The AUASB is working with the Water Accounting Standards Board to establish a joint working group, which will consider assurance requirements for water reporting and the possible development of a relevant new standard.

During the first quarter of 2010, the AUASB provided comments to the Department of Climate Change (DCC) on a draft of the National Greenhouse and Energy Reporting (NGER) Scheme Audit Guidance, intended to assist auditors in complying with the NGER legislation when conducting engagements on emissions.

The AUASB is seeking consistency between the requirements for audits under the NGER legislation and requirements for assurance engagements in the AUASB Standards, including ASAE 3000 and ASAE 3100, which are directly applicable to emissions assurance. Read more

The 2009 AUASB Consultative meeting, held in Melbourne on 8 December 2009, encouraged thought-provoking discussion. The meeting was attended by 52 stakeholders, including the AUASB Board members and staff members. The AUASB has added to its agenda various recommendations made at this meeting, including (but not limited to):

• the revision and development of guidance statements to accompany the new suite of auditing standards in Clarity format and on other relevant topics
• how to address potential inconsistencies in the scope of assurance engagements and the level of assurance provided for different entities, in relation to NGERS reporting
• the monitoring role of the AUASB on relevant issues

Click here to see the summary notes from the meeting.

The AUASB will consider a draft Guidance Statement on Bank Confirmation Requests for approval, at the 19 April 2010 Board meeting. The new Guidance Statement, which has been developed in consultation with the banking industry, will replace AGS 1002 Bank Confirmation Requests, which was issued in October 1995. The draft Guidance Statement will include additional guidance and revised bank confirmation forms to improve bank confirmation processes for audit practitioners and banks. Read more

The AUASB is developing a new Clarity standard for service auditors, ASAE 3402 Assurance Reports on Controls at a Service Organisation, which is expected to be issued as an exposure draft in April for comment. Read more

The Auditing and Assurance Standards Board (AUASB) has released three Guidance Statements that have been updated to bring them in line with the new Clarity versions of the Auditing Standards that are applicable for financial reporting periods commencing on or after 1 January 2010.

Each new Guidance Statement includes an application paragraph that aligns the guidance to the Clarity Auditing Standards. This means that the pre-existing Guidance Statements continue to relate to the pre-existing Auditing Standards. These Guidance Statements will be withdrawn in due course when the Auditing Standards to which they relate are withdrawn.

The guidance updates are necessary to maintain the relevance of this important support material.

The main changes are:

• GS 001 Concise Financial Reports under the Corporations Act 2001 – this guidance has been updated to align with the new Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements. Paragraph Aus 1.1 of that standard refers specifically to GS 001.

• GS 006 Electronic Publication of the Auditor’s Report – the changes to this guidance are quite substantive. Although the underlying concepts and issues relating to the electronic publication of an auditor’s report remain essentially unchanged, the guidance material has been broadened and is more specific.

• GS 008 The Auditor's Report on a Remuneration Report Under Section 300A of the Corporations Act 2001 – the main text of this Guidance Statement has had very little change, however, the illustrative auditor’s reports have been updated in line with the new reporting requirements set out in ASA 700 Forming an Opinion and Reporting on a Financial Report.

The AUASB will be extending its review enagagement standards in response to proposed changes to the reporting requirements under the Corporations Act 2001, relating to certain companies limited by guarantee.

The proposed law reforms seek to enable companies limited by guarantee, with revenues between $250K and $1m, to elect to have their financial report reviewed instead of audited.

As the reforms are aimed at being operative for the 30 June 2010 reporting period, the AUASB has decided to issue an Exposure Draft very soon to enable constituents to understand the proposed form and content of the revised standard. Constituents are encouraged to respond quickly to the Exposure Draft when it becomes available.

Coming Soon

ED ASAE 3402 Assurance Reports on Controls at a Service Organisation

2010 Board meetings
Apr 19
Jun 7-8
Jul 26
Sep 13
Nov 29

During the past few months, the AUASB and the joint accounting bodies presented information sessions across the country on the new suite of auditing standards in Clarity format.

The annual AUASB Consultative Meeting was held in December 2009 at the RACV Club, Melbourne.

The AUASB congratulates Colin Murphy, Board member and Auditor-General for Western Australia, on being awarded the West Australian Public Service Medal for outstanding public service at senior levels in the financial and business services areas of the Western Australian Government.