{"id":"F2009L04062","name":"ASA 101 - Preamble to Australian Auditing Standards - October 2009","slug":"asa-101-preamble-to-australian-auditing-standards-october-2009","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":81587,"registerId":"commonwealth-F2009L04062-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"CONTENTS","sectionType":"part","heading":"CONTENTS","content":"#   \nCONTENTS\n\nCOMPILATION DETAILS\n\nAUTHORITY STATEMENT\n\nParagraphs\n\nApplication............................... 1-2\n\nOperative Date............................. 3-4\n\nIntroduction\n\nScope of this Auditing Standard.................. 5-6\n\nObjective................................. 7\n\nDefinitions................................ 8\n\nRequirements\n\nAuthority of the Paragraphs in Australian Auditing Standards 9-10\n\nEngagements under the Corporations Act 2001........ 11\n\nCompliance with Requirements.................. 12\n\nApplication and Other Explanatory Material\n\nAuthority of the Paragraphs in Australian Auditing Standards A1\n\nCompliance with Requirements.................. A2\n\nConformity with International Standards on Auditing","sortOrder":0},{"sectionNumber":"COMPILATION DETAILS","sectionType":"part","heading":"COMPILATION DETAILS","content":"#   \nCOMPILATION DETAILS\n\nAuditing Standard ASA 101 Preamble to Australian Auditing Standards as Amended\n\nThis compilation takes into account amendments made up to and including 27 June 2011 and was prepared on 27 June 2011 by the Auditing and Assurance Standards Board (AUASB).\n\nThis compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 101 (October 2009) as amended by another Auditing Standard which is listed in the Table below.","sortOrder":1},{"sectionNumber":"Table of Standards","sectionType":"subdivision","heading":"Table of Standards","content":"#### Table of Standards\n\n| Standard   | Date made       | Operative date |\n| ---------- | --------------- | -------------- |\n| ASA 101    | 27 October 2009 | 1 January 2010 |\n| ASA 2011-1 | 27 June 2011    | 1 July 2011    |","sortOrder":2},{"sectionNumber":"Table of Amendments","sectionType":"subdivision","heading":"Table of Amendments","content":"#### Table of Amendments\n\n| Paragraph affected   | How affected | By … [paragraph] |\n| -------------------- | ------------ | ---------------- |\n| Headers - Pages 8-12 | Amended      | ASA 2011-1 [14]  |\n| 3                    | Amended      | ASA 2011-1 [15]  |\n\n##   \nAUTHORITY STATEMENT\n\nAuditing Standard ASA 101 Preamble to Australian Auditing Standards (as amended at 27 June 2011) is set out in paragraphs  \n1 to A2.\n\nThis Auditing Standard is to be read in conjunction with the Australian Auditing Standards, operative on and after 1 January 2010.\n\nDated: 27 June 2011 M H Kelsall  \nChairman - AUASB","sortOrder":3},{"sectionNumber":"AUTHORITY STATEMENT","sectionType":"part","heading":"AUTHORITY STATEMENT","content":"##   \nAUTHORITY STATEMENT\n\nAuditing Standard ASA 101 Preamble to Australian Auditing Standards (as amended at 27 June 2011) is set out in paragraphs  \n1 to A2.\n\nThis Auditing Standard is to be read in conjunction with the Australian Auditing Standards, operative on and after 1 January 2010.","sortOrder":4},{"sectionNumber":"Auditing Standard ASA 101","sectionType":"part","heading":"Auditing Standard ASA 101","content":"## ![](image.002.png)Auditing Standard ASA 101\n\n### Preamble to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  an audit of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001;\n    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose;\n    3.  a review, by the independent auditor of the entity, of a financial report, or a complete set of financial statements, comprising historical financial information, for any other purpose; and\n    4.  a firm[\\[1\\]](#_ftn1) required to comply with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements.\n2.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.\n\n##### Operative Date\n\n1.  This Auditing Standard is operative for engagements with financial reporting periods commencing on or after 1 January 2010, and for firms required to establish systems of quality control in compliance with ASQC 1 by 1 January 2010. \\[Note: For operative dates of paragraphs changed or added by an amending Standard, see Compilation Details.\\]\n2.  This Auditing Standard supersedes interpretive information contained in ASA 100 Preamble to AUASB Standards to the extent that ASA 100 applies to the Australian Auditing Standards.","sortOrder":5},{"sectionNumber":"Preamble to Australian Auditing Standard","sectionType":"division","heading":"Preamble to Australian Auditing Standards","content":"## ![](image.002.png)Auditing Standard ASA 101\n\n### Preamble to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  an audit of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001;\n    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose;\n    3.  a review, by the independent auditor of the entity, of a financial report, or a complete set of financial statements, comprising historical financial information, for any other purpose; and\n    4.  a firm[\\[1\\]](#_ftn1) required to comply with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements.\n2.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.\n\n##### Operative Date\n\n1.  This Auditing Standard is operative for engagements with financial reporting periods commencing on or after 1 January 2010, and for firms required to establish systems of quality control in compliance with ASQC 1 by 1 January 2010. \\[Note: For operative dates of paragraphs changed or added by an amending Standard, see Compilation Details.\\]\n2.  This Auditing Standard supersedes interpretive information contained in ASA 100 Preamble to AUASB Standards to the extent that ASA 100 applies to the Australian Auditing Standards.","sortOrder":6},{"sectionNumber":"Application","sectionType":"section","heading":"Application","content":"##### Application\n\n1.  This Auditing Standard applies to:\n    1.  an audit of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001;\n    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose;\n    3.  a review, by the independent auditor of the entity, of a financial report, or a complete set of financial statements, comprising historical financial information, for any other purpose; and\n    4.  a firm[\\[1\\]](#_ftn1) required to comply with ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements.\n2.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.","sortOrder":7},{"sectionNumber":"Operative Date","sectionType":"section","heading":"Operative Date","content":"##### Operative Date\n\n1.  This Auditing Standard is operative for engagements with financial reporting periods commencing on or after 1 January 2010, and for firms required to establish systems of quality control in compliance with ASQC 1 by 1 January 2010. \\[Note: For operative dates of paragraphs changed or added by an amending Standard, see Compilation Details.\\]\n2.  This Auditing Standard supersedes interpretive information contained in ASA 100 Preamble to AUASB Standards to the extent that ASA 100 applies to the Australian Auditing Standards.","sortOrder":8},{"sectionNumber":"Introduction","sectionType":"section","heading":"Introduction","content":"##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  The purpose of this Auditing Standard is to set out mandatory components additional to those included elsewhere in the Australian Auditing Standards that are operative for:\n\n-   financial reporting periods commencing on or after 1 January 2010; and\n-   firms required to establish systems of quality control by 1 January 2010.\n\n1.  ASA 100 Preamble to AUASB Standards applies to all AUASB Standards other than the Australian Auditing Standards referred to in paragraph 5 of this Auditing Standard.\n\n##### Objective\n\n1.  The objective of the auditor and the firm is to use this Auditing Standard in order to understand, interpret and apply the Australian Auditing Standards that are operative for engagements with financial reporting periods commencing on or after 1 January 2010; and for firms required to establish systems of quality control by 1 January 2010.\n\n##### Definitions\n\n1.  For purposes of the Australian Auditing Standards, the following terms have the meanings attributed below:\n\n(a) Auditing Standards means auditing standards made under section 336 of the Corporations Act 2001 (the “Act”), and include:\n\n(i) ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and\n\n(ii) ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.\n\n(b) Australian Auditing Standards means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n##### Requirements\n\n###### Authority of the Paragraphs in Australian Auditing Standards\n\n1.  The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards. The mandatory components are included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.1).\n\n(ii) Operative Date.\n\n(iii) Objective(s).\n\n(iv) Definition(s).\n\n(v) Requirements.\n\n1.  The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components. The explanatory material is included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.2).\n\n(ii) Introduction.\n\n(iii) Application and Other Explanatory Material.\n\n(iv) Conformity with International Standards on Auditing.\n\n(v) Appendices.\n\nExplanatory material does not create or extend mandatory components. (Ref: Para. A1)\n\n###### Engagements under the Corporations Act 2001\n\n1.  The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:\n\n(a) an audit or a review conducted under Part 2M.3 of the Act; and\n\n(b) an audit conducted under Part 7.8 of the Act.\n\n###### Compliance with Requirements\n\n1.  When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)\n\n\\* \\* \\*\n\n##### Application and Other Explanatory Material\n\n###### Authority of the Paragraphs in Australian Auditing Standards  \n(Ref: Para. 10)\n\n1.  Included within the requirements section of a standard are references to paragraphs in the “Application and Other Explanatory Material” section of the standard. Such references do not extend or create requirements.\n\n###### Compliance with Requirements (Ref: Para. 12)\n\n1.  Under paragraph 12, an auditor need not document the reasons why a requirement is not relevant. However, where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant requirement, the auditor is required under ASA 230 or ASRE 2410[\\[2\\]](#_ftn2), as applicable, to document:\n\n(a) the circumstances surrounding the inability to comply;\n\n(b) the reasons for the inability to comply; and\n\n(c) justification of how alternative procedures achieve the objectives of the requirement.\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard relates to the Australian legislative environment and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).\n\nCompliance with this Auditing Standard enables compliance with the ISAs.","sortOrder":9},{"sectionNumber":"Scope of this Auditing Standard","sectionType":"section","heading":"Scope of this Auditing Standard","content":"###### Scope of this Auditing Standard\n\n1.  The purpose of this Auditing Standard is to set out mandatory components additional to those included elsewhere in the Australian Auditing Standards that are operative for:\n\n-   financial reporting periods commencing on or after 1 January 2010; and\n-   firms required to establish systems of quality control by 1 January 2010.\n\n1.  ASA 100 Preamble to AUASB Standards applies to all AUASB Standards other than the Australian Auditing Standards referred to in paragraph 5 of this Auditing Standard.","sortOrder":10},{"sectionNumber":"Objective","sectionType":"section","heading":"Objective","content":"##### Objective\n\n1.  The objective of the auditor and the firm is to use this Auditing Standard in order to understand, interpret and apply the Australian Auditing Standards that are operative for engagements with financial reporting periods commencing on or after 1 January 2010; and for firms required to establish systems of quality control by 1 January 2010.","sortOrder":11},{"sectionNumber":"Definitions","sectionType":"section","heading":"Definitions","content":"##### Definitions\n\n1.  For purposes of the Australian Auditing Standards, the following terms have the meanings attributed below:\n\n(a) Auditing Standards means auditing standards made under section 336 of the Corporations Act 2001 (the “Act”), and include:\n\n(i) ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and\n\n(ii) ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.\n\n(b) Australian Auditing Standards means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.","sortOrder":12},{"sectionNumber":"Requirements","sectionType":"section","heading":"Requirements","content":"##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  The purpose of this Auditing Standard is to set out mandatory components additional to those included elsewhere in the Australian Auditing Standards that are operative for:\n\n-   financial reporting periods commencing on or after 1 January 2010; and\n-   firms required to establish systems of quality control by 1 January 2010.\n\n1.  ASA 100 Preamble to AUASB Standards applies to all AUASB Standards other than the Australian Auditing Standards referred to in paragraph 5 of this Auditing Standard.\n\n##### Objective\n\n1.  The objective of the auditor and the firm is to use this Auditing Standard in order to understand, interpret and apply the Australian Auditing Standards that are operative for engagements with financial reporting periods commencing on or after 1 January 2010; and for firms required to establish systems of quality control by 1 January 2010.\n\n##### Definitions\n\n1.  For purposes of the Australian Auditing Standards, the following terms have the meanings attributed below:\n\n(a) Auditing Standards means auditing standards made under section 336 of the Corporations Act 2001 (the “Act”), and include:\n\n(i) ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and\n\n(ii) ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.\n\n(b) Australian Auditing Standards means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n##### Requirements\n\n###### Authority of the Paragraphs in Australian Auditing Standards\n\n1.  The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards. The mandatory components are included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.1).\n\n(ii) Operative Date.\n\n(iii) Objective(s).\n\n(iv) Definition(s).\n\n(v) Requirements.\n\n1.  The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components. The explanatory material is included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.2).\n\n(ii) Introduction.\n\n(iii) Application and Other Explanatory Material.\n\n(iv) Conformity with International Standards on Auditing.\n\n(v) Appendices.\n\nExplanatory material does not create or extend mandatory components. (Ref: Para. A1)\n\n###### Engagements under the Corporations Act 2001\n\n1.  The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:\n\n(a) an audit or a review conducted under Part 2M.3 of the Act; and\n\n(b) an audit conducted under Part 7.8 of the Act.\n\n###### Compliance with Requirements\n\n1.  When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)\n\n\\* \\* \\*\n\n##### Application and Other Explanatory Material\n\n###### Authority of the Paragraphs in Australian Auditing Standards  \n(Ref: Para. 10)\n\n1.  Included within the requirements section of a standard are references to paragraphs in the “Application and Other Explanatory Material” section of the standard. Such references do not extend or create requirements.\n\n###### Compliance with Requirements (Ref: Para. 12)\n\n1.  Under paragraph 12, an auditor need not document the reasons why a requirement is not relevant. However, where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant requirement, the auditor is required under ASA 230 or ASRE 2410[\\[2\\]](#_ftn2), as applicable, to document:\n\n(a) the circumstances surrounding the inability to comply;\n\n(b) the reasons for the inability to comply; and\n\n(c) justification of how alternative procedures achieve the objectives of the requirement.\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard relates to the Australian legislative environment and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).\n\nCompliance with this Auditing Standard enables compliance with the ISAs.","sortOrder":13},{"sectionNumber":"Authority of the Paragraphs in Australia","sectionType":"section","heading":"Authority of the Paragraphs in Australian Auditing Standards","content":"###### Authority of the Paragraphs in Australian Auditing Standards\n\n1.  The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards. The mandatory components are included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.1).\n\n(ii) Operative Date.\n\n(iii) Objective(s).\n\n(iv) Definition(s).\n\n(v) Requirements.\n\n1.  The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components. The explanatory material is included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.2).\n\n(ii) Introduction.\n\n(iii) Application and Other Explanatory Material.\n\n(iv) Conformity with International Standards on Auditing.\n\n(v) Appendices.\n\nExplanatory material does not create or extend mandatory components. (Ref: Para. A1)","sortOrder":14},{"sectionNumber":"Engagements under the Corporations Act 2","sectionType":"section","heading":"Engagements under the Corporations Act 2001","content":"###### Engagements under the Corporations Act 2001\n\n1.  The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:\n\n(a) an audit or a review conducted under Part 2M.3 of the Act; and\n\n(b) an audit conducted under Part 7.8 of the Act.","sortOrder":15},{"sectionNumber":"Compliance with Requirements","sectionType":"section","heading":"Compliance with Requirements","content":"###### Compliance with Requirements\n\n1.  When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)\n\n\\* \\* \\*","sortOrder":16},{"sectionNumber":"Application and Other Explanatory Materi","sectionType":"section","heading":"Application and Other Explanatory Material","content":"##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  The purpose of this Auditing Standard is to set out mandatory components additional to those included elsewhere in the Australian Auditing Standards that are operative for:\n\n-   financial reporting periods commencing on or after 1 January 2010; and\n-   firms required to establish systems of quality control by 1 January 2010.\n\n1.  ASA 100 Preamble to AUASB Standards applies to all AUASB Standards other than the Australian Auditing Standards referred to in paragraph 5 of this Auditing Standard.\n\n##### Objective\n\n1.  The objective of the auditor and the firm is to use this Auditing Standard in order to understand, interpret and apply the Australian Auditing Standards that are operative for engagements with financial reporting periods commencing on or after 1 January 2010; and for firms required to establish systems of quality control by 1 January 2010.\n\n##### Definitions\n\n1.  For purposes of the Australian Auditing Standards, the following terms have the meanings attributed below:\n\n(a) Auditing Standards means auditing standards made under section 336 of the Corporations Act 2001 (the “Act”), and include:\n\n(i) ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements; and\n\n(ii) ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity.\n\n(b) Australian Auditing Standards means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n##### Requirements\n\n###### Authority of the Paragraphs in Australian Auditing Standards\n\n1.  The auditor shall apply the mandatory components of the Australian Auditing Standards when conducting an audit or review in accordance with those Standards. The mandatory components are included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.1).\n\n(ii) Operative Date.\n\n(iii) Objective(s).\n\n(iv) Definition(s).\n\n(v) Requirements.\n\n1.  The auditor shall consider the whole text of an Auditing Standard to understand, interpret and apply the mandatory components. The explanatory material is included in each Auditing Standard under the headings listed below:\n\n(i) Application (paragraph Aus 0.2).\n\n(ii) Introduction.\n\n(iii) Application and Other Explanatory Material.\n\n(iv) Conformity with International Standards on Auditing.\n\n(v) Appendices.\n\nExplanatory material does not create or extend mandatory components. (Ref: Para. A1)\n\n###### Engagements under the Corporations Act 2001\n\n1.  The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act 2001 applies specifically to:\n\n(a) an audit or a review conducted under Part 2M.3 of the Act; and\n\n(b) an audit conducted under Part 7.8 of the Act.\n\n###### Compliance with Requirements\n\n1.  When, in the circumstances of the audit, a requirement is not relevant due to the conditions described in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, the auditor is not required to document the reason(s) why the requirement is not relevant. (Ref: Para. A2)\n\n\\* \\* \\*\n\n##### Application and Other Explanatory Material\n\n###### Authority of the Paragraphs in Australian Auditing Standards  \n(Ref: Para. 10)\n\n1.  Included within the requirements section of a standard are references to paragraphs in the “Application and Other Explanatory Material” section of the standard. Such references do not extend or create requirements.\n\n###### Compliance with Requirements (Ref: Para. 12)\n\n1.  Under paragraph 12, an auditor need not document the reasons why a requirement is not relevant. However, where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant requirement, the auditor is required under ASA 230 or ASRE 2410[\\[2\\]](#_ftn2), as applicable, to document:\n\n(a) the circumstances surrounding the inability to comply;\n\n(b) the reasons for the inability to comply; and\n\n(c) justification of how alternative procedures achieve the objectives of the requirement.\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard relates to the Australian legislative environment and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).\n\nCompliance with this Auditing Standard enables compliance with the ISAs.","sortOrder":17},{"sectionNumber":"Compliance with Requirements (Ref: Para.","sectionType":"section","heading":"Compliance with Requirements (Ref: Para. 12)","content":"###### Compliance with Requirements (Ref: Para. 12)\n\n1.  Under paragraph 12, an auditor need not document the reasons why a requirement is not relevant. However, where in rare and exceptional circumstances, factors outside the auditor’s control prevent the auditor from complying with an essential procedure contained within a relevant requirement, the auditor is required under ASA 230 or ASRE 2410[\\[2\\]](#_ftn2), as applicable, to document:\n\n(a) the circumstances surrounding the inability to comply;\n\n(b) the reasons for the inability to comply; and\n\n(c) justification of how alternative procedures achieve the objectives of the requirement.","sortOrder":19},{"sectionNumber":"Conformity with International Standards ","sectionType":"section","heading":"Conformity with International Standards on Auditing","content":"##### Conformity with International Standards on Auditing\n\nThis Auditing Standard relates to the Australian legislative environment and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).\n\nCompliance with this Auditing Standard enables compliance with the ISAs.","sortOrder":20}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This is a foundational/meta-standard that serves its original purpose: establishing the framework for reading and applying other auditing standards. The 2011 amendments were minor technical updates (header changes and operative date clarification) that did not expand the scope beyond its intended function as an interpretive preamble."},"complexity_factors":["Minimal cross-referencing—only references to ASA 200, ASA 230, ASRE 2410, and ASQC 1","Only 2 defined terms ('Auditing Standards' and 'Australian Auditing Standards'), though these involve nested sub-definitions","Simple conditional logic: distinguishes between mandatory vs explanatory material, and between relevant vs irrelevant requirements","Short document—approximately 12 substantive paragraphs plus compilation details","Single layer of exceptions (paragraph 12 regarding documentation relief) with one caveat for 'rare and exceptional circumstances'","Repetitive structure due to compilation format (same content appears multiple times under different headings)"],"plain_english_summary":"ASA 101 is the user manual for Australia’s auditing standards: it tells auditors which material in the standards is mandatory and which is explanatory guidance, and clarifies how to apply the standards in practice. \n\nIt affects auditors, audit firms and anyone performing audits or reviews, provides limited documentation relief where requirements don’t apply, and ensures consistent, reliable audits to protect investors and the public."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This compilation and the listed amendment(s) (ASA 2011-1) adjust operative dates and update headers but do not materially expand ASA 101's purpose. The instrument remains a preamble clarifying which parts of Australian Auditing Standards are mandatory, its scope tied to engagements from 1 January 2010 and firms required to implement ASQC 1. Table of Amendments records only header/page changes and a change to paragraph 3 (Compilation Details), not a substantive broadening of scope."},"complexity_factors":["Short, focused instrument (limited number of substantive paragraphs and repeated explanatory material).","2 defined terms stated explicitly (\"Auditing Standards\" and \"Australian Auditing Standards\") plus references to ASQC 1 and ASRE 2410 (Definitions section).","Cross‑references to multiple other standards and legislation (Corporations Act 2001 s.336, ASA 100, ASA 200, ASA 230, ASRE 2410, ASQC 1).","Conditional logic limited to a small set of exceptions (e.g. when a requirement is 'not relevant' and the separate exception for inability to perform an essential procedure).","Operative date and amendment history add minor temporal complexity (operative for periods commencing on/after 1 Jan 2010; Table of Amendments).","Explanatory vs mandatory distinction requires interpretation but is not heavily nested or iterative."],"plain_english_summary":"**What this instrument does (mechanically)\n\n- ASA 101 is the preamble to the suite of Australian Auditing Standards. It tells auditors and audit firms which parts of each Auditing Standard are mandatory, what parts are explanatory only, and how to treat cross‑references to other material. (Paras. 9–10, A1.)\n- It sets the scope: the Standard applies to audits and reviews of financial reports required by the Corporations Act 2001 (annual and half‑year audits/reviews), audits/reviews done for other purposes, and to firms that must comply with ASQC 1 (quality control). It also applies, where relevant, to other historical financial information. (Paras. 1–2, Scope sections.)\n- It fixes the operative date: the rules in ASA 101 apply to engagements with reporting periods commencing on or after 1 January 2010 and to firms required to have quality control systems by 1 January 2010. (Operative Date.)\n- It provides short definitions used in the Australian Auditing Standards (for example, \"Auditing Standards\" and \"Australian Auditing Standards\"). (Definitions.)\n- It directs auditors to apply the mandatory components of each Auditing Standard (Application, Operative Date, Objective(s), Definition(s), Requirements) and to read the whole standard to understand them. Explanatory material (Introduction, Application and Other Explanatory Material, Conformity with ISAs, Appendices) is explicitly non‑mandatory and does not create new requirements. (Paras. 9–10, A1.)\n- It explains treatment of requirements under the Corporations Act (application covers audits/reviews under Part 2M.3 and audits under Part 7.8). (Para. 11.)\n- It limits documentation obligations where a requirement is \"not relevant\" under the conditions in ASA 200: an auditor need not document why a requirement is not relevant. But it creates an exception: if external factors outside the auditor’s control prevent complying with an essential procedure, the auditor must document the circumstances, reasons and how alternative procedures achieved the objective (under ASA 230 or ASRE 2410 as applicable). (Para. 12; Para. A2.)\n\nWho it affects and who decides\n\n- Primary affected parties: audit firms and engagement auditors (they must adopt the mandatory components, apply definitions and, where required, establish quality control systems under ASQC 1). (Paras. 1, 4, Definitions, Operative Date.)\n- Secondary affected parties: audit clients (because compliance costs and procedures are borne by firms and may be reflected in fees) and regulators who rely on consistent audit practice. (Scope and Operative Date imply regulatory context.)\n- Decision makers: the AUASB issues and amends the Standards; the engagement auditor and the firm decide how to apply the Standards in each engagement, including whether a requirement is \"not relevant\" in the engagement context and what alternative procedures to use when an essential procedure cannot be performed. (Authority statement; Paras. 9–12.)\n\nWhy it matters (official purpose and practical trade‑offs)\n\n- Official purpose: ASA 101 is presented as a tool for auditors and firms to \"understand, interpret and apply\" the Australian Auditing Standards operative for engagements commencing on/after 1 January 2010 and for firms required to put quality control systems in place by that date. (Objective.)\n- Practical effects and trade‑offs:\n  - Compliance clarity: the Standard reduces uncertainty about what parts of a standard are obligatory by listing mandatory headings and saying explanatory text is not mandatory (Paras. 9–10, A1). That concentrates auditors’ attention on explicit requirements. Benefit: potentially more consistent application of core requirements. Cost: some useful guidance in explanatory material is non‑binding, so auditors may give it less weight.\n  - Documentation burden: ASA 101 reduces routine paperwork by not requiring auditors to document why a requirement is not relevant in many cases (Para. 12). Benefit: lower documentation costs. Trade‑off: greater auditor judgement — which can produce inconsistent documentation practices across firms and engagements and raises oversight difficulties for regulators.\n  - Exception and safeguards: where an essential procedure cannot be completed for reasons outside the auditor’s control, auditors must document the circumstances and alternative procedures used (Para. A2). This preserves evidential traceability in genuine exceptions but requires additional documentation in such cases.\n  - Quality control costs: firms required to adopt ASQC 1 must establish and maintain system(s) of quality control by the operative date, which is a direct cost (Operative Date; Definitions referring to ASQC 1). These costs are borne by firms and may be passed to clients in fees.\n  - Discretion and capacity effects: because the Standard leaves interpretive judgments to auditors and firms (for example, about relevance of particular requirements), firms with more compliance resources are better placed to document and justify judgments and to implement ASQC 1 systems. That may influence competitive dynamics in the market for audit services (Scope; Operative Date; Paras. 9–12).\n\nImplementation risks and compliance burden\n\n- Ambiguity risk: terms such as \"not relevant\" and \"rare and exceptional circumstances\" require judgement and may be applied inconsistently across firms and engagements (Para. 12; A2). This creates monitoring and enforcement challenges for regulators.\n- Compliance costs: establishing ASQC 1 systems and documenting exceptions impose resource and time costs on firms (Definitions; Operative Date). Smaller firms may face proportionally higher burdens.\n\nConcrete who‑pays / who‑decides / behaviour change summary (with citations)\n\n- Who pays: audit firms must bear the cost of implementing quality control systems (ASQC 1) and additional documentation when essential procedures cannot be completed (Definitions; Operative Date; Para. A2). Audit clients may indirectly pay via fees. (Paras. 1, Operative Date, A2.)\n- Who decides: AUASB issues standards; engagement auditors/firms decide whether a requirement is relevant and which alternative procedures are adequate when essential procedures cannot be performed. (Authority statement; Paras. 9–12.)\n- Behaviour change required: auditors will focus on the mandatory headings in each standard, treat explanatory material as guidance only, will usually not document why requirements are irrelevant (reducing routine documentation), but must document when inability to comply with an essential procedure stems from external factors and how they satisfied the objective otherwise. (Paras. 9–12; A1–A2.)\n\nSource‑attributed purpose claim and assessment\n\n- The Standard claims to increase clarity about which components are mandatory and to align the Australian Auditing Standards with the legislative environment and International Standards on Auditing where possible (Introduction; Conformity). Mechanically it does so by specifying headings that carry mandatory force and by setting operative dates and definitions. The policy trade‑offs are explicit in the document: greater clarity about mandatory components and reduced routine documentation on the one hand (efficiency gains), and increased reliance on auditor judgement with attendant risks of inconsistent application and varying compliance costs across firms on the other (Paras. 9–12; A1–A2)."}},"importantCases":[],"_links":{"self":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009","history":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009/history","analysis":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009/analysis","conflicts":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009/conflicts","importantCases":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009/important-cases","documents":"/api/acts/asa-101-preamble-to-australian-auditing-standards-october-2009/documents"}}