Audit and assurance
Content Summary
Auditor registration
Licensing requirements and regulations for auditors
Financial report audit resources
Resources, guidance and research on financial report audit practices
Auditing small and medium entities
Resources to help auditors understand the needs of smaller clients
Self-managed super fund auditors
A range of articles, podcasts, guides and manuals for SMSF auditors
Auditor independence and rotation
Guides, resources and regulations for auditor rotation and independence
Non-financial information assurance
There are five broad categories of non-financial report assurance
Applying the auditing competency standard
Answers to frequently asked questions about the auditing competency standard
Joint Accounting Bodies release service organisation guidance for SMSF auditors
CPA Australia, Chartered Accountants Australia and New Zealand and the Institute of Public Accountants (“the Joint Accounting Bodies”) have jointly issued guidance for self-managed superannuation fund (SMSF) auditors on SMSFs using investment management service organisations. In the form of frequently asked questions (FAQs), the guidance aims to provide some simple, concise signposting by bringing together relevant paragraphs of the applicable auditing and assurance standards, and guidance statements.
It is in response to questions that members have asked the Joint Accounting Bodies in relation to auditing SMSF financial reports where the SMSF outsources the management of its investments to a service organisation. The guide emphasises that it is possible to obtain sufficient appropriate audit evidence, but there is no one-size-fits-all approach, and the outcome is not binary. As with all audits, the nature, timing and extent of audit procedures are based on risk and the auditor’s professional judgement.
FAQs: Audit considerations relating to an SMSF using an investment management service organisation
Competency requirements for review engagements in Australia
Joint Accounting Bodies revise and reissue review competency requirements
CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA) (“the Joint Accounting Bodies”) have revised and reissued Competency requirements for assurance practitioners undertaking review engagements in Australia.
Originally issued 10 years ago in 2013, it sets out the mandatory minimum competency requirements that must be met by all members of CPA Australia, CA ANZ, and the IPA who are not Registered Company Auditors (RCAs) who are seeking to undertake engagements to review historical financial information (review engagements) in Australia, regardless of whether such review engagements are required by statute.
This revision reflects changes to applicable standards, names of professional accounting bodies and rebranding. It is not intended to change the competency requirements themselves. The document has also been restructured to clarify, simplify, and to improve its readability and understandability. We have done this to ensure there is a clear pathway for many SMPs to do their important work in the community.
These competency requirements apply to assurance practitioners undertaking review engagements for financial statements with annual reporting periods commencing on or after 1 October 2013.
Competency requirements for review engagements in Australia
Climate risks disclosures
Climate-related risks are becoming a major area of focus for organisations today. Increasing awareness of the reality and magnitude of climate-related risks has brought about a call to action for the global business community to take steps to mitigate against these risks.
Disclosing the impact of these climate-related risks continue to gain community and stakeholder interest, with investors now demanding businesses provide more climate-related information to assist with their economic decision-making.
Given the key role auditors play in enhancing the credibility of financial statements through application of the independent audit process, auditors should carefully consider the implications of climate change-related risks and any potential impact on financial reporting, in their audit procedures.
Guide on climate risks and its impacts on the audit of financial statements
Climate risk webinar – what external auditors need to consider
Date: 7 March 2023 Given the key role auditors play in enhancing the credibility of financial statements through application of the independent audit process, auditors must carefully consider the implications of climate change-related risks and any potential impact on financial reporting, in their audit procedures. Password: CPAAustralia2023
Quality Management
These online resources will improve your knowledge on the new Quality Management system that all audit firms need to implement by December 2022.
Understanding auditing and assurance
These guides from CPA Australia explain the value and purpose of auditing and assurance to help shareholders understand messages from their company's auditor. They can also use this information in their decision making.
March 2022
August 2021
February 2021
November 2019
November 2019
Audit and assurance publications
This guide supports the use of recognition and accountability mechanisms, focused on individuals in leadership positions, to improve audit quality. A joint publication of CPA Australia and Chartered Accountants Australia New Zealand (CA ANZ) developed on behalf of the Australian Auditing and Accounting Public Policy Committee (APPC).
Root cause analysis (RCA) is an effective and efficient way to improve audit quality. This guide explains how audit practitioners can use RCA to identify and address the reasons behind internal and external reviews and inspection findings. A joint publication of CPA Australia and CA ANZ developed on behalf of the APPC.
This research seeks to understand the extent of audit offshoring, the perceived benefits, and why firms are offshoring audit work. The research also covers the perception of the quality of work delivered from offshore workers. This research was supported by CPA Australia.
Professional development
These online courses from CPA Australia will help improve your knowledge as an auditor. They may also contribute to your CPD hours.
Library resources for audit and assurance
CPA Australia members can access the following auditing and assurance resources from our library.
- Auditing: theory and practice in Malaysia
- Frequently asked questions in international standards on auditing
- Internal auditing
- Lean auditing: Driving added value and efficiency in internal audit
- Auditing, assurance services and forensics: a comprehensive approach
- Core auditing standards for practitioners
- Yellow book: Government auditing standards
- Managerial auditing journal
- Accounting, auditing and accountability journal
- Contemporary issues in audit management and forensic accounting
Auditing and assurance standards
Auditing and assurance standards, along with the Code of Ethics for Professional Accountants and related standards, establish requirements and provide application and other material for audits, reviews and other assurance engagements.