2 Jul. 2015
AUASB issues a new Guidance Statement – GS 022 Grant Acquittals and Multi-Scope Engagements
The AUASB recognises that a single-subject grant acquittal and a multi-scope engagement may give rise to a number of practical application issues, including:
- Determining which AUASB Standards and requirements are relevant and how to apply them;
- Planning and performing these types of engagements effectively and efficiently to address multiple objectives, including multiple subject matters and different levels of assurance;
- Reporting appropriately in accordance with AUASB Standards and engagement mandates, especially when the auditor seeks to issue a single tailored auditor’s report;
- Demands for the use of prescribed auditor’s reports; and
- Engagements that require both assurance and agreed-upon procedures.
The Guidance Statement, GS 022, is centred on a selection of 13 common practical issues, such as setting different levels of materiality to address different subject matters that comprise a multi-scope engagement. Each issue is presented with a number of suggestions on how an auditor might deal with the issue.
The Guidance Statement includes numerous references to AUASB Standards that illustrate requirements and principles that can be applied in the circumstances of the engagement and particular issue.
The Guidance Statement contains 10 appendices which include illustrative engagement letters, representation letters and auditor’s reports.