Document ID: chunk:federal_register_of_legislation:F2019L00016:front:0:p3
Version: federal_register_of_legislation:F2019L00016
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with the Corporations Act 2001; and

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

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

Operative Date

3.                   This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2019, with early adoption, in conjunction with ASA 540 Auditing Accounting Estimates and Related Disclosures permitted.

Introduction

Scope of this Auditing Standard

4.                   This Auditing Standard makes amendments to Australian Auditing Standards. The amendments arise from consequential and conforming changes arising from the issuance of ASA 540 Auditing Accounting Estimates and Related Disclosures.

Objective

5.                   The objective of this Auditing Standard is to make amendments to the following Auditing Standards:

(a)                ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued October 2009 and amended to December 2015)

(b)                ASA 230 Audit Documentation (Issued October 2009 and amended to December 2015)

(c)                ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued October 2009 and amended to May 2017)

(d)                ASA 260 Communication With Those Charged with Governance (Issued December 2015 and amended to May 2017)

(e)                ASA 500 Audit Evidence (Issued October 2009 and amended to May 2017)

(f)                 ASA 505 External Confirmations (Issued October 2009)

(g)                ASA 520 Analytical Procedures (Issued October 2009)

(h)                ASA 580 Written Representations (Issued October 2009 and amended to December 2015)

(i)                 ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued December 2015 and amended to May 2017)

(j)                 ASA 701 Communicating Key Audit Matters in the Independent Auditor's Report (Issued December 2015 and amended to May 2017)).

Definition

6.                   For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary.

Amendments to Auditing Standards

Amendments to ASA 200

7.                   Existing paragraph A42 is amended (including the insertion of new footnotes 19 and 20) to read follows:

The assessment of the risks of material misstatement may be expressed in quantitative terms, such as in percentages, or in non‑quantitative terms. In any case, the need for the auditor to make appropriate risk assessments is more important than the different approaches by which they may be made. The Australian Auditing Standards do not ordinarily refer to inherent risk and control risk separately, but rather to a combined assessment of the "risks of material misstatement." However, ASA 54019 requires a separate assessment of inherent risk and control risk to provide a basis for designing and performing further audit procedures to respond to the assessed risks of