Document ID: chunk:federal_register_of_legislation:F2017L01179:body:0:p4
Version: federal_register_of_legislation:F2017L01179
Segment Type: other
Provision Reference: 
Character Range: 9631–12755

15 to paragraph A18 is amended to read as follows:

    See ASA 315, paragraph A59A51 and Appendix 1.

    Appendix 1 is amended to read as follows:

    … (Ref: Para. A23‑A26A24)

    …

13.               Paragraph A26 is amended to read as follows:

    When relevant, the following points could also be made in the audit engagement letter:

           * Arrangements concerning the involvement of other auditors and experts in some aspects of the audit.

           * Arrangements concerning the involvement of internal auditors and other staff of the entity.

           * Arrangements to be made with the predecessor auditor, if any, in the case of an initial audit.

           * A reference to, and description of, the auditor's responsibilities under law, regulation or relevant ethical requirements that address reporting identified or suspected non‑compliance with laws and regulations to an appropriate authority outside the entity.

           * Any restriction of the auditor's liability when such possibility exists.

           * A reference to any further agreements between the auditor and the entity.

           * Any obligations to provide audit working papers to other parties.

 An example of an audit engagement letter is set out in Appendix 1.

Amendments to ASA 220

14.               Footnote # to paragraph 7(p) is amended to read as follows:

    For example, the Institute of Chartered Accountants in Australia and New Zealand, CPA Australia and the Institute of Public Accountants.

15.               A new paragraph after existing paragraph A8 is inserted as follows:

    Law, regulation, or relevant ethical requirements[2] may require the auditor to request, prior to accepting the engagement, the predecessor auditor to provide known information regarding any facts or circumstances that, in the predecessor auditor's judgement, the auditor needs to be aware of before deciding whether to accept the engagement. In some circumstances, the predecessor auditor may be required, on request by the proposed successor auditor, to provide information regarding identified or suspected non‑compliance with laws and regulations to the proposed successor auditor. For example, where the predecessor auditor has withdrawn from the engagement as a result of identified or suspected non‑compliance with laws and regulations, the APES 110 Code of Ethics for Professional Accountants requires that the predecessor auditor, on request by a proposed successor auditor, provides all such facts and other information concerning such non‑compliance that, in the predecessor auditor's opinion, the proposed successor auditor needs to be aware of before deciding whether to accept the audit appointment.[3]

16.               Existing paragraph A29 is moved above to above existing paragraph A28 and the heading Engagement Quality Control Review of Listed Entities (ref para Aus 21.1).

17.               As a result of the change made above, paragraph references are re-numbered and references to these paragraphs are updated accordingly.

Amendments to ASA 240

18.               Footnote 3 to paragraph 5 is