All clear!
Late last month the Auditing and Assurance Standards Board (AUASB) released the first four exposure drafts of Australian Auditing Standards (ASAs) in Clarity format. A Clarity project was initiated at the international level by the International Auditing and Assurance Standards Board (IAASB) in 2004 to ensure a clear and consistent application of auditing standards globally. An aim of redrafting standards in a Clarity format is to make it easier for auditors to understand the intent of the various standards. The "black type/grey type" format is being replaced by a format that explicitly describes the "objectives" of the auditor in applying the standard, the "requirements" of the standard, and "application and other explanatory material".
Over the coming year the AUASB will be redrafting about 41 standards and other pronouncements, which will be operative for audit of financial reports beginning on or after 1 January 2010. So all members will need to make sure that "watch this space", and other announcements by CPA Australia and the AUASB to ensure that they fully acquainted with the new standards when they become operative.
The AUASB will shortly be detailing its Drafting Policies and Rules on its website!