Explanatory Statement

ASA 2013‑3 Amendments to Australian Auditing Standards

Issued by the Auditing and Assurance Standards Board

Obtaining a Copy of this Explanatory Statement

This Explanatory Statement is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au

Contact Details

Reasons for Issuing Auditing Standard ASA 2013‑3

The Auditing and Assurance Standards Board (AUASB) issues Auditing Standard ASA 2013‑3 Amendments to Australian Auditing Standards, pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.

The AUASB is an independent statutory committee of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act).  Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation.  These Auditing Standards are legislative instruments under the Legislative Instruments Act 2003.  Under section 227B of the ASIC Act, the AUASB may formulate Assurance Standards for other purposes.

Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality as well as continuing to develop auditing and assurance standards other than for historical financial information. 

Auditing Standards Amended by ASA 2013‑3

This Auditing Standard makes amendments to the following Auditing Standards:

ASA 102         Compliance with Ethical Requirements when Performing Audits, Reviews and Other          Assurance Engagements

ASA 502         Audit Evidence - Specific Considerations for Litigation and Claims

ASA 570         Going Concern

ASA 580         Written Representations

ASA 700         Forming an Opinion and Reporting on a Financial Report

ASA 800         Special Considerations - Audits of Financial Reports Prepared in Accordance with            Special Purpose Frameworks

ASRE 2410     Review of a Financial Report Performed by the Independent Auditor of the Entity

ASRE 2415     Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting       under the ACNC Act or Other Applicable Legislation or Regulation

Purpose of Auditing Standard ASA 2013‑3 Amendments to Australian Auditing Standards

The purpose of the Auditing Standard is to make amendments to the Auditing Standards listed above.

Main Features

The Auditing Standard makes amendments that comprise editorial changes made by the AUASB in order to maintain the quality and consistency of the presentation of the Australian Auditing Standards.

The amendments do not have an impact on the requirements of the Auditing Standards and therefore do not impact on the practical application of performing audits or reviews under those standards.

Operative Date

This Auditing Standard is operative for financial reporting periods commencing on or after 1 July 2013.

Process of making Australian Auditing Standards

The AUASB’s Strategic Direction, inter alia, provides that the AUASB develop Australian Auditing Standards that:

·                    have a clear public interest focus and are of the highest quality;

·                    use the International Standards on Auditing (ISAs) of the International Auditing and Assurance Standards Board (IAASB) as the underlying standards;

·                    conform with the Australian regulatory environment; and

·                    are capable of enforcement.

Consultation Process prior to issuing the Auditing Standard

The AUASB has consulted publicly as part of its due process in developing the Auditing Standard.  Exposure Draft ED 01/13 Proposed Auditing Standard ASA 2013-3 Amendments to Australian Auditing Standards was issued on 28 May 2013 with a 30 day comment period.

Submissions were received by the AUASB and these were considered as part of the development and finalisation of the Auditing Standard.

Regulatory Impact Statement

A Regulation Impact Assessment (RIA) has been prepared in connection with the amendments to the Australian Auditing Standards as set out in ASA 2013-3.  The RIA has been approved by the Office of Best Practice Regulation (OPBR).