Jan15 ASAE 3150 Assurance Engagements on Controls

1 ` asae 3150 (January 2015) Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls Issued by the Auditing and Assurance standards Board asae 3150 - 2 - Obtaining a Copy of this Standard on Assurance Engagements This Standard on Assurance Engagements is available on the Auditing and Assurance standards Board (AUASB) website: Contact Details Auditing and Assurance standards Board Level 7, 600 Bourke Street Melbourne Victoria AUSTRALIA 3000 Phone: (03) 8080 7400 Fax: (03) 8080 7450 E-mail: Postal Address: PO Box 204, Collins Street West Melbourne Victoria AUSTRALIA 8007 COPYRIGHT 2015 Auditing and Assurance standards Board (AUASB).

2 The text, graphics and layout of this Standard on Assurance Engagements are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source as being the AUASB. Requests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Executive Director, Auditing and Assurance standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to Otherwise, no part of this Standard on Assurance Engagements may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.

3 This asae reflects certain aspects of other Australian ASAEs, which reproduce substantial parts of the corresponding International standards on Assurance Engagements (ISAEs) issued by the International Auditing and Assurance standards Board (IAASB) and published by the International Federation of Accountants (IFAC), in the manner described in the statement of Conformity with International standards on Assurance Engagements . The AUASB acknowledges that IFAC is the owner of copyright of material in the ISAEs that is incorporated in this asae throughout the world. All existing rights in this material are reserved outside Australia.

4 Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. ISSN 1834-4860 Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls asae 3150 - 3 - CONTENTS PREFACE AUTHORITY STATEMENT CONFORMITY WITH INTERNATIONAL standards ON Assurance Engagements Paragraphs Application .. 1 Operative Date .. 2 Introduction Scope of this Standard on Assurance Engagements .. 3-14 Objectives .. 15-16 Definitions .. 17 Requirements Applicability of asae 3000 .. 18 Ethical Requirements .. 19 Acceptance and Continuance .. 20-27 Quality control .. 28 Professional Scepticism, Professional Judgement and Assurance Skills and Techniques.

5 29-30 Planning and Performing the engagement .. 31-44 Obtaining Evidence .. 45-74 Work Performed by an Assurance Practitioner s 75 Work Performed by Another Assurance Practitioner or a Responsible Party s or Evaluator s Expert .. 76 Work Performed by the Internal Audit Function .. 77-79 Written Representations .. 80-81 Subsequent Events .. 82 Other Information .. 83 Forming the Assurance Conclusion .. 84-87 Preparing the Assurance Report .. 88-95 Other Communication Responsibilities .. 96-98 Documentation .. 99-100 Application and Other Explanatory Material Application .. A1 Introduction .. A2-A8 Definitions .. A9 Ethical Requirements.

6 A10 Acceptance and Continuance ..A11-A41 Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls asae 3150 - 4 - Planning and Performing the engagement ..A42-A72 Obtaining Evidence ..A73-A110 Work Performed by an Assurance Practitioner s A111 Work Performed by Another Assurance Practitioner or a Responsible Party s or Evaluator s Expert ..A112-A113 Work Performed by the Internal Audit Function ..A114-A115 Written Representations ..A116-A118 Subsequent Events ..A119-A123 Other Information ..A124-A126 Forming the Assurance Conclusion ..A127-A128 Preparing the Assurance Report ..A129-A148 Other Communication Responsibilities.

7 A149-A150 Documentation .. A151 Appendix 1: Nature of Assurance Engagements on Controls Appendix 2: Roles and Responsibilities Appendix 3: standards Applicable to Engagements on Controls Appendix 4: Example Materiality Matrix for Overall control Objectives Appendix 5: Example engagement Letters Appendix 6: Example Representation Letters Appendix 7: Example Responsible Party s Statement on Controls and System Description Appendix 8: Example Assurance Reports on Controls Appendix 9: Example Modified Reasonable Assurance Reports on Controls Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls asae 3150 - 5 - PREFACE Reasons for Issuing asae 3150 The AUASB issues Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls , pursuant to the requirements of the legislative provisions explained below.

8 The AUASB is an independent statutory committee of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 227B of the ASIC Act, the AUASB may formulate Assurance standards for other purposes. Main Features This Standard on Assurance Engagements establishes requirements and provides application and other explanatory material regarding the conduct of and reporting on Engagements to provide Assurance on Controls . The standard replaces Auditing Standard AUS 810 Special Purpose Reports on the Effectiveness of control Procedures, issued by the former AuASB and last revised in July 2002.

9 This Standard on Assurance Engagements facilitates conformity with current AUASB standards and revised asae 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The standard reflects best practice and clarifies how to scope, conduct and report on an Assurance engagement on Controls , to ensure that Assurance engagement quality is maintained and where necessary improved. Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls asae 3150 - 6 - AUTHORITY STATEMENT The Auditing and Assurance standards Board (AUASB) formulates this Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls , pursuant to section 227B of the Australian Securities and Investments Commission Act 2001.

10 This Standard on Assurance Engagements is to be read in conjunction with ASA 100 Preamble to AUASB standards , which sets out the intentions of the AUASB on how the AUASB standards are to be understood, interpreted and applied. Dated: 9 January 2015 M H Kelsall Chairman - AUASB Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls asae 3150 - 7 - Conformity with International standards on Assurance Engagements This Standard on Assurance Engagements asae 3150 Assurance Engagements on Controls has been formulated for Australian public interest purposes and there is no equivalent International Standard on Assurance Engagements (ISAE), issued by the International Auditing and Assurance standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).