12 Jun. 2015
AUASB invites comments on Exposure Draft 02/15 – the auditor’s responsibilities relating to other information included in an entity’s annual report
The Australian Auditing and Assurance Standards Board (AUASB) today issue a proposal to revise the existing Australian Auditing Standard ASA 720 The Auditor’s Responsibilities Related to Other Information in Documents Containing an Audited Financial Report. This proposed Standard, which has been re-titled ASA 720 The Auditor’s Responsibilities Related to Other Information, deals with the auditor’s responsibilities relating to other information included in an entity’s annual report and its revision is part of the AUASB’s project on enhanced auditor reporting.
The proposed revisions align to recent changes made by the International Auditing and Assurance Standards Board (IAASB) to its equivalent International Standard on Auditing and are related to the enhanced auditor reporting changes already announced. The Exposure Draft also contains a number of related conforming amendments proposed to other Auditing Standards.
The revisions proposed seek to enhance the value of the audit without changing its scope, improve the transparency of the auditor’s responsibilities in this area by requiring auditors to articulate in the auditor’s report their responsibilities under the standard and the outcome of their work relative to the other information.
Key enhancements for all audits include:
- Broadening and clarifying the scope of other information to be the “annual report”.
- Clarifying and enhancing the auditor’s work effort on the other information.
- Retention of the key existing concept that the auditor does not audit the other information and that consequently no assurance is expressed on the other information.
- Requires an Other Information section to be included in the auditor’s report in certain circumstances.
The implementation of the revisions, which are related to the proposed new and revised auditor reporting standards already issued on exposure in ED 01/15, is not expected to represent a significant change in current audit practices.
Consistent with the equivalent ISAs, ASA 720 and related conforming amendments will be effective for audits of financial statements for periods ending on or after 15 December 2016.
Please forward any comments on ED 02/15 to email@example.com by no later than 10 August 2015.