As part of the clarity project, the Auditing and Assurance Standards Board (AUASB) has released the first exposure drafts for a revised set of Australian Auditing Standards (ASAs). A new standard on assurance engagements, ASAE 3500 Performance engagements, operative in 2009, has also been issued.

AUASB clarity project

The AUASB has released the first four exposure drafts for a revised set of ASAs, which will become operative from 2010. Australian auditors will need to comply with the revised ASAs.

In line with the strategic direction provided by the the Financial Reporting Council, these standards are being revised in a clarity format and will conform to the revised International Standards on Auditing (ISAs). The aim of revising standards in a clarity format is to ensure a clear and consistent application of international standards globally.

Revised ASAs will not be issued until all redrafted standards are approved. This is expected to occur in October 2009.

The first four exposure drafts (ASA 240, ASA 260, ASA 315 and ASA 330) were released on 31 July, with an exposure period of 30 days. The AUASB indicated that while there are some changes from existing ASAs they are not significant.

For further information download the CPA Australia's Joint submission on the first four clarity format auditing standards exposure drafts.

Performance engagements ASAE 3500

The AUASB has released a new standard on assurance engagements, ASAE 3500 Performance engagements, which will be used primarily on public sector assurance engagements where the performance of an entity's activities is examined (and which replace AUS 806 and AUS 808). 

These engagements assess performance against established benchmarks, such as the adequacy of internal controls, the extent to which resources have been managed economically or efficiently, and the extent to which the activities have been effective. 

The standard will become operative for engagements commencing 1 January 2009.

For further information visit the AUASB website.