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ASA 701(December 2015)Explanatory StatementASA 701Communicating Key Audit Mattersin the Independent Auditor’s ReportIssued by theAuditing and Assurance Standards Board
ASA 701- 2 -EXPLANATORY STATEMENTObtaining a Copy of this Explanatory StatementThis Explanatory Statement is available on the Auditing and Assurance Standards Board (AUASB)website: Contact DetailsAuditing and Assurance Standards BoardPodium LevelLevel 14, 530 Collins StreetMelbourneVictoria3000AUSTRALIAPhone: (03) 8080 7400E-mail: [email protected]Postal Address:PO Box 204Collins Street WestMelbourneVictoria8007AUSTRALIA
Explanatory Statement ASA 701Communicating Key Audit Matters in the Independent Auditor’sReportASA 701- 3 -EXPLANATORY STATEMENTReasons for Issuing Auditing Standard ASA 701The AUASB issues Auditing Standard ASA 701Communicating Key Audit Matters in theIndependent Auditor’s Reportpursuant to the requirements of the legislative provisions and theStrategic Direction explained below.The AUASB is an independent statutory committee of the Australian Government established undersection 227A of theAustralian Securities and Investments Commission Act 2001, as amended(ASIC Act).Under section 336 of theCorporations Act 2001, the AUASB may make AuditingStandards for the purposes of the corporations legislation.These Auditing Standards are legislativeinstruments under theLegislative Instruments Act 2003.Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), theAUASB is required, inter alia, to develop auditing standards that have a clear public interest focus andare of the highest quality.The Auditing Standard conforms with ISA 701Communicating Key Audit Matters in the IndependentAuditor’s Reportissued by the International Auditing and Assurance Standard Board.