AUSTRALIAN NATIONAL AUDIT OFFICE AUDITING STANDARDS
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:
- an audit or review referred to in Division 1 (Financial Statement audits); Division 2 (Performance audits) or Division 2A (Assurance reviews) of Part 4 of the Act;
- an audit under Division 2 of Part 7 of the Act (Audit of the Australian National Audit Office);
- an audit under section 56 of the Financial Management and Accountability Act 1997 (Audit of Finance Minister’s annual financial statements).
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:
- standards made by the Australian Auditing and Assurance Standards Board (AUASB) pursuant to 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; and
- the following standards formulated by the AUASB pursuant to section 227B(1)(b) of the Australian Securities and Investments Commission Act 2001:
- ASA 805 Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement (issued October 2009)
- ASA 810 Engagements to Report on Summary Financial Statements (issued October 2009)
- ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity (issued March 2013)
- ASRE 2405 Review of Historical Financial Information Other than a Financial Report (issued August 2008)
- ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information (issued July 2007)
- ASAE 3100 Compliance Engagements (issued September 2008)
- ASAE 3402 Assurance Reports on Controls at a Service Organisation (issued June 2010)
- ASAE 3410 Assurance on Greenhouse Gas Statements (issued June 2012)
- ASAE 3420 Assurance Engagements To Report on the Compilation of
Pro Forma Historical Financial Information included in a Prospectus or other Document (issued November 2012) - ASAE 3450 Assurance Engagements involving Corporate Fundraisings and/or Prospective Financial Information (issued November 2012), and
- ASAE 3500 Performance Engagements (issued October 2008); and
- 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
- 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.
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).
These ANAO Auditing Standards revoke all previous auditing standards set under section 24 of the Act.
Ian McPhee
Auditor-General
19 December 2013
Overview
The Australian National Audit Office Auditing Standards were introduced under section 24 of the Auditor-General Act 1997 to establish auditing standards that must be adhered to by individuals conducting audits or reviews within the Australian National Audit Office (ANAO). These standards encompass financial statement audits, performance audits, assurance reviews, audits of the ANAO itself, and audits of the Finance Minister's annual financial statements. The purpose of these standards is to ensure that the audits and reviews conducted by the ANAO are performed with integrity and professionalism, thereby upholding the public's trust in the audit process. The ANAO Auditing Standards incorporate standards set by the Australian Auditing and Assurance Standards Board and other relevant entities, ensuring consistency with international auditing principles. The enactment of these standards by the Parliament aims to maintain high standards of accountability and transparency in public sector financial reporting and performance.
Scope and Application
The Australian National Audit Office Auditing Standards, as required by section 24 of the Auditor-General Act 1997, apply to persons performing specific audit and review functions, including financial statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office and the Finance Minister’s annual financial statements. These standards ensure that the audits and reviews conducted by these individuals or entities adhere to specific criteria, which are in alignment with the requirements set forth by the Act and other relevant legislation. The ANAO Auditing Standards encompass various standards formulated by the Australian Auditing and Assurance Standards Board (AUASB) and other related standards, which are applied to the relevant audit or review activities. This ensures that the audits and reviews are conducted in a manner that is consistent with international auditing principles, thereby maintaining the integrity and credibility of the audit processes. The application of these standards ensures that the audits and reviews are performed in accordance with the legislative requirements and professional standards, providing a robust framework for the audit and review activities undertaken by the ANAO.
Key Provisions
The Australian National Audit Office (ANAO) Auditing Standards, established under section 24 of the Auditor-General Act 1997, are designed to ensure that audits and reviews conducted by authorised persons adhere to high professional standards. These standards apply to various types of audits and reviews, including financial statement audits, performance audits, assurance reviews, audits of the ANAO itself, and audits of the Finance Minister’s annual financial statements. The ANAO Auditing Standards incorporate certain standards formulated by the Australian Auditing and Assurance Standards Board (AUASB) and other specific standards issued by the AUASB and the former Australian Accounting Research Foundation. These standards cover a range of activities, from special considerations in audits to assurance engagements and compliance checks.
Entities and individuals conducting audits and reviews under the Act must comply with the ANAO Auditing Standards. These standards are critical in ensuring that the audits and reviews are conducted systematically and in accordance with recognised professional practices. This includes the use of appropriate methodologies and adherence to the principles set forth in the standards such as ISSAI 200 and ISSAI 300 from the International Organisation of Supreme Audit Institutions. Compliance with these standards is not only a legal requirement but also a professional obligation aimed at maintaining the integrity and reliability of the audit and review processes.
Failure to comply with the ANAO Auditing Standards can lead to serious consequences. The Act does not explicitly detail offences, penalties, or specific legal consequences for non-compliance with the Auditing Standards themselves. However, breaches of these standards may indirectly result in legal repercussions if they lead to findings of professional misconduct, negligence, or failure to comply with the Act’s overarching requirements. Such outcomes could potentially involve investigations, sanctions from professional bodies, or legal action for any resultant damages or misrepresentations arising from non-compliance. It is essential for auditors and reviewers to be fully aware of these standards and ensure strict adherence to avoid any potential legal or professional consequences.