Document ID: chunk:federal_register_of_legislation:F2023L00295:body:0:p5
Version: federal_register_of_legislation:F2023L00295
Segment Type: other
Provision Reference: 
Character Range: 13057–16197

assurance practitioner, engagement quality reviewer and firm are required to apply in order towhen identifying, evaluatinge and addressing threats to compliance with the fundamental principles.

    13.               Existing paragraph A4 is amended to read as follows:

    In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements. APES 110 specifies Independence Standards, which set out requirements and application material on how to apply the conceptual framework to maintain independence when performing audits, reviews or other assurance engagements. The auditor, assurance practitioner, engagement quality reviewer, and firm are required to comply with these standards in order to be independent when conducting such engagements. The conceptual framework to identify, evaluate and address threats to compliance with the fundamental principles applies in the same way to compliance with independence requirements.

    14.               Existing paragraph A5 is amended to read as follows:

    APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence allowsenhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.

    15.               Existing paragraph A6 is deleted and subsequent paragraphs of this Auditing Standard are renumbered and references to these paragraphs are updated accordingly.

    16.               Existing paragraph A7 is amended to read as follows:

    The definition of terms in APES 110 may differ from the definitions of those terms in Australian AuditingAUASB Standards including terms defined in ASQM 1, ASA 200 and ASA 220 Quality Management for an Audit of a Financial Report and Other Historical Financial Information.

    In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB StandardsASQM 1, ASA 200 and ASA 220.

Amendments to ASA 210

    17.               Existing Appendix 1 is amended to read as follows:

    Example of an Audit Engagement Letter

    …

    [The objective and scope of the audit]

     You23 have requested that we audit the financial report of ABC Company which comprises the statement of financial position as at 30 June 20X1 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements including material accounting policy information a summary of significant accounting policies, and the directors' declaration. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter.

     …

Amendments to ASA 510

    Amendments to ASA 510 Appendix 1: Illustration 1 and