The likely impacts of the new auditing standards are explained with the release of free online fact sheets by CPA Australia.

The fact sheets are targeted at business and information users such as investors. They may also be a useful resource for auditors in discussing the new standards with their clients.

Members of CPA Australia should be aware that the new auditing standards apply to audits of 2006/2007 full year financial reports of companies as well as many other organisations in Australia such as sports groups and local schools along with not-for-profit organisations such as community groups and charities.

‘Boards of smaller organisations often include voluntary directors and treasurers – it’s vital these individuals understand and plan for the impact of the new standards on the audit,’ says Jessie Wong, CPA Australia’s policy adviser audit and assurance.

Directors, managers and others with governance responsibilities may see some changes to the audit process, including greater demands on directors’ and staff time. They should also be prepared for changes to the terminology of the auditor’s opinion.

‘Auditors have been preparing for the new standards for over 12 months, the next major step is ensuring the new terminology and audit processes are understood by those managing and investing in the business,’ says Ms Wong.

CPA Australia is urging management and those with governance responsibilities including audit committee members to use the new audit fact sheets as a basis for discussing expected changes with their auditor. 

'The new auditing standards may simply formalise the prudent operating procedures and processes auditors and their teams already have in place, so business may see few changes to the conduct of their audit – but organisations should not assume this. The fact sheets provide a starting point for this discussion,' says Ms Wong.

The new standards apply to all audits conducted under the Corporations Act audits as well as audits undertaken by members of CPA Australia of Australian based organisations such as sports groups and local schools as well as not-for-profit organisations such as community groups and charities.

Australian Auditing Standards – fact sheets

To download the fact sheets, please visit the links below.

For audit practitioners

• Overview of AUASB Standards and other pronouncements
• ASA 100 Preamble to AUASB Standards
• ASA 200 Objective and General Principles Governing an Audit of a Financial Report
• ASA 230 Audit Documentation
• ASA 260 Communication of Audit Matters with Those Charged With Governance
• ASA 300 Planning an Audit of a Financial Report
• ASA 500 Audit Evidence
• ASA 550 Related Parties
• ASA 700 The Auditor’s Report on a General Purpose Financial Report
• ASA 701 Modifications to the Auditor’s Report
• ASA 800 The Auditor’s Report on Special Purpose Audit Engagements
• ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity

The full set of Australian Auditing Standards fact sheets for audit practitioners are also available to download and print.

For management, directors and audit committee members

• Overview of AUASB standards and other pronouncements
• ASA 100 Preamble to AUASB Standards
• ASA 200 Objective and General Principles Governing an Audit of a Financial Report
• ASA 260 Communication of Audit Matters with Those Charged With Governance
• ASA 550 Related Parties
• ASA 560 Subsequent Events
• ASA 570 Going Concern
• ASA 580 Management Representations
• ASA 700 The Auditor’s Report on a General Purpose Financial Report
• ASA 701 Modifications to the Auditor's Report
• ASA 800 The Auditor’s Report on Special Purpose Audit Engagements
• ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity

The full set of Australian Auditing Standards fact sheets for management, directors and audit committee members are also available to download and print.

Further information

• view CPA Australia’s media release: CPA Australia helps businesses and auditors prepare for new audit approach
• access more resources about Australian Auditing Standards