Australian National Audit Office Auditing Standards
I, Grant Hehir, Auditor-General, make the following instrument.
Dated 28 February 2018
Grant Hehir
Auditor-General
Name
- This instrument is the Australian National Audit Office Auditing Standards.
Commencement
2. This instrument commences as follows:
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/ Details |
The whole of this instrument | Date of registration | |
Authority
3. 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).
Auditing Standards
4. 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 paragraph 227B(1)(a) of the Australian Securities and Investments Commission Act 2001 (ASIC Act) 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 paragraph 227B(1)(b) of the ASIC Act.
Standard Number | Title | Issue Date |
ASA 805 | Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement | May 2017 |
ASRE 2400 | Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity | May 2017 |
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 | May 2017 |
ASAE 3100 | Compliance Engagements | February 2017 |
ASAE 3150 | Assurance Engagements on Controls | January 2015 |
ASRS 4400 | Agreed-Upon Procedures Engagements to Report Actual Findings | July 2013 |
5. In respect of a performance audit under Division 2 of Part 4 of the Act and a performance audit of the Australian National Audit Office under Division 2 of Part 7 of the Act the 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) Standard on Assurance Engagements ASAE 3500 Performance Engagements issued on 5 October 2017 by the AUASB pursuant to paragraph 227B(1)(b) of the ASIC Act, except for the following requirements paragraphs:
- Paragraph 33 relating to obtaining an understanding of internal controls relevant to the evaluation of the activity’s performance against the identified criteria;
ii. Paragraph 34 relating to procedures relating to non-compliance with laws and regulations; and
iii. Paragraph 45 relating to the assurance report content.
(b) The reporting requirements of the International Standard of Supreme Audit Institutions ISSAI 3000 Standard for Performance Auditing, endorsed 2016, by the International Organisation of Supreme Audit Institutions (INTOSAI) contained in paragraphs 116, 122, 124 and 126.
6. 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 INTOSAI (issued 2013).
7. These ANAO Auditing Standards revoke all previous auditing standards set under section 24 of the Act.
Overview
The Australian National Audit Office Auditing Standards instrument, gazetted in 2018, establishes the auditing standards to be adhered to by individuals undertaking various audit functions as outlined in the Auditor-General Act 1997. This instrument was enacted by Grant Hehir, the Auditor-General, in accordance with the authority vested in him by section 24 of the Act. The overarching policy objective of these standards is to ensure the integrity, transparency, and accountability of the audits conducted by the Australian National Audit Office and other relevant entities. By setting these auditing standards, the instrument aims to address the need for consistent and high-quality auditing practices across different types of audits, including financial statement audits, performance audits, and assurance reviews. These standards are designed to be compliant with both the requirements of the Act and other relevant legislation, thereby enhancing the overall audit quality and effectiveness within Australia.
Scope and Application
The Australian National Audit Office Auditing Standards apply to individuals and entities performing audits or reviews within the scope of the Auditor-General Act 1997. This encompasses annual financial statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office and the annual consolidated financial statements of the Australian Government. The standards are designed to ensure compliance with auditing practices that align with both the Act and other relevant legislation, including the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. The geographic reach of these standards is national, extending across the Commonwealth of Australia. The standards set by the Auditor-General incorporate various auditing standards issued by the Australian Auditing and Assurance Standards Board and the International Organisation of Supreme Audit Institutions, tailored to ensure they are not inconsistent with the requirements of the Act or other pertinent legislation. The application of these standards is broad, covering different types of audits and reviews, and they supersede all previous auditing standards set under the Act.
Key Provisions
The main operative sections of the Australian National Audit Office Auditing Standards (C2018G00152) establish the auditing standards that must be adhered to by individuals performing audits or reviews as specified in the Auditor-General Act 1997. Section 3 details the functions for which auditing standards are set, including annual financial statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office and the Australian Government's consolidated financial statements. Section 4 outlines that the ANAO Auditing Standards are comprised of current Australian Auditing and Assurance Standards Board (AUASB) standards, as well as specific standards related to performance audits as listed in the instrument. These standards are to be applied to the relevant audit or review activities unless they conflict with the requirements of the Act or other relevant legislation.
The Auditing Standards impose several obligations and requirements on the parties or entities they govern. Firstly, any person performing an audit or review as specified in Section 3 must comply with the ANAO Auditing Standards. These standards include both general auditing standards issued by the AUASB and specific standards for performance audits, ensuring that audits are conducted in accordance with recognised professional and international practices. The standards also require that these audits are performed with due professional care and that the auditor or reviewer must be independent and objective. Additionally, the standards necessitate the preparation and dissemination of audit reports that accurately reflect the findings and conclusions of the audit or review, ensuring transparency and accountability in the audit process.
There are no explicit offences, penalties, or consequences outlined for breaches of the Auditing Standards in this instrument. However, it is reasonable to infer that non-compliance with these standards could lead to significant repercussions under the broader framework of the Auditor-General Act 1997. The Act likely includes provisions that allow for disciplinary action, legal consequences, or other penalties for auditors who fail to adhere to the established standards, although the specific details would be governed by the Act itself. Additionally, the failure to comply with these standards could undermine the integrity and reliability of audit outcomes, potentially leading to broader accountability and governance issues within the entities being audited.