In February 2012, the Australian Accounting Standards Boards decided at its meeting to propose the withdrawal

of AASB 1031 Materiality. There were several reasons for this proposal which includes: there is no International

Reporting Standard equivalent and it does not look like there will be, since 2005 there has been the gradual

withdrawal of additional Australian guidance from a number of Australian Accounting Standards, and there is

now an updated guidance on materiality in the IASB Conceptual Framework.

The major impact of the withdrawal of AASB 1031 is the removal of the specific quantitative guidance for

materiality. The withdrawal of AASB 1031 became effective to annual reporting beginning on or after 1 July

2015.

Required:

1. Summarize the significant changes and impact on financial reporting with AASB 1031 Materiality (issued by

the Australian Accounting Standards Boards - AASB) from 1995 to 2015. (8 Marks)

You can present your answer using a table format:

Year/Years or

Time period

Changes in AASB1031 Materiality Standard

Impact on financial reporting

3. Post withdrawal of AASB 1031, would this withdrawal of AASB1031 Materiality Standards:

a. harmonise/bring uniformity to auditors' assessment of materiality misstatements or would this

bring disparity to auditors' assessment of misstatements? Why so?

b. What other influence, if any, this would bring to the auditors' judgment on misstatements and

what impacts or implications this would have on the usefulness of financial reports? Discuss

your answer and rationale.

(Support your answers with the relevant Australian Accounting Standards and Australian Auditing Standards as

well as authorised/published Peer-reviewed Academic Journals and Articles.) (10 Marks)

NOTE: In answering Question 4, use APA referencing style and support your answers with relevant accounting

and auditing standards as well as published peer-reviewed academic journals. A minimum of 5 peer-reviewed