Chartered Accountants Auditing and Assurance Handbook 2013

<p>Foreword v</p>
<p>About the Technical Editor vi</p>
<p>Introduction xii</p>
<p>About the Institute of Chartered Accountants Australia xv</p>
<p>Overview xvi</p>
<p>Understanding Financial Statement Audits: A Guide for Financial Statement Users 1</p>
<p>AUASB Framework and Policy Documents</p>
<p>Foreword to AUASB Pronouncements 30</p>
<p>AUASB Glossary 37</p>
<p>Framework for Assurance Engagements 60</p>
<p>Principles of Convergence to International Standards of the International Auditing and Assurance Standards Board (IAASB) and Harmonisation with the Standards</p>
<p>of the New Zealand Auditing and Assurance Standards Board (NZAuASB) 80</p>
<p>Australian Accounting Standards (ASAs)</p>
<p>Introduction</p>
<p>ASQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, and Other Assurance Engagements 85</p>
<p>ASA 100 Preamble to AUASB Standards 113</p>
<p>ASA 101 Preamble to Australian Auditing Standards 122</p>
<p>ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements 128</p>
<p>Responsibilities</p>
<p>ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards 135</p>
<p>ASA 210 Agreeing the Terms of Audit Engagements 160</p>
<p>ASA 220 Quality Control for an Audit of a Financial Report and Other Historical Financial Information 178</p>
<p>ASA 230 Audit Documentation 194</p>
<p>ASA 240 The Auditor s Responsibilities Relating to Fraud in an Audit of a Financial Report 206</p>
<p>ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report 240</p>
<p>ASA 260 Communication with Those Charged with Governance 252</p>
<p>ASA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management 270</p>
<p>Planning</p>
<p>ASA 300 Planning an Audit of a Financial Report 280</p>
<p>ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment 291</p>
<p>ASA 320 Materiality in Planning and Performing an Audit 327</p>
<p>ASA 330 The Auditor s Responses to Assessed Risks 336</p>
<p>Internal control</p>
<p>ASA 402 Audit Considerations Relating to an Entity Using a Service Organisation 354</p>
<p>ASA 450 Evaluation of Misstatements Identified during the Audit 372</p>
<p>ASA 500 Audit Evidence 382</p>
<p>ASA 501 Audit Evidence Specific Considerations for Inventory and Segment Information 396</p>
<p>ASA 502 Audit Evidence Specific Considerations for Litigation and Claims 405</p>
<p>ASA 505 External Confirmations 417</p>
<p>ASA 510 Initial Audit Engagements Opening Balances 427</p>
<p>Explanatory Guide: Opening Balances 439</p>
<p>ASA 520 Analytical Procedures 455</p>
<p>ASA 530 Audit Sampling 463</p>
<p>ASA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures 475</p>
<p>ASA 550 Related Parties 508</p>
<p>ASA 560 Subsequent Events 530</p>
<p>ASA 570 Going Concern 541</p>
<p>ASA 580 Written Representations 566</p>
<p>Using the work of others</p>
<p>ASA 600 Special Considerations Audits of a Group Financial Report (Including the Work of Component Auditors) 580</p>
<p>ASA 610 Using the Work of Internal Auditors 617</p>
<p>ASA 620 Using the Work of an Auditor s Expert 627</p>
<p>Audit conclusions and Reporting</p>
<p>Explanatory Guide: Auditor s Reports 642</p>
<p>ASA 700 Forming an Opinion and Reporting on a Financial Report 656</p>
<p>ASA 705 Modifications to the Opinion in the Independent Auditor s Report 686</p>
<p>ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor s Report 709</p>
<p>ASA 710 Comparative Information Corresponding Figures and Comparative Financial Reports 724</p>
<p>ASA 720 The Auditor s Responsibilities Relating to Other Information in Documents Containing an Audited Financial Report 744</p>
<p>Specialised Areas</p>
<p>ASA 800 Special Considerations Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks 751</p>
<p>ASA 805 Special Considerations Audits of Single Financial Statementsand Specific Elements, Accounts or Items of a Financial Statement 768</p>
<p>ASA 810 Engagements to Report on Summary Financial Statements 783</p>
<p>Standards on Review Engagements (ASRes)</p>
<p>Explanatory Guide to AUASB Standards Applicable to Review Engagements 803</p>
<p>ASRE 2400 Review of a Financial Report Performed by an Assurance Practitioner Who is Not the Auditor of the Entity 810</p>
<p>ASRE 2405 Review of Historical Financial Information Other than a Financial Report 852</p>
<p>ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity 881</p>
<p>ASRE 2415 Review of a Financial Report Company Limited by Guarantee 929</p>
<p>Standards on Assurance Engagements (ASAEs)</p>
<p>ASAE 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information 936</p>
<p>ASAE 3100 Compliance Engagements 958</p>
<p>ASAE 3402 Assurance Reports on Controls at a Service Organisation 977</p>
<p>ASAE 3410 Assurance Engagements on Greenhouse Gas Statements 1023</p>
<p>ASAE 3420 Assurance Engagements to Report on the Compilation of Pro Forma Historical Financial Information included in a Prospectus or other Document 1084</p>
<p>ASAE 3450 Assurance Engagements involving Corporate Fundraisings and/or Prospective Financial Information 1121</p>
<p>ASAE 3500 Performance Engagements 1214</p>
<p>Standards on Related Services (ASRSs)</p>
<p>ASRS 4400 Agreed–Upon Procedures Engagements to Report Factual Findings 1233</p>
<p>ASRS 4450 Comfort Letter Engagements 1255</p>
<p>Auditing and Assurance Standards (AUSs)</p>
<p>AUS 804 The Audit of Prospective Financial Information 1292</p>
<p>AUS 810 Special Purpose Reports on the Effectiveness of Control Procedures 1305</p>
<p>Auditing and Assurance Guidance Statements (AGSs)</p>
<p>AGS 1014 Privity Letter Requests 1327</p>
<p>AGS 1062 Reporting in Connection with Proposed Fundraisings 1336</p>
<p>Guidance Statements (GSs)</p>
<p>GS 001 Concise Financial Reports Under the Corporations Act 2001 1368</p>
<p>GS 002 Special Considerations in the Audit of Risk Management</p>
<p>Requirements for Registrable Superannuation Entities and Licensees 1387</p>
<p>GS 003 Audit and Review Requirements for Australian Financial Services Licensees under the Corporations Act 2001 1403</p>
<p>GS 004 Audit Implications of Prudential Reporting Requirements for General Insurers 1428</p>
<p>GS 005 Using the Work of an Actuary 1457</p>
<p>GS 006 Electronic Publication of the Auditor s Report 1463</p>
<p>GS 007 Audit Implications of the Use of Service Organisations for Investment Management Services 1470</p>
<p>GS 008 The Auditor s Report on a Remuneration Report under</p>
<p>Section 300A of the Corporations Act 2001 1520</p>
<p>GS 009 Auditing Self–Managed Superannuation Funds 1528</p>
<p>GS 010 Responding to Questions at an Annual General Meeting 1629</p>
<p>GS 011 Third Party Access to Audit Working Papers 1637</p>
<p>GS 012 Prudential Reporting Requirements for Auditors of Authorised Deposit–taking Institutions 1662</p>
<p>GS 013 Special Considerations in the Audit of Compliance Plans of Managed Investment Schemes 1712</p>
<p>GS 014 Auditing Mortgage Schemes 1727</p>
<p>GS 015 Audit Implications of Accounting for Investments in Associates 1733</p>
<p>GS 016 Bank Confirmation Requests 1741</p>
<p>GS 017 Prudential Reporting Requirements for Auditors of a Life Company 1763</p>
<p>GS 018 Franchising Code of Conduct Auditor s Reports 1793</p>
<p>GS 019 Auditing Fundraising Revenue of Not–for–Profit Entities 1800</p>
<p>GS 020 Special Considerations in Auditing Financial Instruments 1817</p>
<p>Accounting Professional and Ethical Standards Board Statements (APES)</p>
<p>APES 110 Code of Ethics for Professional Accountants 1861</p>
<p>APES 205 Conformity with Accounting Standards 1958</p>
<p>APES 210 Conformity with Auditing and Assurance Standards 1963</p>
<p>APES 215 Forensic Accounting Services 1967</p>
<p>APES 220 Taxation Services 1976</p>
<p>APES 225 Valuation Services 1984</p>
<p>APES 305 Terms of Engagement 1999</p>
<p>APES 310 Dealing with Client Monies 2004</p>
<p>APES 315 Compilation of Financial Information 2015</p>
<p>APES 320 Quality Control for Firms 2027</p>
<p>APES 320 APESB Technical Update 2053</p>
<p>APES 325 Risk Management for Firms 2054</p>
<p>APES 330 Insolvency Services 2059</p>
<p>APES 345 Reporting on Prospective Financial Information Prepared in connection with a Disclosure Document 2075</p>
<p>APES 350 Participation by Members in Public Practice in Due Diligence Committees in connection with a Public Document 2083</p>
<p>APES GN 40 Members in Business Guidance Note Ethical Conflicts in the Workplace Considerations for Members in Business 2105</p>
<p>Miscellaneous Professional Statements</p>
<p>APS 12 Statement of Financial Advisory Service Standards 2142</p>