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 3150 | Assurance Engagements on Controls | January 2015 |
ASAE 3402 | Assurance Reports on Controls at a Service Organisation | June 2014 |
Standard Number | Title | Issue Date |
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) 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 issued in June 2014. 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.
Grant Hehir
Auditor-General
15 July 2015
Overview
The Australian National Audit Office Auditing Standards, established under section 24 of the Auditor-General Act 1997, set forth the auditing standards that must be adhered to by individuals conducting various audits and reviews within the Australian National Audit Office (ANAO). These standards aim to ensure the integrity and reliability of financial and performance audits conducted by the ANAO, aligning with both domestic and international best practices. The ANAO Auditing Standards incorporate, where applicable, standards from the Australian Auditing and Assurance Standards Board (AUASB), along with specific standards relevant to assurance reviews designated by the Auditor-General as Limited Scope Assurance Reviews. These standards collectively replace all previous auditing standards set under the Act, providing a comprehensive framework to guide the ANAO’s audit activities.
Scope and Application
The Australian National Audit Office Auditing Standards, established under section 24 of the Auditor-General Act 1997, apply to any person who performs an audit or review as specified in the Act, including annual financial statement audits, annual performance statement audits, performance audits, assurance reviews, and audits of the Australian National Audit Office itself. These standards govern the conduct of audits and reviews to ensure compliance with the requirements of the Act and any other relevant legislation. They incorporate the standards set by the Australian Auditing and Assurance Standards Board, ensuring a consistent and high level of auditing practice across Australia. Additionally, for Limited Scope Assurance Reviews, specific requirements from the Australian Standard on Assurance Engagements (ASAE 3000) apply, with reporting arrangements determined by the Auditor-General. These standards supersede all previously established auditing standards under the Act, ensuring a unified and updated framework for auditing activities within the scope of the Auditor-General Act 1997.
Key Provisions
The Australian National Audit Office Auditing Standards, as set under section 24 of the Auditor-General Act 1997, are designed to govern the conduct of audits and reviews by those performing specific functions outlined in the Act. These functions include annual financial statement audits (Division 1), annual performance statement audits (Division 1A), performance audits (Division 2), assurance reviews (Division 2A), and audits of the Australian National Audit Office itself (Division 2 of Part 7). The standards set by the Auditor-General are to be complied with and are informed by the Australian Auditing and Assurance Standards Board (AUASB) standards, which must be current at the relevant time. The ANAO Auditing Standards also incorporate specific standards issued by the AUASB as listed in the document, which cover a range of assurance engagements including audits, reviews, and other types of engagements. These standards are intended to ensure that audits and reviews are conducted in a manner consistent with fundamental principles of financial and performance auditing as established by the International Organisation of Supreme Audit Institutions.
The obligations imposed by the ANAO Auditing Standards are primarily directed at ensuring that the audits and reviews conducted under the Act are performed in a rigorous, consistent, and effective manner. Auditors and reviewers must adhere to the standards outlined in the Act and the AUASB standards, ensuring that their work complies with the requirements for the specific type of audit or review being undertaken. This includes following the detailed procedures and principles set out in the standards for planning, performing, obtaining evidence, documenting, and reporting on the audits and reviews. For Limited Scope Assurance Reviews, the Auditor-General has the authority to determine the specific reporting arrangements, including how the findings are to be communicated to Parliament.
The Act provides for specific consequences and penalties for breaches of the auditing standards. While the Act itself does not detail specific penalties, it is understood that breaches of the auditing standards could lead to disciplinary actions, potential legal consequences, and a loss of credibility and reputation for the auditors and reviewers involved. The seriousness of the breach, the impact on stakeholders, and the intent behind the non-compliance are all factors that could influence the severity of the penalties imposed. It is essential for auditors and reviewers to ensure strict adherence to the auditing standards to avoid any adverse outcomes.
In summary, the Australian National Audit Office Auditing Standards, as set by the Auditor-General under section 24 of the Auditor-General Act 1997, are designed to ensure that audits and reviews are conducted in accordance with rigorous and internationally recognised principles. The standards require adherence to specific AUASB standards and other detailed procedures to ensure that audits and reviews are thorough, consistent, and effective. Failure to comply with these standards could result in significant consequences, including legal and professional penalties.