Revised ASAE 3500 Performance Engagements

Wednesday, December 18, 2024

The AUASB has released a revised Standard on Assurance Engagements ASAE 3500 Performance Engagements (ASAE 3500 (Revised)), to address the key findings from the AUASB’s Post Implementation Review of the Standard undertaken in 2023.

ASAE 3500 deals with direct engagements in which an assurance practitioner evaluates a responsible party’s performance of an activity against identified criteria.  The Standard is used primarily by State, Territory or Commonwealth Auditors-General for conducting performance engagements in the public sector; however, may also be used in the private sector.

The revised Standard has been developed in consultation with a Project Advisory Group comprising 9 members representing each public sector audit office in Australia.

Revisions to the Standard include:

• Expanding the scope of the Standard to include requirements and application material for limited assurance engagements.
• Revising the reporting requirements to be clearer and providing additional application material to promote consistent application in practice.
• Using the term ‘significance’ instead of ‘materiality’ in the context of performance engagements, updating relevant requirements, and tailoring application material to assist with application of the concept in practice.