Auditing Standard ASA 101 Preamble to AUASB Standards
Compliance and EnforcementCompliance and Enforcement
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Compliance and Enforcement
A7. AUASB Standards are not legally binding in all contexts. However:
- Standards made and issued under section 336 of the Corporations Act for the purposes of the corporations legislation have the status of law.[21] Where engagements covered by these standards are undertaken for the purposes of complying with the Corporations Act, full compliance is required as a matter of law. [22]
- Auditing and assurance standards may also be issued or used for other purposes. Where auditing and assurance standards are used for purposes other than complying with the Corporations Act, compliance with those standards may not be required as a matter of law. However, there are circumstances in which compliance is required by other legislation, regulatory or contractual arrangements.
A8. Auditing Standards issued by the AUASB under the Corporations Act, are legally enforceable by the Australian regulator – the Australian Securities and Investments Commission (ASIC). ASIC conducts regular inspection programmes as an integral part of its enforcement responsibilities.
A9. Through the standards issued by the Accounting Professional & Ethical Standards Board (APESB), members of the Australian Professional Accounting Bodies are compelled to comply with the requirements of AUASB Standards.[23]
A10. Member compliance is enforced through the inspection programmes of the Professional Accounting Bodies, which are also responsible for member disciplinary action.