The Auditing and Assurance Standards Board (AUASB) has issued a reminder to all auditors that the new Australian auditing standards apply for reporting periods starting 1 July 2006 or later.
The auditing standards have the force of law for statutory audits and reviews conducted under the Corporations Act 2001.
Additionally, the auditing standards are to be applied to all other financial report audits in accordance with APES 410 Conformity with auditing and assurance standards by auditors who are members of the professional accounting bodies in Australia.
A research report, released by the AUASB in April 2007, indicated most auditors from small accounting practices were aware that the new auditing standards are legally enforceable.
The survey conducted of small accounting practices also highlighted that while many auditors were aware that new auditing standards were being introduced:
- 62 per cent were aware but did not understand all the detail
- 54 per cent were unaware of the new auditing standards or only had partial understanding.
It is essential that auditors of small organisations, such as not-for-profits, incorporated associations, proprietary companies, and the fast-growing SMSF sector, understand the requirements of the new auditing standards and apply them appropriately to ensure they meet their legal and professional obligations, which include the ethical and quality assurance requirements of the professional accounting bodies.
Further information
