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; and
(b) an audit under Division 2 of Part 7 of the Act (Audit of the Australian National Audit Office).
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 | October 2009 |
ASA 810 | Engagements to Report on Summary Financial Statements | October 2009 |
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 | September 2008 |
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 4450 | Comfort Letter Engagements | May 2012 |
(c ) AUS 810 Special Purpose Reports on the Effectiveness of Control Procedures (issued July 2002), issued by the former Australian Accounting Research Foundation on behalf of CPA Australia and The Institute of Chartered Accountants in Australia; and
(d) for Assurance Reviews undertaken under Division 2A of Part 4 of the Act that are designated by the Auditor-General as Limited Scope Assurance Reviews, the requirements in the Planning and Performing, Obtaining Evidence and Documentation sections of ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The reporting arrangements for Limited Scope Assurance Reviews, including arrangements for reporting to the Parliament, will be as determined by the Auditor-General.
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.
Ian McPhee
Auditor-General
1 July 2014
Overview
The Australian National Audit Office Auditing Standards, as established under section 24 of the Auditor-General Act 1997, aim to standardise the auditing practices for financial statement audits, performance audits, and assurance reviews conducted by the Australian National Audit Office (ANAO). These standards are intended to ensure consistency and compliance with the requirements set forth by the Act and other relevant legislation. The enacting body responsible for these standards is the Auditor-General, who sets them to maintain the integrity and reliability of audits and reviews performed by the ANAO. The overarching policy objective is to uphold the quality and independence of audits, thereby enhancing public accountability and trust in the audit process.
The ANAO Auditing Standards encompass standards issued by the Australian Auditing and Assurance Standards Board, as well as specific standards relevant to the types of audits and reviews conducted by the ANAO. These standards are designed to be in line with international auditing principles and ensure that the ANAO’s auditing practices meet high professional and ethical standards. By setting these standards, the Act aims to address any gaps in previous auditing practices, ensuring that all audits and reviews are thorough, transparent, and conducted with due diligence.
Scope and Application
The Australian National Audit Office Auditing Standards, established under section 24 of the Auditor-General Act 1997, pertain to individuals or entities engaged in the performance of various audits and reviews as outlined in the Act. This includes annual financial statement audits, annual performance statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office itself. The standards encompass those set by the Australian Auditing and Assurance Standards Board, certain standards listed in the Act, and AUS 810 Special Purpose Reports on the Effectiveness of Control Procedures. These auditing standards apply nationally across Australia, ensuring uniformity and consistency in the auditing practices across the Commonwealth. Notably, the Act revokes all previous auditing standards, emphasising the comprehensive update and replacement by these newly established standards. The application of these standards is critical in maintaining the integrity and reliability of financial and performance audits, ultimately supporting the oversight functions of the Auditor-General.
Key Provisions
Section 24 of the Auditor-General Act 1997 mandates the setting of auditing standards for specific audit functions, including annual financial statement audits, performance audits, and assurance reviews, as well as audits of the Australian National Audit Office (ANAO). These standards are designed to ensure that audits and reviews are performed in accordance with certain professional and legal requirements. The ANAO Auditing Standards are based on a combination of standards from the Australian Auditing and Assurance Standards Board (AUASB), specific AUASB standards listed in the legislation, and other applicable standards such as AUS 810, issued by the former Australian Accounting Research Foundation. Importantly, these standards replace all previous auditing standards set under section 24 of the Act.
The obligations imposed by these ANAO Auditing Standards are significant for the parties involved. Auditors and assurance practitioners must adhere to these standards when performing audits or reviews under the Act, ensuring that their work meets the rigorous criteria set forth. This includes compliance with ISSAI 200 and ISSAI 300, which are fundamental principles of financial and performance auditing issued by the International Organisation of Supreme Audit Institutions. Auditors must ensure that their audits and reviews are thorough, accurate, and conducted in a manner that upholds the integrity of the financial and performance reporting processes.
Failure to comply with the ANAO Auditing Standards can lead to severe consequences. While the specific legal text does not detail penalties, non-compliance with auditing standards can typically result in professional sanctions, legal action, or both. Auditors found to be in breach of these standards may face disciplinary action from professional bodies, and in some cases, criminal charges if their actions are deemed to be fraudulent or negligent. Additionally, organisations that fail to comply with audit requirements may face financial penalties, reputational damage, and potential legal liabilities.
In summary, the ANAO Auditing Standards play a crucial role in ensuring the integrity and reliability of audits and reviews conducted under the Auditor-General Act 1997. By adhering to these standards, auditors and assurance practitioners can maintain the trust of stakeholders and ensure that financial and performance reporting is accurate and transparent. Non-compliance can lead to significant professional and legal repercussions, underscoring the importance of strict adherence to these standards.