Senior managers and those charged with governance responsibilities - such as audit committee members - need to ensure they understand how audit processes and outcomes may change as a result of the new legally enforceable auditing standards that apply for financial periods commencing on or after 1 July 2006.
Members in business are urged to make time to discuss the ramifications of the new standards with their auditor, and may want to start by considering the business impact of changes to the conduct of the audit and the new naming conventions for the audit opinion.
According to Jessie Wong, CPA Australia Technical Adviser Audit and Assurance the extent of impact of the new auditing standards requirements on audit processes will vary from organisation to organisation.
'The new auditing standards may simply formalise the prudent operating procedures and processes auditors and their teams already have in place, so business may see few changes to the conduct of their audit – but companies should not assume this,' said Ms Wong.
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