AASB 16 Leases for Auditors
What does AASB 16 Leases require of a Auditor?
The Australian adoption of IFRS 16: the single lessee model that puts a right-of-use asset, with its lease liability, on the balance sheet for every lease beyond the short-term and low-value exemptions, with the rules for identifying a lease, separating components, setting the lease term, measuring and remeasuring the liability, modifications, presentation and disclosure; the lessor model that classifies leases as finance or operating and accounts for each; sale and leaseback accounting; and the Australian paragraphs for not-for-profit below-market leases and public sector entities. Under AASB 16 Leases, which defines 22 controls, a Auditor's work is deciding which controls you own outright, which you share and which belong to another team, then holding the evidence for the first group.
Which AASB 16 Leases controls land on the Auditor
Internal Auditors assess whether compliance controls are operating effectively. They plan and execute audit engagements, evaluate evidence, report findings, and track remediation of identified gaps and nonconformities.
AASB 16 Leases defines 22 controls across 7 domains that directly affect the Auditor role. Understanding which controls fall within your ownership, which are shared, and which are owned by other teams is the foundation of effective compliance management.
What a Auditor is accountable for under AASB 16 Leases
Planning and executing risk-based audit engagements against compliance frameworks
Evaluating control design and operating effectiveness through testing
Documenting findings, observations, and recommendations in audit reports
Tracking remediation actions and verifying closure of audit findings
Assessing organisational readiness for external audits and certifications
Where Auditors lose time on AASB 16 Leases
These are the most common obstacles Auditors face when managing AASB 16 Leases compliance, and how to address them:
Challenge 1
Efficiently testing controls across large, complex frameworks
Challenge 2
Accessing reliable evidence without disrupting business operations
Challenge 3
Mapping controls across multiple frameworks to avoid duplicate audit testing
Challenge 4
Keeping audit programmes current with regulatory and framework changes
Challenge 5
Communicating audit findings in a way that drives management action
A working order for a Auditor starting on AASB 16 Leases
1. Readiness Assessment
Take a 5-minute readiness assessment to identify your organisation's current gap profile against AASB 16 Leases. Get a prioritised action plan tailored to your specific situation.
2. Cross-Framework Mapping
Use our platform to map AASB 16 Leases controls against other frameworks you already comply with. Identify overlapping controls to reduce duplicate effort.
3. Build Your Toolkit
Equip yourself with AASB 16 Leases toolkits, self-assessments, and implementation guides from our store. Resources designed specifically for Auditors managing compliance programmes.
4. Continuous Monitoring
Establish ongoing compliance monitoring using our platform's gap analysis tools. Track your maturity over time and demonstrate progress to stakeholders.
AASB 16 Leases in your sector
Who else owns part of AASB 16 Leases
Questions Auditors ask about AASB 16 Leases
What does a Auditor need to know about AASB 16 Leases?
How does AASB 16 Leases affect the Auditor role?
What are the biggest AASB 16 Leases challenges for Auditors?
How should a Auditor prepare for a AASB 16 Leases audit?
What tools help Auditors manage AASB 16 Leases compliance?
Auditor: How ready is your organisation for AASB 16 Leases?
Answer 25 questions and get a professional readiness report with gap analysis, maturity scores, and prioritised action items. Results in 5 minutes.