Document ID: chunk:federal_register_of_legislation:F2020L00885:body:0:p12
Version: federal_register_of_legislation:F2020L00885
Segment Type: other
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Character Range: 33259–36329

the circumstances that create the threats, or applying safeguards to reduce threats to an acceptable level. There may also be safeguards specific to the audit engagement.

49.               Paragraph A19 is amended as follows:

The evaluation of whether the threats to objectivity are at an acceptable level the significance of threats to objectivity and of whether there is a need for safeguards may depend upon the role of the auditor's expert and the significance of the expert's work in the context of the audit. In some cases, it may not be possible to eliminate circumstances that create threats or apply safeguards to reduce threats to an acceptable level There may be some circumstances in which safeguards cannot reduce threats to an acceptable level, for example, if a proposed auditor's expert is an individual who has played a significant role in preparing the information that is being audited, that is, if the auditor's expert is a management's expert.

Amendments to ASA 700

50.               Paragraph 40 is amended as follows:

The Auditor's Responsibilities for the Audit of the Financial Report section of the auditor's report also shall: (Ref: Para. A50)

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(b)  …, related safeguards actions taken to eliminate threats or safeguards applied; and

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Amendments to ASA 700 Appendix 1: [Aus] Illustration 1A, [Aus] Illustration 2A, Illustration 3 and Illustration 4

51.               The fifth point of [Aus] Illustration 1A, [Aus] Illustration 2A, Illustration 3 and Illustration 4 are amended as follows:

    For purposes of this illustrative auditor's report, the following circumstances are assumed:

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               * The relevant ethical requirements that apply to the audit are the Accounting Professional &and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards).

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52.               [Aus] Illustration 1A: Example Auditor's Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:

INDEPENDENT AUDITOR'S REPORT

Basis for Opinion

... We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional &and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) ...

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Auditor's Responsibilities for the Audit of the Financial Report

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We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.

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53.               [Aus] Illustration 2A: Example Auditor's Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:

INDEPENDENT AUDITOR'S REPORT

…

Basis for Opinion

... We are independent of