Auditing Standard ASA 2024-1 Amendments to Australian Auditing Standards

Administered by Department of the Treasury

Legislation au F2024L01716 In force Legislative Instrument

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ASA 2024-1

(December 2024)

Explanatory Statement

ASA 2024-1 Amendments to Australian Auditing Standards

Issued by the Auditing and Assurance Standards Board

Obtaining a Copy of this Explanatory Statement

This Explanatory Statement is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au

Contact Details

Auditing and Assurance Standards Board

Phone: (03) 8080 7400

E-mail: enquiries@auasb.gov.au

Postal Address:

PO Box 204, Collins Street West

Melbourne   Victoria   8007

AUSTRALIA

 


Reasons for Issuing Auditing Standard ASA 2024-1

The AUASB issues Auditing Standard ASA 2024-1 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.

The AUASB is a non-corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act).  Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation.  These Auditing Standards are legislative instruments under the Legislation Act 2003.

Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.

Purpose of Auditing Standard ASA 2024-1 Amendments to Australian Auditing Standards

The purpose of the Auditing Standard is to make amendments to the requirements and application and other explanatory material and appendices of the following Auditing Standard:

ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022)

Main Features

This Auditing Standard makes amendments to ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022). The amendments represent editorial corrections to revise minor inaccuracies in ASA 600.  

Operative Date

ASA 2024-1 Amendments to Australian Auditing Standards is operative for financial reporting periods commencing on or after 1 January 2025.

Process of making Australian Auditing Standards

The AUASB’s Strategic Direction, inter alia, provides that the AUASB develop Australian Auditing Standards that:

  •                  have a clear public interest focus and are of the highest quality;
  • use the International Standards on Auditing (ISAs) of the International Auditing and Assurance Standards Board (IAASB) as the underlying standards;
  •                  conform with the Australian regulatory environment; and
  •                  are capable of enforcement.
Consultation Process prior to issuing the Auditing Standard

It is the view of the AUASB that ASA 2024-1 does not require public exposure as the amendments are sufficiently narrow in scope as well as editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.

Impact Analysis

A Preliminary Assessment form has been prepared in connection with the preparation of ASA 2024-1 Amendments to Australian Auditing Standards and lodged with the Office of Impact Analysis (OIA).  The OIA advised that an Impact Analysis (IA) is not required in relation to this standard.

Exemption from Sunsetting

Auditing Standards promulgated by the AUASB that are legislative instruments are exempt from the sunsetting provisions of the Legislation Act 2003 through section 12 of the Legislation (Exemption and Other Matters) Regulation 2015 (Item 18(a)).

The AUASB’s Standards incorporate Standards set by the International Auditing and Assurance Standards Board.  The AUASB’s Standards are exempt from sunsetting because a more stringent review process than sunsetting applies to the Standards.  This review process ensures Australia’s Auditing Standards regime remains consistent with international standards.  Typically, the AUASB Standards are revised at least once within a ten-year period, with most of the Standards subject to revisions much more frequently than that.  Each revision follows the stringent review process (which includes the opportunity for public comment) in order to remain consistent with international Standards.  It is very unlikely that any AUASB Standard would not have been amended (or else considered for amendment) within a ten-year period through these review processes.  Therefore, if it applied, a ten-year sunsetting regime would have very limited practical application to AUASB Standards.  Parliamentary oversight is retained whenever a Standard is replaced or amended since the Standards are disallowable instruments and subject to the normal tabling and scrutiny process as required by the Legislation Act 2003.

 

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Legislative Instrument: Auditing Standard ASA 2024-1 Amendments to Australian Auditing Standards

This Legislative Instrument 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.

Overview of the Legislative Instrument

Background

The AUASB is an independent statutory committee of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act).  Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation.  These Auditing Standards are legislative instruments under the Legislative Instruments Act 2003.

Purpose of Auditing Standard ASA 2024-1

The purpose of ASA 2024-1 is to make amendments to the requirements and application and other explanatory material and appendices of the following Auditing Standard:

ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022)

Main Features

ASA 2024-1 makes amendments to ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022). The amendments represent editorial corrections to revise minor inaccuracies in ASA 600.

Human Rights Implications

Australian Auditing Standards are issued by the AUASB in furtherance of the objective of facilitating the Australian economy. The standards do not diminish or limit any of the applicable human rights or freedoms, and thus do not raise any human rights issues.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

Overview

Auditing Standard ASA 2024-1 Amendments to Australian Auditing Standards was issued by the Auditing and Assurance Standards Board (AUASB) pursuant to the requirements of the legislative provisions under the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. The primary purpose of this Auditing Standard is to amend the requirements and explanatory material of the existing Auditing Standard ASA 600, which addresses special considerations in audits of group financial reports, including the work of component auditors. These amendments serve to correct minor inaccuracies and editorial errors found in ASA 600. The AUASB, guided by the Financial Reporting Council, aims to develop high-quality auditing standards with a clear public interest focus, aligned with international standards and capable of enforcement. This Auditing Standard will be effective for financial reporting periods commencing on or after 1 January 2025.

Scope and Application

The Auditing Standard ASA 2024-1, Amendments to Australian Auditing Standards, applies to auditors, audit firms, and entities preparing group financial reports in Australia. It specifically targets the amendments to ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022), which entails making editorial corrections to address minor inaccuracies in the existing standard. This standard is applicable across the Commonwealth and is aimed at enhancing the quality and accuracy of auditing practices in Australia, thereby ensuring that financial reporting remains transparent and reliable. The amendments do not introduce new requirements or alter the fundamental auditing processes but focus on correcting typographical and grammatical errors to improve clarity and consistency. The scope of this standard extends to all entities that are subject to group audits under the Corporations Act 2001, and it will be operative for financial reporting periods commencing on or after 1 January 2025. This Auditing Standard is exempt from the sunsetting provisions under the Legislation Act 2003, ensuring its continued relevance and application without periodic review unless subject to a more stringent review process as mandated by the AUASB’s Standards.

Key Provisions

The Auditing Standard ASA 2024-1, issued by the Auditing and Assurance Standards Board (AUASB), primarily amends ASA 600 Special Considerations—Audits of a Group Financial Report (Including the Work of Component Auditors) (Issued May 2022). The amendments (sections 1-4) address minor editorial corrections such as misspellings, numbering, and grammatical errors, ensuring the standard remains accurate and comprehensible. These changes are intended to enhance the clarity and precision of the auditing requirements and guidelines outlined in ASA 600. The Auditing Standard ASA 2024-1 imposes specific obligations on auditors and auditing firms engaged in group financial report audits. It requires these entities to adhere to the corrected and amended provisions of ASA 600, ensuring that the audits are conducted with due diligence and in compliance with the updated standards. This includes correctly applying the corrected guidance on the work of component auditors, risk assessment, and the overall audit approach for group financial reports. The amendments necessitate that auditors and firms update their practices and training materials to reflect these changes. In terms of legal consequences, the Auditing Standard ASA 2024-1 itself does not introduce new offences or penalties. However, failure to comply with the amended provisions of ASA 600 could potentially lead to regulatory scrutiny or penalties under the Corporations Act 2001, particularly if non-compliance results in misleading or unreliable financial reports. Auditors and firms that do not adhere to the updated auditing standards may face consequences such as disciplinary action, fines, or other regulatory penalties imposed by the Australian Securities and Investments Commission (ASIC). These potential consequences underscore the importance of adhering to the corrected provisions outlined in ASA 2024-1.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.