Main changes from AUS 526 (September 200Main changes from AUS 526 (September 2002) ) Auditing Fair Value Measurements and Disclosures

Main changes from AUS 526 (September 2002) ) Auditing Fair Value Measurements and Disclosures

The main differences between this Auditing Standard and the Auditing Standard issued by the Auditing & Assurance Standards Board of the Australian Accounting Research Foundation, AUS 526 Auditing Fair Value Measurements and Disclosures (September 2002), are that in this Auditing Standard:

1. The word ‘shall’, in the bold-type paragraphs, is the terminology used to describe an auditor’s mandatory requirements, whereas an auditor’s degree of responsibility is described in AUS 526 by the word ‘should’.
2. The explanatory guidance paragraphs provide guidance and illustrative examples to assist the auditor in fulfilling the mandatory requirements, whereas in AUS 526 some obligations are implied within certain explanatory paragraphs. Accordingly, such paragraphs have been re-drafted to clarify that the matter forms part of explanatory guidance.
3. The following implied obligations in AUS 526, have been elevated and re-stated as a specific mandatory requirements:

(a) When disclosure of fair value information under the applicable financial reporting framework is omitted because it is not practicable to determine fair value with sufficient reliability, the auditor shall assess the adequacy of disclosures required in these circumstances (paragraph 68).

(b) If the entity has not appropriately disclosed fair value information required by the applicable financial reporting framework, the auditor shall determine whether the financial report is materially misstated by the departure from the applicable financial reporting framework (paragraph 69).

AUTHORITY STATEMENT

The Auditing and Assurance Standards Board (AUASB) makes Auditing Standard ASA 545 Auditing Fair Value Measurements and Disclosures as set out in paragraphs 1 to 75 and Appendix 1, pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.

This Auditing Standard is to be read in conjunction with the Preamble to AUASB Standards, which sets out the intentions of the AUASB on how the Auditing Standards are to be understood, interpreted and applied.

The mandatory requirements of this Auditing Standard are set out in bold-type paragraphs.

Dated 28 April 2006 M H Kelsall
Chairman - AUASB