Mandatory RequirementsMandatory Requirements

Mandatory Requirements

1. Within each AUASB Standard, an auditor’s obligations are stated as mandatory requirements that are identified in bold-type. The mandatory requirements consist of basic principles and essential procedures.
2. An auditor is required to comply with all mandatory requirements except when:
   1. application of the mandatory requirement(s) would relate to classes of transactions, account balances or disclosures that are immaterial;
   2. an auditor, using professional judgement, has chosen not to adopt a particular approach or procedure where the AUASB Standard permits or requires the auditor to choose from alternative approaches or procedures; or
   3. a mandatory requirement(s) is conditional and the condition is not present.
3. When one or more of the exceptions described in paragraph 11 exist, a mandatory requirement is not relevant and the auditor is not required to document the circumstances giving rise to the exception.
4. In the case of an audit engagement, the mandatory requirements of each Auditing Standard are to be applied in conjunction with the mandatory requirements of other relevant Auditing Standards.
5. In the case of a review engagement, the auditor is required to apply the mandatory requirements contained only in the specified standard applicable to that review engagement, in conjunction with this Preamble to AUASB Standards. There is no requirement to apply the mandatory requirements of other AUASB Standards.