Document ID: chunk:federal_register_of_legislation:F2024L01719:body:0:p4
Version: federal_register_of_legislation:F2024L01719
Segment Type: other
Provision Reference: 
Character Range: 9241–12891

Related Services Engagements.

Operative Date

 1.                    This Auditing Standard is operative for financial reporting periods commencing on or after 1 January 2025.

Introduction

Scope of this Auditing Standard

 1.                    This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.

Objective

 1.                    The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.

Definitions

 1.                    For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

         1.                 Assurance practitioner means assurance practitioner as defined in ASQM 1.

         2.                 Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.

         3.                 Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.

         4.                 Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm.  In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to June 2024), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.

Requirements

Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)

 1.                    The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.

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Application and Other Explanatory Material

Compliance with Relevant Ethical Requirements (Ref: Para. 6)

 1.              The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met.  In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.

 2.              APES 110 establishes the fundamental principles of ethics which are:

         1.                 Integrity;

         2.                 Objectivity;

         3.                 Professional competence and due care;

         4.                 Confidentiality; and

         5.                 Professional behaviour.

The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.

 1.              APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality