Scope of this Auditing StandardScope of this Auditing Standard

Scope of this Auditing Standard

1. This Auditing Standard deals with the auditor’s responsibility to communicate with those charged with governance in an audit of a financial report. Although this Auditing Standard applies irrespective of an entity’s governance structure or size, particular considerations apply where all of those charged with governance are involved in managing an entity, and for entities whose audit is conducted under the Corporations Act 2001. This Auditing Standard does not establish requirements regarding the auditor’s communication with an entity’s management or owners unless they are also charged with a governance role.
2. This Auditing Standard is written in the context of an audit of a financial report, but may also be applicable, adjusted as necessary in the circumstances, to audits of other historical financial information when those charged with governance have a responsibility to oversee the preparation of other historical financial information.
3. Recognising the importance of effective two‑way communication in an audit of a financial report, this Auditing Standard provides an overarching framework for the auditor’s communication with those charged with governance, and identifies some specific matters to be communicated with them. Additional matters to be communicated, which complement the requirements of this Auditing Standard, are identified in other Auditing Standards (see Appendix 1). In addition, ASA 265[1] establishes specific requirements regarding the communication of significant deficiencies in internal control the auditor has identified during the audit to those charged with governance. Further matters, not required by this or other Auditing Standards, may be required to be communicated by laws or regulations, by agreement with the entity, or by additional requirements applicable to the engagement, for example, the standards of a professional accountancy body. Nothing in this Auditing Standard precludes the auditor from communicating any other matters to those charged with governance. (Ref: Para. A24‑A27)