Harmonisation of auditing standards Australia made a decision to harmonise its auditing standards with the ISAs issued by the IAASB.

Since 2006, the AUASB has been issuing ASAs based on the ISAs. In relation to the Clarity project where the Clarity format ISAs were used as the underlying auditing standards for the ASAs, the underlying standards could only be amended from the equivalent ISA due to one of three reasons:

1. where the ASA must address Australian legal and/or regulatory requirements 2. where the ASA must comply with Australian legislative instrument requirements 3. where the ASA needs to address ‘additional public interest’ matters.

Required

Given how closely Australian auditing standards are to ISAs, discuss the pros and cons of setting separate Australian auditing standards.