A total of 3737 breaches were reported in 2012 through CPA Australia's Quality Review Program. 65 per cent were non-audit related breaches and 35 per cent were audit related breaches. CPA Australia has compiled a list of the top 10 breaches for each category. Public practice members are encouraged to use this information to aid their own investigations regarding their compliance with the professional standards, regulatory requirements and legislative requirements as applied to engagements being performed.
Top ten audit breaches
Graph: Top 10 audit breaches in 2012.
- ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment
- Superannuation Industry (Supervision) Act 1993
- ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards
- ASA 300 Planning an Audit of a Financial Report
- ASA 230 Audit Documentation
- ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report
- ASA 330 Auditor's Responses to Assessed Risks
- ASA 580 Written Representations
- ASAE 3100 Compliance Engagements
- ASA 320 Materiality in Planning and Performing an Audit
Top ten non-audit breaches
Graph: Top ten non-audit breaches in 2012.
- APES 315 Compilation of Financial Information
- APES 220 Taxation Services
- APES 305 Terms of Engagement
- APES 320 Quality Control for Firms
- APES 110 Code of Ethics for Professional Accountants
- APES 205 Conformity with Accounting Standards
- RMS 1 Risk Management Statement (superseded by APES 325 Risk Management for Firms as at 1 Jan 2013)
- Corporations Act 2001 section 347A Solvency Declaration
- CPA Australia By-Law 4 Continuing Professional Development
- APES 310 Dealing with Client Monies