Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p16
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
Provision Reference: 
Character Range: 45173–48324

particular identified or suspected non-compliance will depend on the relationship of the perpetration and concealment, if any, of the act to specific controls activities and the level of management or individuals working for, or under the direction of, the entity involved, especially implications arising from the involvement of the highest authority within the entity.  As noted in paragraph 9, the auditor's compliance with law, regulation or relevant ethical requirements may provide further information that is relevant to the auditor's responsibilities in accordance with paragraph 22.

Amendments to ASA 260

58.               Existing paragraph A12 is amended to read as follows:

    Communicating significant risks identified by the auditor helps those charged with governance understand those matters and why they were determined to be significant risks require special audit consideration.  The communication about significant risks may assist those charged with governance in fulfilling their responsibility to oversee the financial reporting process.

59.               Existing paragraph A13 is amended to read as follows:

    Matters communicated may include:

    …

           * The auditor's approach to the entity's system of internal control.  relevant to the audit.

    …

60.               Existing footnote 27 in paragraph A52 is amended to read as follows:

See ASA 315, paragraph A78 Appendix 3.

Amendments to ASA 265

61.               Existing paragraph 1 is amended to read as follows:

    This Australian Standard on Auditing (ASA) deals with the auditor's responsibility to communicate appropriately to those charged with governance and management deficiencies in internal control that the auditor has identified in an audit of financial report.  This ASA 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[1] and ASA 330.2 ASA 2603 establishes further requirements and provides guidance regarding the auditor's responsibility to communicate with those charged with governance in relation to the audit.

62.               Existing paragraph 2 is amended to read as follows:

    The auditor is required to obtain an understanding of the entity's system of internal control relevant to the audit 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 ASA specifies which identified deficiencies the auditor is required to communicate to those charged with governance and management.

63.               Existing paragraph A3 is amended to read as follows:

    While the concepts underlying controls