Current Priorities & KPIs
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.
· 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.
· 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.
· 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.
· 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.
· 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.
· 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.
· 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.
· 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
· 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.