconsequential nature of the editorial amendments does not engage any applicable rights or freedoms.