AUSTRALIAN NATIONAL AUDIT OFFICE AUDITING STANDARDS
1. As required by section 24 of the Auditor-General Act 1997 (the Act), I hereby set auditing standards that are to be complied with by persons performing any of the following functions:
(a) an audit or review referred to in Division 1 (Annual financial statement audits); Division 1A (Annual performance statement audits); Division 2 (Performance audits) or Division 2A (Assurance reviews) of Part 4 of the Act;
(b) an audit under Division 2 of Part 7 of the Act (Audit of the Australian National Audit Office); and
(c) an audit under section 49 of the Public Governance, Performance and Accountability Act 2013 (audit of the annual consolidated financial statements of the Australian Government).
2. The Australian National Audit Office (ANAO) Auditing Standards comprise the standards referred to below, to the extent that they are not inconsistent with requirements of the Act or other relevant legislation, and to the extent that they apply to the relevant audit or review activity:
(a) Standards made by the Australian Auditing and Assurance Standards Board (AUASB) pursuant to sub-section 227B(1)(a) of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, that are current from time to time.
(b) The standards listed in the following table that are issued by the AUASB pursuant to sub-section 227B(1)(b) of the Australian Securities and Investments Commission Act 2001.
Standard Number | Title | Issue Date |
ASA 805 | Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement | July 2016 |
ASA 810 | Engagements to Report on Summary Financial Statements | September 2016 |
ASRE 2400 | Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity | March 2013 |
ASRE 2405 | Review of Historical Financial Information Other than a Financial Report | August 2008 |
ASAE 3000 | Assurance Engagements Other than Audits or Reviews of Historical Financial Information | June 2014 |
ASAE 3100 | Compliance Engagements | February 2017 |
ASAE 3150 | Assurance Engagements on Controls | January 2015 |
ASAE 3402 | Assurance Reports on Controls at a Service Organisation | June 2014 |
ASAE 3410 | Assurance Engagements on Greenhouse Gas Statements | June 2014 |
ASAE 3420 | Assurance Engagements to Report on the Compilation of Pro Forma Historical Financial Information included in a Prospectus or other Document | June 2014 |
ASAE 3450 | Assurance Engagements involving Corporate Fundraisings and/or Prospective Financial Information | November 2012 |
ASAE 3500 | Performance Engagements | October 2008 |
ASAE 3610 / AWAS 2 | Assurance Engagements on General Purpose Water Accounting Reports | February 2014 |
ASRS 4400 | Agreed-Upon Procedures Engagements to Report Actual Findings | July 2013 |
ASRS 4450 | Comfort Letter Engagements | May 2012 |
3. The ANAO Auditing Standards relating to the conduct of financial statement and performance audits are consistent with ISSAI 200 Fundamental Principles of Financial Auditing and ISSAI 300 Fundamental Principles of Performance Auditing respectively, issued by the International Organisation of Supreme Audit Institutions (issued 2013).
4. These ANAO Auditing Standards revoke all previous auditing standards set under section 24 of the Act.
Grant Hehir
Auditor-General
9 March 2017
Overview
The Australian National Audit Office Auditing Standards, established pursuant to section 24 of the Auditor-General Act 1997, are designed to ensure consistency and adherence to professional standards in the performance of audits and reviews by the Australian National Audit Office (ANAO). The enactment of these standards by the Auditor-General is aimed at maintaining the integrity and reliability of financial and performance audits across various governmental and statutory bodies, thereby upholding public accountability. The ANAO Auditing Standards align with the Australian Auditing and Assurance Standards Board's standards and the fundamental principles set by the International Organisation of Supreme Audit Institutions, ensuring that audits are conducted in a manner that is both effective and internationally recognised. These standards replace all previously set auditing standards under the Act, providing a comprehensive framework for future audits.
Scope and Application
The Australian National Audit Office Auditing Standards, as set under section 24 of the Auditor-General Act 1997, apply to any person performing specific audit or review functions within the Commonwealth of Australia. These functions include annual financial statement audits, annual performance statement audits, performance audits, assurance reviews, audits of the Australian National Audit Office, and audits of the annual consolidated financial statements of the Australian Government under the Public Governance, Performance and Accountability Act 2013. The standards are designed to ensure that these audits and reviews are carried out in a manner consistent with the requirements of the Auditor-General Act and other relevant legislation. The standards are comprised of those made by the Australian Auditing and Assurance Standards Board, as well as a list of specific standards issued by the AUASB. These standards are in place to ensure that the audit and review activities meet the fundamental principles of financial auditing and performance auditing set by the International Organisation of Supreme Audit Institutions. The application of these standards is national in scope, affecting all persons within the jurisdiction of the Commonwealth who engage in the specified audit and review activities.
Key Provisions
Section 24 of the Auditor-General Act 1997 mandates the setting of auditing standards for various audit and review functions, as stated in the Gazette (C2017G00278). These functions include annual financial statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office, as well as the audit of the annual consolidated financial statements of the Australian Government (section 1(a)-(c)). The ANAO Auditing Standards are established to comply with these requirements and incorporate Australian Auditing and Assurance Standards Board (AUASB) standards that are not inconsistent with the Act or other relevant legislation (section 2). The Act also ensures that these auditing standards are consistent with international standards issued by the International Organisation of Supreme Audit Institutions (section 3). All previous auditing standards are revoked by these new standards (section 4).
Under this Act, parties or entities involved in the specified audits and reviews must adhere to the ANAO Auditing Standards. This includes ensuring that their audit practices align with both the Australian Auditing and Assurance Standards Board standards and the fundamental principles of financial and performance auditing issued by the International Organisation of Supreme Audit Institutions. Auditors are required to conduct their audits in a manner that is consistent with these standards, ensuring that the audits are thorough, accurate, and comply with all relevant legislative requirements.
Failure to comply with the ANAO Auditing Standards can result in various consequences. While the Act does not specify detailed penalties or consequences for non-compliance within its text, it is understood that breaches of these standards could lead to legal ramifications. These may include disciplinary actions against the auditors, financial penalties, or other sanctions as deemed appropriate by the relevant authorities. The precise nature and extent of these consequences would be determined by the Auditor-General and relevant legislative frameworks.