Mandatory Components (Ref: Para. 12)Mandatory Components (Ref: Para. 12)

Mandatory Components (Ref: Para. 12)

“Application” Paragraphs (Ref: Para. 12(a), 13(b))

A28. Each AUASB Standard contains a mandatory “Application” paragraph. The standard may also include an additional “Application” paragraph that forms part of the explanatory material of the standard, to describe other engagements the standard may be applied to, adapted as necessary.

A29. The “Application” paragraph or paragraphs of a standard identify the scope of the standard.

Engagements under the Corporations Act

A30. Auditing Standards made under section 336 of the Corporations Act[30] contain a mandatory “Application” paragraph (shown as paragraph “Aus 0.1”) relating to:

(a) an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act; and

(b) an audit of a financial report, or a complete set of financial statements, for any other purpose.

A31. The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act applies specifically to:

(a) an audit or a review conducted under Part 2M.3 of the Act; and

(b) an audit conducted under Part 7.8 of the Act.

A32. Auditing Standards may also include an additional “Application” paragraph (shown as paragraph “Aus 0.2”) that forms part of the explanatory material of the standard to explain that, although the Auditing Standards are written mainly in the context of an audit of a financial report, they apply also, adapted as necessary, to the audit of other historical financial information.

Operative Date (Ref: Para. 12(b))

A33. The operative date stipulates the date from which the AUASB Standard is to be applied. For audits or reviews of financial reports, the operative date is stated in relation to a financial reporting period. The requirements of an AUASB Standard remain in force until:

(a) the operative date of any amendment to those requirements (Ref: Para. A22-A25));

(b) in relevant circumstances, the early adoption of such amendments; or

(c) the AUASB Standard is withdrawn by the AUASB.

A34. Unless otherwise stated in an AUASB Standard, the assurance practitioner is permitted to apply a standard before the operative date specified therein. Where an AUASB Standard is early adopted, all relevant conforming and consequential amendments must also be early adopted.

A35. Where an assurance practitioner is conducting an audit of a financial report and elects to early adopt an auditing standard made under section 336 of the Corporations Act, in accordance with section 336(4), that election must be recorded in the audit report.