Section 1: Agency overview and resources
1.1 Strategic direction statement
The Office of the Auditing and Assurance Standards Board (AUASB) is an Australian Government agency under the Australian Securities and Investments Commission Act 2001.
The functions of the AUASB are to:
- make auditing standards under section 336 of the Corporations Act 2001 for the purposes of the corporations legislation;
- formulate auditing and assurance standards for other purposes;
- formulate guidance on auditing and assurance matters;
- participate in and contribute to the development of a single set of auditing standards for world‑wide use; and
- advance and promote the main objectives of part 12 of the Australian Securities and Investments Commission Act 2001.
The vision of the AUASB is to be recognised as a leading national auditing and assurance standards setting body that develops high quality auditing and assurance standards and guidance in the public interest.
The mission of the AUASB is to develop, in the public interest, high quality auditing and assurance standards and related guidance as a means to enhance the relevance, reliability and timeliness of information provided to users of audit and assurance services.
Key strategies during 2013‑14 include to:
- develop auditing and assurance standards and guidance;
- identify emerging auditing and assurance issues;
- contribute to and influence the development of international auditing standards; and
- promote awareness and understanding of the AUASB role and work program, auditor responsibilities, and the role of auditing and assurance services.
1.2 Agency resource statement
Table 1.1 shows the total resources for the AUASB.
Estimate of prior year amounts available in 2013‑14 $'000 |
+ | Proposed at Budget 2013‑14 $'000 |
= | Total estimate 2013‑14 $'000 |
Actual available appropriation 2012‑13 $'000 |
||
---|---|---|---|---|---|---|---|
Ordinary annual services | |||||||
Departmental | |||||||
Prior year departmental appropriation | 931 | 4 | - | 931 | - | ||
Departmental appropriation3 | - | 2,244 | 1 | 2,244 | 2,239 | ||
Receipts from other sources (s31) | - | 33 | 2 | 33 | 32 | ||
Total ordinary annual services | A | 931 | 2,277 | 3,208 | 2,271 | ||
Other services | |||||||
Departmental non-operating | |||||||
Equity injections | 579 | 4 | - | 579 | - | ||
Total other services | B | 579 | - | 579 | - | ||
Total net resourcing for AUASB (A+B) | 1,510 | 2,277 | 3,787 | 2,271 |
1. Appropriation Bill (No. 1) 2013‑14.
2. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.
3. Includes $0.04 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).
4. Estimated adjusted balance carried from previous year for annual appropriations.
1.3 Budget measures
Budget measures relating to the AUASB are summarised below.
Program | 2012‑13 $'000 |
2013‑14 $'000 |
2014‑15 $'000 |
2015‑16 $'000 |
2016‑17 $'000 |
|
---|---|---|---|---|---|---|
Expense measures | ||||||
Targeted savings — public service efficiencies1 | 1.1 | (10) | (14) | (12) | (11) | (10) |
Total expense measures | (10) | (14) | (12) | (11) | (10) |
1 This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13.
Prepared on a Government Finance Statistics (fiscal) basis.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.
The AUASB's outcome is described below,
specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of the AUASB.
Outcome 1: The formulation and making of auditing and assurance standards that are used by auditors of Australian entity financial reports or for other auditing and assurance engagements
Outcome 1 strategy
The key strategies to achieve Outcome 1 are:
- making auditing standards under section 336 of the Corporations Act 2001 and related guidance for use by Australian auditors who are undertaking audit engagements for the purposes of the Corporations legislation, including facilitating and monitoring the implementation of the Australian Auditing Standards;
- formulating auditing and assurance standards and related guidance for use by Australian auditors who are undertaking auditing or assurance;
- engagements for purposes other than the purposes of the Corporations legislation; and
- providing Australian participation in, and contributing to, the development of a single set of auditing standards for world‑wide use. In this regard the AUASB will continue to participate in key International Auditing and Assurance Standards Board (IAASB) projects on auditor reporting, audit quality, International Standards on Auditing implementation monitoring and review engagements.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1.
Outcome 1: The formulation and making of auditing and assurance standards that are used by auditors of Australian entityfinancial reports or for other auditing and assurance engagements | 2012‑13 Estimated actual expenses $'000 |
2013 ‑14 Estimated expenses $'000 |
---|---|---|
Program 1.1: Auditing and Assurance Standards Board | ||
Departmental expenses | ||
Departmental appropriation | 2,234 | 2,241 |
Expenses not requiring appropriation in the budget year | 103 | 120 |
Total expenses for Outcome 1 | 2,337 | 2,361 |
2012‑13 | 2013‑14 | |
Average staffing level (number) | 8 | 8 |
Contributions to Outcome 1
Program 1.1: Auditing and Assurance Standards Board
Program objective
Formulate and maintain Auditing Standards that are legally enforceable under the Corporations Act 2001 and contribute to the development of international auditing standards.
Contribute to the ongoing implementation of Australian Auditing Standards, including:
- monitoring the implementation of Australian Auditing Standards and providing periodic and formal feedback to the IAASB, which has established a project monitoring task force for this purpose;
- monitoring the revision of IAASB International Standards on Auditing and considering the implications for the following equivalent AUASB standards:
- Auditor Reporting; and
- Standard on review engagements.
- developing articles that will highlight key principles in auditing standards; and
- presenting at various public forums, conferences and information sessions.
Formulate and maintain other auditing and assurance standards, ensuring quality and complete coverage of relevant auditing and assurance topics including:
- standards on review engagements;
- assurance engagements other than on historical financial statements;
- assurance on water accounting reports;
- assurance on internal control; and
- assurance on compliance and performance engagements.
Formulate and maintain guidance pronouncements, ensuring that guidance is high quality, timely and provides appropriate coverage through pronouncements that supplement standards and address emerging issues including:
- auditing under National Greenhouse and Energy Reporting and Clean Energy schemes;
- the Australian Prudential Regulation Authority including superannuation, general insurance, approved deposit taking institutions and life insurance companies;
- the Australian Securities and Investments Commission regulated areas, including managed investment schemes;
- auditing self‑managed superannuation funds;
- privity letter requests; and
- auditing grant acquittals.
Influence the development of international and national standards by liaising with the IAASB and other national standard‑setting organisations to contribute to improving the quality of global auditing and assurance standards. This includes working with the New Zealand Auditing and Assurance Standards Board to harmonise Australian and New Zealand auditing standards and undertake joint projects where possible, consistent with the Outcome Proposals agreed in August 2009 by the Australian and New Zealand Prime Ministers.
Through research, communication and consultations to identify and respond to emerging issues on a timely basis, including participating in the early stages of the development of legislation and regulation to better define audit requirements, including:
- development of AUASB Bulletins on various current topics relating to the Board's areas of interest, including the value of using the AUASB auditing framework;
- updating the Audit Committees Guide; and
- promoting thought leadership on the importance of achieving and heightening audit quality.
Through a detailed communication and consultation plan, the AUASB strategy is to increase awareness of the AUASB's work among its stakeholders, and to ensure that stakeholders' views are appropriately considered in the AUASB activities and initiatives.
Program expenses
There are no significant changes to estimates across the forward years.
2012‑13 Revised budget $'000 |
2013‑14 Budget $'000 |
2014‑15 Forward year 1 $'000 |
2015‑16 Forward year 2 $'000 |
2016‑17 Forward year 3 $'000 |
|
---|---|---|---|---|---|
Annual departmental expenses | |||||
Departmental items | 2,337 | 2,361 | 2,380 | 2,391 | 2,372 |
Total departmental expenses | 2,337 | 2,361 | 2,380 | 2,391 | 2,372 |
Program deliverables
The AUASB has the following deliverables:
- prepare and issue auditing standards under section 336 of the Corporations Act 2001;
- pre
pare and issue new and revised assurance standards, standards on review engagements and related guidance; and - contribute to the development of international auditing and assurance standards.
Program key performance indicators
The AUASB has the following key performance indicators:
- issued auditing standards are high quality, developed on a timely basis, are consistent with those developed by the IAASB and are based on the corresponding versions of International Standards on Auditing;
- issued assurance standards and standards on review engagements are high quality and developed on a timely basis;
- relevant guidance is issued to auditors, assurance practitioners and other users, as appropriate, on a timely basis;
- emerging auditing and assurance issues are identified and addressed on a timely basis;
- responses are made to all significant IAASB exposure drafts; and
- appropriate input is provided to the IAASB.
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of the agency finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, program expenses, and special accounts.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The AUASB does not have any administered funds.
3.1.2 Special accounts
The AUASB does not have any special accounts.
3.1.3 Australian Government Indigenous Expenditure
The AUASB does not have any Australian Government Indigenous Expenditure.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
There are no material differences between agency resourcing and financial statements.
3.2.2 Analysis of budgeted financial statements
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
The AUASB is budgeting for a break‑even operating result for 2013‑14 after adding back non‑appropriated depreciation and amortisation expenses.
3.2.3 Budgeted financial statements tables
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
EXPENSES | |||||
Employee benefits | 1,542 | 1,541 | 1,591 | 1,645 | 1,701 |
Supplier expenses | 713 | 721 | 688 | 655 | 623 |
Depreciation and amortisation | 79 | 96 | 98 | 88 | 45 |
Finance costs | 3 | 3 | 3 | 3 | 3 |
Total expenses | 2,337 | 2,361 | 2,380 | 2,391 | 2,372 |
LESS: | |||||
OWN-SOURCE INCOME | |||||
Revenue | |||||
Sale of goods and rendering of services | 32 | 33 | 35 | 36 | 37 |
Total revenue | 32 | 33 | 35 | 36 | 37 |
Gains | |||||
Other | 24 | 24 | 24 | 24 | 24 |
Total gains | 24 | 24 | 24 | 24 | 24 |
Total own-source income | 56 | 57 | 59 | 60 | 61 |
Net cost of (contribution by) services | 2,281 | 2,304 | 2,321 | 2,331 | 2,311 |
Appropriation revenue | 2,202 | 2,208 | 2,223 | 2,243 | 2,266 |
Surplus (deficit) attributable to the Australian Government | (79) | (96) | (98) | (88) | (45) |
Note: Impact of Net Cash Appropriation Arrangements | |||||
2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
20116-17 $'000 |
|
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations | - | - | - | - | - |
plus depreciation/amortisation expenses previously funded through revenue appropriations | (79) | (96) | (98) | (88) | (45) |
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income | (79) | (96) | (98) | (88) | (45) |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
ASSETS | |||||
Financial assets | |||||
Cash and equivalents | 200 | 200 | 200 | 200 | 200 |
Trade and other receivables | 1,265 | 1,235 | 1,206 | 1,168 | 1,185 |
Total financial assets | 1,465 | 1,435 | 1,406 | 1,368 | 1,385 |
Non-financial assets | |||||
Infrastructure, plant and equipment | 208 | 148 | 82 | 24 | 33 |
Intangibles | 8 | 12 | 10 | 12 | 5 |
Other | 5 | 5 | 5 | 5 | 5 |
Total non-financial assets | 221 | 165 | 97 | 41 | 43 |
Total assets | 1,686 | 1,600 | 1,503 | 1,409 | 1,428 |
LIABILITIES | |||||
Provisions | |||||
Employees | 563 | 594 | 625 | 657 | 690 |
Other | 85 | 88 | 90 | 93 | 96 |
Total provisions | 648 | 682 | 715 | 750 | 786 |
Payables | |||||
Suppliers | 50 | 51 | 50 | 49 | 45 |
Other | 244 | 183 | 115 | 37 | 31 |
Total payables | 294 | 234 | 165 | 86 | 76 |
Total liabilities | 942 | 916 | 880 | 836 | 862 |
Net assets | 744 | 684 | 623 | 573 | 566 |
EQUITY | |||||
Contributed equity | 595 | 499 | 401 | 313 | 268 |
Asset Revaluation Reserve | 22 | 22 | 22 | 22 | 22 |
Retained surpluses or accumulated deficits | 127 | 163 | 200 | 238 | 276 |
Total equity | 744 | 684 | 623 | 573 | 566 |
Current assets | 1,470 | 1,440 | 1,411 | 1,373 | 1,390 |
Non-current assets | 216 | 160 | 92 | 36 | 38 |
Current liabilities | 340 | 372 | 402 | 432 | 462 |
Non-current liabilities | 602 | 544 | 478 | 404 | 400 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
OPERATING ACTIVITIES | |||||
Cash received | |||||
Goods and services | |||||
Appropriations | 2,254 | 2,211 | 2,217 | 2,236 | 2,275 |
Other | 80 | 61 | 70 | 78 | 37 |
Total cash received | 2,334 | 2,272 | 2,287 | 2,314 | 2,312 |
Cash used | |||||
Employees | 1,512 | 1,512 | 1,560 | 1,613 | 1,668 |
Suppliers | 743 | 757 | 733 | 708 | 606 |
Other | - | - | - | - | 29 |
Total cash used | 2,255 | 2,269 | 2,293 | 2,321 | 2,303 |
Net cash from (used by) operating activities | 79 | 3 | (6) | (7) | 9 |
INVESTING ACTIVITIES | |||||
Cash used | |||||
Purchase of property, plant and equipment | 89 | 39 | 31 | 31 | 47 |
Total cash used | 89 | 39 | 31 | 31 | 47 |
Net cash from (used by) investing activities | (89) | (39) | (31) | (31) | (47) |
FINANCING ACTIVITIES | |||||
Cash received | |||||
Contributed equity | 37 | 36 | 37 | 38 | 38 |
Total cash received | 37 | 36 | 37 | 38 | 38 |
Net cash from (used by) financing activities | 37 | 36 | 37 | 38 | 38 |
Net increase (decrease) in cash held | 27 | - | - | - | - |
Cash at the beginning of the reporting period | 173 | 200 | 200 | 200 | 200 |
Cash at the end of the reporting period | 200 | 200 | 200 | 200 | 200 |
Prepared on Australian Accounting Standards basis.
Retained surpluses $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/ capital $'000 |
Total equity $'000 |
|
---|---|---|---|---|---|
Opening balance as at 1 July 2013 | |||||
Balance carried forward from previous period | 595 | 22 | - | 127 | 744 |
Adjusted opening balance | 595 | 22 | - | 127 | 744 |
Comprehensive income | |||||
Surplus (deficit) for the period | (96) | - | - | - | (96) |
Total comprehensive income recognised directly in equity | (96) | - | - | - | (96) |
Transactions with owners | |||||
Contributions by owners | |||||
Appropriation (departmental capital budget) | - | - | - | 36 | 36 |
Total transactions with owners | - | - | - | 36 | 36 |
Estimated closing balance as at 30 June 2014 | 499 | 22 | - | 163 | 684 |
Prepared on Australian Accounting Standards basis.
Estimated actual 2012‑13 $'000 |
Budget estimate 2013‑14 $'000 |
Forward estimate 2014‑15 $'000 |
Forward estimate 2015‑16 $'000 |
Forward estimate 2016‑17 $'000 |
|
---|---|---|---|---|---|
NEW CAPITAL APPROPRIATIONS | |||||
Capital budget - Bill 1 - DCB | 37 | 36 | 37 | 38 | 38 |
Total new capital appropriations | 37 | 36 | 37 | 38 | 38 |
Provided for: | |||||
Purchase of non-financial assets | 37 | 36 | 37 | 38 | 38 |
Total Items | 37 | 36 | 37 | 38 | 38 |
PURCHASE OF NON-FINANCIAL ASSETS | |||||
Funded by capital appropriation - DCB | 89 | 39 | 31 | 31 | 47 |
TOTAL | 89 | 39 | 31 | 31 | 47 |
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
Total purchases | 89 | 39 | 31 | 31 | 47 |
Total cash used to acquire assets | 89 | 39 | 31 | 31 | 47 |
Prepared on Australian Accounting Standards basis.
Buildings $'000 |
Other infrastructure, plant and equipment $'000 |
Intangibles $'000 |
L&B, IP&E held for sale $'000 |
Total $'000 |
|
---|---|---|---|---|---|
As at 1 July 2013 | |||||
Gross book value | - | 589 | 50 | - | 639 |
Accumulated depreciation/amortisation and impairment | - | 380 | 42 | - | 422 |
Opening net book balance | - | 209 | 8 | - | 217 |
Capital asset additions | |||||
By purchase - appropriation ordinary annual services | - | 25 | 14 | - | 39 |
Total additions | - | 25 | 14 | - | 39 |
Other movements | |||||
Depreciation/amortisation expense | - | 86 | 10 | - | 96 |
Total other movements | - | 86 | 10 | - | 96 |
As at 30 June 2014 | |||||
Gross book value | - | 614 | 64 | - | 678 |
Accumulated depreciation/amortisation and impairment | - | 466 | 52 | - | 518 |
Closing net book balance | - | 148 | 12 | - | 160 |
Prepared on Australian Accounting Standards basis.