Document ID: chunk:federal_register_of_legislation:F2021C01254:reg:5:p2
Version: federal_register_of_legislation:F2021C01254
Segment Type: reg
Provision Reference: reg 5 (pt 2/11)
Character Range: 8414–11897

A4              Aus A 4.1
                                            A21          A5
                                            A22          A6
                                            A23          A7              Aus A7.1‑Aus A7.2
                                            A24          A8              Aus A8.1‑Aus A8.13
                                            A25          A9              Aus A9.1‑Aus A9.3
                                            Footnote 10  *
                                            Footnote 11  *

Auditing Standard ASA 502

The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims, 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 502 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 5 November 2021 (see Compilation Details).

Auditing Standard ASA 502

Audit Evidence ─ Specific Considerations for Litigation and Claims

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 specific considerations by the auditor in obtaining sufficient appropriate audit evidence in accordance with ASA 330,[1] ASA 500[2] and other relevant Australian Auditing Standards, with respect to litigation and claims involving the entity in an audit of a financial report.

Effective Date

2.                   [Deleted by the AUASB.  Refer Aus 0.3]

Objective

3.                   The objective of the auditor is to obtain sufficient appropriate audit evidence regarding the completeness of litigation and claims involving the entity.

Requirements

Completeness of Litigation and Claims

4.                   The auditor shall design and perform audit procedures in order to identify litigation and claims involving the entity which may give rise to a risk of material misstatement, including: (Ref: Para. A1‑Aus A4.1)

(a)                Enquiry of management and, where applicable, others within the entity, including in‑house legal counsel;

(b)                Reviewing minutes of meetings of those charged with governance and correspondence between the entity and its external legal counsel; and

(c)                Reviewing legal expense accounts.  (Ref: Para. A4)

Communication with the Entity's Legal Counsel

External Legal Counsel

5.                   If the auditor assesses a risk of material misstatement regarding litigation or claims that have been identified, or when audit procedures performed indicate that other material litigation or claims may exist, the auditor shall endeavour to, in addition to the procedures required