Authority of this Auditing StandardAuthority of this Auditing Standard

Authority of this Auditing Standard

1. [Deleted by the AUASB. Refer Aus 4.1]

Aus 4.1 This Standard applies to all firms of assurance practitioners in respect of audits and reviews of financial reports and other financial information, other assurance engagements and related services engagements. The nature and extent of the policies and procedures developed by an individual firm to comply with this Standard will depend on various factors such as the size and operating characteristics of the firm, and whether it is part of a network.

Aus 4.2 The requirements of this Standard apply to a firm, not to the individual auditor(s) within the firm.

1. This Standard contains the objective of the firm in following this Standard, and requirements designed to enable the firm to meet that stated objective. In addition, it contains related guidance in the form of application and other explanatory material, as discussed further in paragraph 8 of this Standard, and introductory material that provides context relevant to a proper understanding of this Standard, and definitions.
2. The objective provides the context in which the requirements of this Standard are set, and is intended to assist the firm in:

• Understanding what needs to be accomplished; and
• Deciding whether more needs to be done to achieve the objective.

1. The requirements of this Standard are expressed using “shall.”
2. Where necessary, the application and other explanatory material provides further explanation of the requirements and guidance for carrying them out. In particular, it may:

• Explain more precisely what a requirement means or is intended to cover; and
• Include examples of policies and procedures that may be appropriate in the circumstances.

While such guidance does not in itself impose a requirement, it is relevant to the proper application of the requirements. The application and other explanatory material may also provide background information on matters addressed in this Standard. Where appropriate, additional considerations specific to public sector audit organisations or smaller firms are included within the application and other explanatory material. These additional considerations assist in the application of the requirements in this Standard. They do not, however, limit or reduce the responsibility of the firm to apply and comply with the requirements in this Standard.

1. This Standard includes, under the heading “Definitions,” a description of the meanings attributed to certain terms for purposes of this Standard. These are provided to assist in the consistent application and interpretation of this Standard, and are not intended to override definitions that may be established for other purposes, whether in law, regulation or otherwise. The AUASB Glossary relating to AUASB Standards, and issued by the AUASB includes the terms defined in this Standard. It also includes descriptions of other terms found in this Standard to assist in common and consistent interpretation and translation.