ASA 600 - Using the Work of Another Auditor - April 2006
Main changes from AUS 602 (July 2002) UsMain changes from AUS 602 (July 2002) Using the Work of Another Auditor
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Main changes from AUS 602 (July 2002) Using the Work of Another Auditor
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 602 Using the Work of Another Auditor (July 2002), are that in this Auditing Standard:
- 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 602 by the word ‘should’.
- The explanatory guidance paragraphs provide guidance and illustrative examples to assist the auditor in fulfilling the mandatory requirements, whereas in AUS 602 some obligations are implied within certain explanatory paragraphs. Accordingly, these paragraphs have been re-drafted to clarify that the matter forms part of the explanatory guidance.
- The following implied obligation in AUS 602 has been elevated and restated as a specific mandatory requirement:
(a) when the other auditor issues, or intends to issue, a modified auditor’s report, the principal auditor shall consider:
(i) the nature and significance of the modification, in relation to the financial report of the entity on which the principal auditor is reporting; and
(ii) whether a modification is also required to the principal auditor’s report, under ASA 701 Modifications to the Auditor’s Report (paragraph 25).
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes Auditing Standard ASA 600 Using the Work of Another Auditor as set out in paragraphs 1 to 28, 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