Document ID: chunk:federal_register_of_legislation:F2023C01130:body:0:p3
Version: federal_register_of_legislation:F2023C01130
Segment Type: other
Provision Reference: 
Character Range: 6935–9938

to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied.  This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.

Conformity with International Standards on Auditing

This Auditing Standard conforms with International Standard on Auditing ISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement issued by the International Auditing and Assurance Standards Board (IAASB), an independent 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 315.

Auditing Standard ASA 315

The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on 4 February 2020.

This compiled version of ASA 315 incorporates subsequent amendments contained in another Auditing Standard made by the AUASB up to and including 27 April 2022 (see Compilation Details).

Auditing Standard ASA 315

Identifying and Assessing the Risks of Material Misstatement

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 15 December 2021.  [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 identify and assess the risks of material misstatement in the financial report.

Key Concepts in this ASA

2.                   ASA 200 deals with the overall objectives of the auditor in conducting an audit of the financial report,[1] including to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptably low level.[2] Audit risk is a function of the risks of material misstatement and detection risk.[3] ASA 200 explains that the risks of material misstatement may exist at two levels:[4] the overall financial report level; and the assertion level for classes of transactions, account balances and disclosures.