The Auditing and Assurance Standards Board (AUASB) met in Melbourne on Monday and Tuesday 27 and 28 October.

• Revising and Redrafting of Standards in connection with the Clarity Project –  
  The Board considered feedback received in connection with exposure drafts of the first four standards for which the comment period has now passed. These standards have been cleared for final approval, subject to some minor further amendments. They are to be held pending completion of the Clarity Project and any consequential amendments that may arise out of changes to other standards. All revised and redrafted standards are expected to be issued at the same time, in accordance with the Board’s published timetable for this project, in time for implementation for the audits of financial periods beginning on or after 1 January 2010. These four standards are:
  • ASA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report
   
  
  • ASA 260 Communication with Those Charged with Governance
   
  
  • ASA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and its Environment
   
  
  • ASA 330
  • The Auditor’s Procedures in Response to Assessed Risks
  The Board considered and approved for release as exposure drafts in ‘clarity’ format (subject to some minor amendments) the following –
  • ASA 200 Objective and General Principles Governing an Audit of a Financial Report
   
  
  • ASA 250 Considerations of Laws and Regulations in an Audit of a Financial Report
   
  
  • ASA 320 Materiality and Audit Adjustments
   
  
  • ASA 450 Evaluation of Misstatements Identified During the Audit
   
  
  • ASA 510 Initial Engagements – Opening Balances
   
  
  • ASA 550 Related Parties
   
  
  • ASA 580 Written Representations
   
  
  • ASA 720 Other Information in Documents Containing Audited Financial Reports
  A preamble to the revised and redrafted Standards appears on the AUASB website as a work-in-progress document. The document will be revised progressively and will eventually be transformed into an Exposure Draft.  
  
• The Board received an update on proposed Guidance Statement GS 009 Auditing Self Managed Superannuation Funds, which is expected to be issued within the next two weeks.
 

• The Board considered amendments to GS 001 Concise Financial Reports to clarify certain matters and to more closely align the terminology with AASB 101 Presentation of Financial Statements and AASB 8 Operating Segments. The changes were approved, subject to inclusion in the illustrative auditor’s reports set out in GS 001, of disclosures in relation to the Remuneration Report.
 

• Discussions with the Department of Climate Change are continuing in relation to emissions reporting under the National Greenhouse and Energy Reporting (NGER) System and the proposed Carbon Pollution Reduction Scheme (CPRS). The Board expects to make a submission in connection with the External Audit Consultation Paper which has been issued by the Department of Climate Change.
 

• The Board discussed the format of the proposed consultative meeting with stakeholders, due to be held on 2 December 2008.
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• The Board discussed the need to update the existing AUS 904 Engagements to Perform Agreed-upon Procedures. A project plan is to be developed for consideration at the next meeting.
 

• The Board approved minor editorial changes to ASAE 3500 Performance Engagements.