Achieved

· ASA 315 Identifying and Assessing the Risks of Material Misstatement approved February 2020.

· Exposure Draft for ASRS 4400 on Agreed Upon Procedures approved for release in February 2020.

· Conforming amendments to the Australian Auditing Standards resulting from the revised APES 110 Code of Ethics for Professional Accountants approved by the AUASB in June 2020.

Coordinate and develop high quality responses from the AUASB to all IAASB exposure drafts, other IAASB pronouncements and invitations to comment, incorporating relevant feedback from AUASB members and Australian stakeholders.

Achieved

· Submission to the IAASB on Revised Quality Management Standards (ISQM 1, ISQM 2 and ISA 220) completed in July 2020.

· Submission to the IAASB on LCE Discussion Paper sent in September 2019.

· AUASB Exposure Draft for revision of ISA 600 on Group Audits issued in June 2020.

· AUASB submission on IAASB Non Authoritative Guidance for Assurance over Extended External Reporting finalised in June 2020.

· AUASB Technical Staff conducted local outreach on Audit Evidence on behalf of IAASB in March 2020, with response to IAASB on behalf of Australian standard setters and professional bodies provided in April 2020.

Develop and issue implementation support materials and activities for all new IAASB/AUASB standards.

Achieved

· AUASB Bulletin to support the implementation of ASA 540 Auditing Accounting Estimates and Related Disclosures released in December 2019.

· Distributed IAASB guidance materials for Audit Technology and Professional Scepticism via AUASB Website.

· Additional implementation support materials for ASA 540 and ASA 315 to be developed and released in 2020-21 closer to their effective dates and as distributed by the IAASB.

Conduct post-implementation reviews of IAASB equivalent issued AUASB Standards, feeding into the IAASB’s post-implementation review projects as required.

Partly Achieved

· Minimal activity related to Auditor Reporting post implementation review required during year as the AUASB is awaiting the IAASB project to commence in the first half of 2020-21.

Finalise and implement revised AUASB Due Process procedures and documentation for exposing and issuing International Exposure Drafts.

Partly Achieved

· Project to reviev all AUASB Framework Pronouncements and Due Process requirements commenced in second half of 2019-20 and in progress at year end. Work scheduled to be finalised by September 2020.

· Review of the AUASB’s Compelling Reason Test’ being performed in collaboration with the NZAuASB in first half of 2020-21 reporting period.

Develop and issue Australian specific AUASB Standards and Exposure Drafts within one month of AUASB approval, in accordance with AUASB legislative drafting and registration requirements.

Achieved

Update existing AUASB pronouncements, including identifying and revising AUASB Guidance Statements which are out of date or need revision determined by AUASB member and stakeholder feedback.

Partly Achieved

Determine where other AUASB Framework Pronouncements require updating.

Achieved

Conduct post-implementation reviews of Australian specific AUASB Standards, as required.

Not Achieved

· Post Implementation Review of ASAE 3100 Compliance Engagements deferred due to prioritising other issues. Will be completed in 2020-21 reporting period in conjunction with the NZAuASB.

Review and update the 2019-2023 AUASB Strategy and 2019-20 AUASB Technical Work Program based on feedback from AUASB members and key stakeholders and informed by the final 2020-2023 IAASB Strategy.

Achieved

· Updated AUASB 2019-23 Strategy developed by an AUASB subcommittee and approved at the December 2019 AUASB meeting.

· 2019-20 Technical Work Program developed and updated quarterly by the AUASB Technical Staff, incorporating changes made to the IAASB 2019-21 Work Plan in response to the COVID-19 epidemic in the last few months of the reporting period.

Work with the FRC to develop the FRC Audit Quality Plan and implement those elements that are the responsibility of the AUASB.

Achieved

· AUASB involvement in FRC Audit Quality Plan approved by FRC and regularly reported to FRC and AUASB members at each respective meeting.

· AUASB Chair and a dedicated senior manager have supported the FRC on key audit quality issues, including the FRC’s response to the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the Regulation of Auditing in Australia and accounting and auditing issues arising from the COVID-19 epidemic.

· Specific Audit Quality activities delivered under the FRC Audit Quality Plan include a 2019 CFO Survey on Audit Quality and planning for next Audit Committee Chair’s and Investors’ perceptions of Audit Quality Surveys (both of which have been deferred due to the impact of the COVID-19 epidemic).

Monitor developments associated with the Joint Parliamentary Inquiry on the regulation of Auditing, working across the profession to promote audit quality and the AUASB’s role.

Achieved

· AUASB Submission to PJC inquiry issued October 2019 and AUASB Chair gave evidence to the inquiry on 29 November 2019.

· Questions on notice to the AUASB Chair received in December 2019 and responded to in January 2020.

· AUASB reviewed recommendations from Interim Report of the PJC at its March 2020 AUASB meeting.

· AUASB Chair and Senior Manager coordinated with a range of other key stakeholders across the profession (e.g. FRC, APESB) to ensure a collaborative and consistent response to the inquiry across the profession.

· The AUASB collaborated with Academic Scholars to produce background papers on state of Australian auditing and NAS markets to aid evidence-informed decision making in respect of the inquiry’s terms of reference.

Following on from the AUASB LCE Survey work with small and medium audit practitioners to determine implications for Australian Standard Setting.

Partly Achieved

· AUASB Survey on LCE matters received over 130 responses in the first two months of 2019-20. The associated Submission to the IAASB on LCE Discussion Paper was sent in September 2019.

· AUASB Chair led the IAASB LCE Working Group on this topic.

· Additional LCE specific guidance and initiatives to support LCE auditors based on LCE survey outcomes still to be developed in line with developments at the IAASB level.

Monitor developments in public sector auditing and assurance issues by maintaining regular engagement with Auditors-General through the AUASB Public Sector Audit Issues Project Advisory Group (PAG) and the ACAG Auditing Standards Subcommittee.

Partly Achieved

· Development of specific AUASB guidance for public sector auditors on issues raised by the Public Sector Audit Issues PAG is ongoing and has been deferred/delayed by the COVID-19 epidemic.

· AUASB Chair and Technical Director provide ongoing input to FRC subcommittee on Public Sector Reporting and Assurance matters

· There has been specific engagement with representatives from Australian Auditor-Genera offices and the ACAG Auditing Standards Committee on public sector issues arising in IAASB or AUASB Exposure Drafts.

Working with regulators and auditing firms, assess and respond to implementation issues and issue AUASB guidance to address key inspection findings.

Partly Achieved

· The updates to GS005 Using the Work of a Management’s Expert was in direct response to common audit inspection findings identified by the AUASB and a working group from audit firms and professional bodies. The updated Guidance Statement was issued by the AUASB March 2020.

· Development of specific guidance in relation to auditing of revenue and impairment of assets based the most recent ASIC Audit Inspection Report released in December 2019 was due to commence in the second half of 2019-20, but was deferred to 2020-21 as a result of other priorities drived by the AUASB’s response to the COVID-19 epidemic.

Monitor international auditing and assurance developments (including global audit inspection developments and trends) and consider the impact for the Australian auditing and assurance environment.

Achieved

· The AUASB Chair and staff have engaged with relevant IAASB and National Standard Setting (NSS) representatives to monitor international developments on a regular basis, through both formal and informal meetings and forums.

· In particular the AUASB has set up a regular forum with NSS representatives from NZ, Canada and the Netherlands which discuss regulatory and professional developments in each territory.

· The AUASB has been included in an IAASB group of NSS representatives collaborating on auditing and assurance issues arising from the COVID-19 epidemic.

· AUASB Technica Staff have closely monitored the UK audit inquiries, including impact of Brydon Report, as part of its response to the Joint Parliamentary Inquiry of the regulation of Auditing.

Hold regular formal meetings with the professional accounting bodies, other standard setting bodies and regulators to discuss trends in assurance environment and identify the impact on the AUASB Agenda and Technical Work Program.

Achieved

· Throughout the 2019-20 reporting period there has been a consistent and effective dialogue with CPA and CA ANZ representatives, in particular in response to common issues associated with the Parliamentary Inquiry into the Regulation of Auditing and the auditing profession’s response to issues arising from the COVID-1 epidemic.

· Formal meetings with each professional body, to update them on AUASB work program and discuss topical issues are held every 6 months.

· Regular formal and informal meetings have also been held with representatives from ASIC and APESB on common areas of interest, such as the planned revisions to the IAASB’s quality management standards and auditor independence issues.

· The AUASB and AASB Technical Directors meet fortnightly and maintain a register of common projects to enhance collaboration across the two teams and ensure consistent communications with common stakeholders

· A formal Meeting Register capturing when and how often the AUASB Chair or staff meet with key stakeholders is updated for each AUASB meeting.

Support the development of research into the Australian auditing and assurance environment

Achieved

· Two AUASB Academic Scholars were appointed early in the reporting period.

· AUASB Research Report 3 Audit Market Structure and Competition in Australia was issued in October 2019, and AUASB Research Report 4, The Provision of Non-Audit Services by Audit Firms issued in December 2019, authored by AUASB Scholar, Professor Elizabeth Carson from UNSW Sydney.

AUASB to be represented at all IAASB meetings.

Achieved

· The AUASB Chair, who is also a member of the IAASB, and a dedicated AUASB Technical Staff member (who is the AUASB Chair Technical Advisor for IAASB matters) have attended all IAASB meetings and teleconferences held over the course of the 2019-20 reporting period.

· The AUASB Chair also is the Chair of the IAASB’s LCE Working Group and a member of 2 other IAASB Task Forces and has attended a number of other meetings relating to these projects.

· Summaries of each IAASB meeting, and associated actions for the AUASB, are prepared anD presented to the AUASB after each IAASB meeting.

Arrange for AUASB review of relevant IAASB projects at each AUASB meeting and share feedback on key matters with regional IAASB members and relevant IAASB Task Force members before each IAASB meeting.

Achieved

· Relevant IAASB papers are reviewed and board papers prepared by AUASB Technical Staff for each AUASB meeting.

· A summary of key issues the AUASB raise in respect of IAASB matters have been prepared for the AUASB Chair and sent to relevant IAASB members and relevant Task Forces prior to each IAASB meeting.

· All final versions of IAASB standards have been provided to AUASB members for ‘fatal flaw’ reviews to capture feedback prior to being approved by the IAASB at each meeting.

With the IAASB, Canadian AASB and NZAuASB, identify and implement initiatives to drive increased sharing and collaboration across the National Standards Setting (NSS) network, including attending and presenting relevant topics at regional and global IAASB NSS meetings.

Achieved

· With NSS representatives from New Zealand and Canada the AUASB Chair and staff have developed and shared an updated NSS vision and roadmap and gain the support of the new IAASB Chair and key staff.

· Bimonthly meetings have been held with NSS representatives from NZ, Canada and the Netherlands to identify common projects in NSS work programs and act on actions arising from IAASB NSS meetings.

· The AUASB Chair and Technical Director attended IAASB National Standards Setters meeting in May 2020.

· The AUASB hosted a visit of the new IAASB Chair to Australia in March 2020 where a number of associated NSS activities were progressed.

Engage with relevant global standard setters and advisory groups (e.g. IAASB EER Project Advisory Panel, IIRC, GRI and WBCSD) on emerging forms of assurance.

Achieved

· A dedicated AUASB board member has been a member of the IAASB EER Project Advisory Panel overseeing the development of the IAASB’s Non-Authoritative Guidance for Assurance over Extended External Reporting.

· The AUASB Chair is now a correspondent member of the IAASB’s EER Task Force.

· An AUASB EER Assurance Survey was issued in September 2019, and there has been collaboration with other NSS’s (NZ, Canada, Netherlands) on the Survey results and associated linkages with the IAASB’s EER Guidance.

· The IAASB EER Guidance was exposed by the AUASB from March to June 2020 and associated outreach events held with relevant stakeholders in June 2020.

· The AUASB Chair met with a Board member of the IIRC.

AUASB Chair to attend all NZAuASB meetings as a NZAuASB Member.

Achieved

Ensure AUASB Standards are issued in accordance with the principles of harmonisation with New Zealand Standards.

Achieved

· Updated version of ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, developed in collaboration with the NZAuASB was issued as a final standard in June 2020.

· All IAASB equivalent Standards issued in 2019-20 (ASA 315,conforming amendments due to the updated Code of Ethics) were developed in accordance with the common set of principles that each board adheres to under the AUASB/NZAuASB Protocol.

Work collaboratively with NZAuASB Technical Staff to ensure co-operation and co-ordination between the AUASB and NZAuASB’s activities, including on joint AUASB/NZAuASB projects where appropriate.

Achieved

· The AUASB Technical Director visited NZ in October 2019 to meet with NZAuASB Technical Director and NZAuASB Chair and determine appropriate actions for joint Board projects and other NSS matters.

· AUASB and NZAuASB Technical Staff collaborate regularly on several common projects, and this is reflected in the AUASB Technical Work Program.

Undertake strategic thought leadership projects in the following topical or emerging auditing and assurance areas:

· Audit quality

· Assurance over Emerging Forms of External Reporting (EER) and other information in annual reports and other public reports

· Assurance of Financial Reporting Frameworks

· Audit and assurance of Charities and Not foe Profit organisations

· The Value of Audit and reducing the Audit Expectation Gap

· Use of Technology in the Audit, including Data Analytics

Partly Achieved

· There has been regular and ongoing collaboration with the FRC on Audit Quality activities as outlined in the FRC Audit Quality Action Plan, especially in respect of the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the Regulation of Auditing in Australia and accounting and auditing issues arising from the COVID-19 epidemic.

· To aid audit quality an AUASB Technical Staff member has overseen the development of a prototype web standards portal which makes available all AUASB pronouncements online, utilising increased functionality to access and understand auditing and assurance standards. This will be developed as a ‘live’ product available for the profession to access in 2020-21

· The AUASB has conducted an EER Assurance Survey and used it to guide other EER thought leadership activities and engagement with relevant stakeholders.

· AUASB Technical Staff have assisted in developing materials and taking part in AASB outreach events on Reforming the Australian Reporting Framework in October 2019, covering both ‘For profit’ and ‘Not for Profit’ sector reporting. Also, a new AUASB Bulletin on Auditor’s Responsibilities for the Financial Reporting Framework' was issued in July 2019.

· AUASB Chair and AUASB Technical Staff participating in a project to address assurance requirements for small charities being led by the NZAuASB.

· AUASB Board Member and Technical Staff are working on a project to develop specific guidance on the use of Technology in the Audit, including Data Analytics. This is being performed in collaboration with the Canadian national standard setter. Additionally, a new Project Advisory Group for Data Integrity and related audit issues was set up in February 2020.

In accordance with the AUASB Evidence Informed Standard Setting Strategy, support or conduct high quality research in these and other areas relevant to the AUASB’s strategic thought leadership areas.

Achieved

· A new AUASB Research Centre page has been incorporated into the AUASB Website.

· Two AUASB Academic Scholars were appointed early in the reporting period.

· AUASB Research Report 3 Audit Market Structure and Competition in Australia was issued in October 2019, and AUASB Research Report 4, The Provision of Non-Audit Services by Audit Firms issued in December 2019, authored by AUASB scholar, Professor Liz Carson from UNSW Sydney

· Additional AUASB Research Reports (Audit Issues for NFP entities, Audit Opinions and Climate Change) currently under consideration.

Develop and publish articles or publications in selected strategic thought leadership project areas

Achieved

· The AUASB has authored or co-authored, or contributed to, a number of publications addressing accounting and auditing issues arising from the COVID-19 epidemic in the last few months of 2019-20.

· AUASB Chair co-authored an article entitled “Evidence-Informed Approach to Setting Standards: A Discussion on the Research Strategies of AASB and AUASB”, accepted for publication in Australian Accounting Review.

· AUASB Technical Staff are at currently developing an academic journal article on COVID 19 reporting trends for a prominent Australian Accounting journal.

· AUASB Chair featured in CPA Australia’s ‘In the Black’ cover article and interviewed in the CAANZ ‘Acuity’ magazine.

Develop and issue AUASB Publications (e.g. Bulletins, FAQs) to provide guidance to Stakeholders as required on AUASB Pronouncements and topical/emerging auditing and assurance issues and in conjunction with the release of all major AUASB standards and guidance statements.

Achieved

· Bulletin to support the implementation of ASA 540 released in December 2019.

· ‘AUASB Bulletin: Auditor’s Responsibilities for the Financial Reporting Framework’ issued in July 2019. To be updated following AASB’s removal of SPR in March 2020.

· AUASB Bulletin on The Revised Code of Ethics and the Auditor’s Report released in February 2020.

· Numerous online webinars on ASA 540, the AUP Standard and auditing issues arising from the COVID-19 epidemic either hosted by the AUASB or contributed to by AUASB Technical Staff.

Implement and promote the AUASB Evidence Informed Standard Setting (EISS) Strategy.

Achieved

· AUASB Research Centre launched on website.

· AUASB Chair co-authored an article entitled “Evidence-Informed Approach to Setting Standards: A Discussion on the Research Strategies of AASB and AUASB”, accepted for publication in Australian Accounting Review.

· AUASB Senior Project Manager appointed to Deakin University Integrated Reporting Steering Committee.

· AUASB board members and staff planning Joint AUASB/NZAuASB research day on Going Concern Issues in November 2020 with UNSW staff.

AUASB members or staff to attend and present at auditing or assurance related professional and academic events/conferences and regular professional and regulatory forums.

Achieved

· AUASB Chair ans Technical Staff members attended July 2019 AFAANZ conference, with AUASB Chair being a Keynote speaker.

· AUASB Technical Stafd presented at ANCAAR Conference in December 2019.

· AUASB Board Membera and Technical Staff presented at in AALNEC Audit Conference hosted by Deakin University in February 2020

· AUASB Technical Staff and board member presented at CA ANZ Audit Conferences in April 2020.

Obtain feedback from FRC members on AUASB activities.

Achieved

· AUASB Chair Update and AUASB Performance Report presented at each FRC meeting

· AUASB Technical Staff assisted with FRC response to PJC Inquiry into the regulation of Auditing.

· AUASB Technical Staff assisted in development of FRC papers on Public Sector Financial Report reform and Nominations Committee.

· AUASB Chair and Technical Director members of FRC subcommittee on Public Sector Financial Reporting.

Develop and distribute a quarterly AUASB Update publication.

Achieved

· AUASB Newsletters for 2019-20 issued quarterly, with a COVID-19 special edition also released in May 2020 to promote the AUASB’s Guidance and FAQs developed in response to the COVID-19 epidemic.

Conduct a regular AUASB Stakeholder Satisfaction Survey and respond to results and implement initiatives to support and grow stakeholder engagement (measured via increased media mentions, social media activity and level of participation at AUASB events).

Partly Achieved

· Results from the 2018-2019 AUASB Stakeholder Satisfaction Survey still being evaluated, and development of a more streamlined stakeholder database in process for invitations to AUASB events and next Stakeholder Satisfaction Survey.

· AUASB Technical Staff working with AASB-AUASB Communication Manager to develop updated AUASB Communication Strategy (being developed in collaboration with the AASB).

· AUASB’s successful migration of external stakeholder meetings and roundtables to online platforms (e.g Zoom) in response to physical distancing requirements associated with the COVID-19 epidemic has permitted greater attendance at such events.

· Working with the AASB-AUASB Communication Manager, the AUASB has increased its social media presence in 2019-20, posting all news items and announcements via Twitter and LinkedIn.

· An AUASB Technical Staff member has overseen the development a prototype web standards portal which makes available all AUASB pronouncements online utilising increased functionality to access and understand auditing and assurance standards. This will be developed as a ‘live’ product available for the profession to access in 2020-21.