Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p9
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 24526–27682

evaluating audit evidence.

29.               Existing footnote 17 in paragraph A30 is amended to read as follows:

See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, paragraph 916.

Amendments to ASA 210 Agreeing the Terms of Audit Engagements

30.               Existing footnote 1 in paragraph 1 is amended to read as follows:

See ASA 220 Quality ControlManagement for an Audit of a Financial Report and Other Historical Financial Information.

31.               Existing paragraph A1 is amended to read as follows:

ASQM 1[7] deals with the firm's responsibilities regarding the acceptance and continuance of client relationships and specific engagements. Assurance engagements, which include audit engagements, may only be accepted when the practitioner considers that relevant ethical requirements such as independence and professional competence will be satisfied, and when the engagement exhibits certain characteristics.7 The auditor's responsibilities in respect of relevant ethical requirements, including those related to independence,  in the context of the acceptance of an audit engagement and in so farinsofar as they are within the control of the auditor are dealt with in ASA 220.8 This Auditing Standard deals with those matters (or preconditions) that are within the control of the entity and upon which it is necessary for the auditor and the entity's management to agree.

32.               Existing footnote 8 in paragraph A1 is amended to read as follows:

See ASA 220, paragraphs 9-1116-21.

Amendments to ASA 230 Audit Documentation

33.               Existing paragraph 3 is amended to read as follows:

Audit documentation serves a number of additional purposes, including the following:

           * …

           * Enabling the conduct of engagement quality control reviews,[3] other types of engagement reviews[4] and monitoring activities under the firm's system of quality management and inspections in accordance with ASQC 1. 3,4

           * …

34.               Existing footnote 2 in paragraph 3 is amended to read as follows:

See ASA 220 Quality ControlManagement for an Audit of a Financial Report and Other Historical Financial Information, paragraphs 15-1729-34.

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

Audit documentation provides evidence that the audit complies with the Australian Auditing Standards. However, it is neither necessary nor practicable for the auditor to document every matter considered, or professional judgement made, in an audit. Further, it is unnecessary for the auditor to document separately (as in a checklist, for example) compliance with matters for which compliance is demonstrated by documents included within the audit file. For example:

           * …

           * In relation to requirements that apply generally throughout the audit, there may be a number of ways in which compliance with them may be demonstrated within the audit file:

                   + …

                   + Similarly, that the engagement partner has taken responsibility for the direction,