With the financial year-end fast approaching, the Institute is providing auditors with timely guidance to assist them their professional responsibilities. 
 
The findings reported earlier this year from the Institute’s quality reviews suggest that, while most audit conclusions appear to be sound, some files do not always contain sufficient audit evidence - documented thoroughly - as per the Australian Auditing Standards.  
 
The Institute considers any breach of these standards as serious, as do the regulators (including the Australian Securities & Investments Commission and the Australian Taxation Office) and the standards setters (the Australian Auditing & Assurance Standards Board and the Accounting Professional & Ethical Standards Board).  
 
Members are reminded that penalties can apply for non-compliance and that auditing standards are legally enforceable for any Corporations Act audit.  
 
The Institute's Head of Audit, Andrew Stringer, points out that auditing is an advanced, technical skill, 'Members should not offer and undertake audit services unless they are committed and equipped to meet auditing standards,' he said. 'The auditing standards issued by the AUASB must be applied to all audits, regardless of their size. That said, auditing has seen unprecedented regulatory change in recent years, and the Institute understands the challenges that members face. This is why a range of member guidance is available.'  
 
Member guidance  
To assist with appropriate documentation of all audit procedures, the Institute has produced an Audit Manual and a supplementary Audit Toolkit. Additionally, the Institute assisted the AUASB in developing significant guidance for self-managed superannuation fund audits.  
 
Quality reviews have identified other areas of non-compliance. These include quality control issues and members completing the prescribed level of training and development activities. Guidance is available in the form of a Quality Control Guide and the training & development requirements web page. 
 
Members should view this summary of non-compliance issues, reported earlier this year, to ensure that matters identified in quality reviews are addressed.  
 
Comment on this article 
Members can email the Institute with comments on this article here. 
 
Relevant links:

• The Institute: Quality Review web page
• The Institute: training & development requirements.