Reference no: EM132639228

Question - 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.

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.)

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.