Explanatory Material (Ref: Para. 13)Explanatory Material (Ref: Para. 13)

Explanatory Material (Ref: Para. 13)

Conformity with International Standards (Ref: Para. 13(a))

A45. The Conformity paragraphs explain the relationship of an AUASB Standard with its equivalent international standard issued by the IAASB. An AUASB Standard conforms to the equivalent international standard when:

(a) the requirements of the AUASB Standard correspond with those in the equivalent international standard or the AUASB Standard contains additional requirements; and
(b) the explanatory material is substantially the same as the equivalent international standard or the AUASB Standard contains additional explanatory material.

A46. The Conformity paragraphs in AUASB Standards include necessary differences from the equivalent international standard relating to terminology, referencing and Australian regulatory requirements.[37]

A47. When an AUASB Standard and the equivalent international standard conform, the Conformity paragraphs contain a statement to this effect.

A48. When an AUASB Standard and the equivalent international standard are not equivalent, the Conformity paragraphs detail the main differences.

A49. The Conformity paragraphs in each AUASB Standard assist the assurance practitioner to determine to what extent (if any) compliance with AUASB Standards might enable also the engagement to be conducted in compliance with international standards. It is the responsibility of the assurance practitioner to determine which standards apply to the particular engagement and circumstances. Furthermore, where appropriate, the Conformity paragraphs contain the following sentence:

“Compliance with this Standard enables compliance with the equivalent international standard”.

Introduction (Ref: Para. 13(c))

A50. Introductory material provides context relevant to a proper understanding of an AUASB Standard. Introductory material may include, as needed, such matters as explanation of the:

• purpose and scope of the Standard, including how the Standard relates to other AUASB Standards;
• subject matter of the Standard; and
• respective responsibilities of the assurance practitioner and others in relation to the subject matter of the Standard.

Application and Other Explanatory Material (Ref: Para. 13(d))

A51. Included within the requirements section of a standard are references to paragraphs in the “Application and Other Explanatory Material” section of the standard. Such references do not extend or create requirements.

A52. Where necessary, the application and other explanatory material provides further explanation of the requirements and guidance for carrying the requirements out. In particular, it may: