2 May 2006 
 
The Institute of Chartered Accountants has today issued a warning to Australian auditors reminding them than the force of law standards will apply in Australia for financial periods commencing as from 1July 2006 (ie generally 30 June 2007 year ends).  
 
The Institute’s warning follows the release of Force of Law Auditing Standards, which were issued by the Australian Auditing & Assurance Standards Board (AUASB) on Monday 1st May 2006.  
 
The Standards were completed, after extensive public consultation, and will provide Australia with an internationally comparable set of standards.  
 
The Institute supports the 35 new Standards, which they believe do not radically change the existing Auditing Standards except that they will be legally enforceable under the Corporations Act, whereas the current Standards are enforceable by the Accounting Bodies.  
 
The Force of Law Auditing Standards will apply to audits under the Corporations Act and audits of a financial report for any other purpose. The new Standards are also a requirement of the Accounting Bodies.  
 
The Institute’s Technical Standards Adviser, Keith Reilly said, “the quality of Australian audits is currently very high and business can continue to expect high standards. What the new standards will provide is a consistent language for businesses being audited, both within Australia and overseas”.  
 
“The new Force of Law Auditing Standards are essentially in conformity with International Auditing Standards (IASs), which continue to be issued by the International Auditing & Assurance Standards Board,” he said.  
 
Further information regards the Force of Law Standards is available from the Australian Auditing & Assurance Standards Board at www.auasb.gov.au