Document ID: chunk:federal_register_of_legislation:F2021C01264:body:0:p3
Version: federal_register_of_legislation:F2021C01264
Segment Type: other
Provision Reference: 
Character Range: 6660–9692

standard‑setting board of the International Federation of Accountants (IFAC).

Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix "Aus".

Compliance with this Auditing Standard enables compliance with ISA 265.

Auditing Standard ASA 265

The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on 27 October 2009.

This compiled version of ASA 265 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 3 March 2020 (see Compilation Details).

Auditing Standard ASA 265

Communicating Deficiencies in Internal Control to Those Charged with Governance and Management

Application

Aus 0.1 This Auditing Standard applies to:

(a) an audit of a financial report for a financial year, or an audit of a financial report for a half‑year, in accordance with the Corporations Act 2001; and

(b) an audit of a financial report, or a complete set of financial statements, for any other purpose.

Aus 0.2 This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.

Operative Date

Aus 0.3 This Auditing Standard is operative for financial reporting periods commencing on or after 1 January 2010.  [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]

Introduction

Scope of this Auditing Standard

      1. This Auditing Standard deals with the auditor's responsibility to communicate appropriately to those charged with governance and management deficiencies in internal control[1] that the auditor has identified in an audit of a financial report.  This Auditing Standard does not impose additional responsibilities on the auditor regarding obtaining an understanding of the entity's system of internal control and designing and performing tests of controls over and above the requirements of ASA 315 and ASA 330.[2]  ASA 260[3] establishes further requirements and provides guidance regarding the auditor's responsibility to communicate with those charged with governance in relation to the audit.

      2. The auditor is required to obtain an understanding of the entity's system of internal control when identifying and assessing the risks of material misstatement.[4]  In making those risk assessments, the auditor considers the entity's system of internal control in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.  The auditor may identify control deficiencies in internal control not only during this risk assessment process but also at any other stage of the audit.  This Auditing Standard specifies