AUASB Drafting ApproachAUASB Drafting Approach

AUASB Drafting Approach

1. The following drafting principles and conventions have been adopted to implement the objectives discussed above:
   1. mandatory requirements and explanatory guidance are shown in separate paragraphs;
   2. paragraphs containing mandatory requirements are shown in bold-type text;
   3. the word ‘shall’ is used within mandatory requirements paragraphs to denote the obligations an auditor is required to comply with in the conduct of an audit or review;
   4. the present tense of verbs is used in the explanatory guidance when it is the best form of expression. Use of the present tense does not create or imply mandatory requirements. The present tense is used in examples and other explanatory guidance that relate to professional judgement and professional scepticism; and
   5. practical examples are used in explanatory guidance. Practical examples do not constitute basic principles or essential procedures (mandatory requirements).
2. The drafting utilised in AUASB Standards reflects the AUASB’s intention that:
   1. the auditor is required to exercise professional judgement, as described in paragraph 36, according to the given circumstances; and
   2. explanatory guidance does not extend:
      1. mandatory requirements; or
      2. the auditor’s obligations under AUASB Standards.
3. AUASB Standards, as mentioned above, are based commonly on their ISA-equivalent standard. For each AUASB Standard, obligations implied within the explanatory guidance of the equivalent ISA have been:
   1. when appropriate, elevated to a mandatory requirement (bold-type); or
   2. linked to a mandatory requirement(s), thereby demonstrating the AUASB’s intention that the explanatory guidance is interpreted in the context of the relevant mandatory requirement; or
   3. prefaced by inserting the word ‘ordinarily’ as a qualifier (see below).

Words and Phrases

1. The following words and phrases are used in AUASB Standards for the respective stated purposes (alphabetically):
   1. explanatory guidance means suggested or typical audit procedures, practical examples and other explanatory details and procedures that are included for the purposes of understanding, and complying with, mandatory requirements. Explanatory guidance does not create or extend mandatory requirements or the auditor’s obligations under AUASB Standards.
   2. ‘in accordance with…the auditor is required to…’ means explanatory guidance that is directly linked to a mandatory requirement, either in the same AUASB Standard or in another AUASB Standard. The phrase is used only where the wording in the explanatory guidance is identical to that in the mandatory requirement.