Reasons for Issuing Auditing Standard ASReasons for Issuing Auditing Standard ASA 720 The Auditor's Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report

Reasons for Issuing Auditing Standard ASA 720 The Auditor's Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report

The Auditing and Assurance Standards Board (AUASB) issues Auditing Standard ASA 720 The Auditor's Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.

The AUASB is an independent statutory board of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Australian Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislative Instruments Act 2003.

Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required to have regard to any programme initiated by the International Auditing and Assurance Standards Board (IAASB) for the revision and enhancement of the International Standards on Auditing (ISAs) and to make appropriate consequential amendments to the Australian Auditing Standards. Accordingly, the AUASB has decided to revise and redraft the Australian Auditing Standards using the equivalent redrafted ISAs.