Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p7
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 18846–22015

engagements. The auditor, assurance practitioner, engagement quality control reviewer, and firm are required to comply with these standards in order to be independent when conducting such engagements. The conceptual framework to identify, evaluate and address threats to compliance with the fundamental principles applies in the same way to compliance with independence requirements.

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

The definition of terms in APES 110 may differ from the definitions of those terms in Australian Auditing Standards including terms defined in ASQCM 1, ASA 200 and ASA 220 Quality ControlManagement for an Audit of a Financial Report and Other Historical Financial Information.

In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of ASQCM 1, ASA 200 and ASA 220.

Amendments to ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards

21.               Existing paragraph 14 is amended to read as follows:

The auditor shall comply with relevant ethical requirements, including those pertainingrelated to independence, relating to a financial report audit engagement. (Ref: Para. A16–A19)

22.               Existing paragraph A19 is amended to read as follows and footnotes 12 and 13 are inserted:

ASQCM 19 deals with the firm's responsibilities to establishdesign, implement and maintain itsoperate a system of quality control for audit engagements.10 ASQC 1 sets out the responsibilities ofmanagement that provides the firm for establishing policies and procedures designed to provide it with reasonable assurance that the firm and its personnel complyfulfill their responsibilities in accordance with AUASB Standards and applicable legal and regulatory requirements, and conduct engagements in accordance with such standards and requirements. As part of its system of quality management, ASQM 1 requires the firm to establish quality objectives that address the fulfillment of responsibilities in accordance with relevant ethical requirements, including those pertainingrelated to independence.11 ASA 220 sets out the engagement partner's responsibilities with respect to relevant ethical requirements, including those related to independence[12]. These include remaining alert, through observation and making enquiries as necessary, for evidence of breaches of relevant ethical requirements by members of the engagement team, determining the appropriate action if matters come to the engagement partner's attention that indicate that members of the engagement team have breached relevant ethical requirements, and forming a conclusion on compliance with independence requirements that apply to the audit engagement.12 ASA 220 recognises that the engagement team is entitled to rely on a firm's system of quality control in meeting its responsibilities with respect to quality control procedures applicable to the individual audit engagement, unless information provided by the firm or other parties suggests otherwise.