Document ID: chunk:federal_register_of_legislation:F2022C01152:front:0:p2
Version: federal_register_of_legislation:F2022C01152
Segment Type: other
Provision Reference: 
Character Range: 3209–7334

CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING

Paragraphs

Application...............................................................Aus 0.1-Aus 0.2

Operative Date............................................................Aus 0.3

Introduction

Scope of this Auditing Standard..................................................1

Nature of Accounting Estimates.................................................2-3

Key Concepts of this Auditing Standard...........................................4-9

Effective Date..............................................................10

Objective.................................................................11

Definitions................................................................12

Requirements

Risk Assessment Procedures and Related Activities.................................13-15

Identifying and Assessing the Risks of Material Misstatement.........................16-17

Responses to the Assessed Risks of Material Misstatement............................18-30

Disclosures Related to Accounting Estimates........................................31

Indicators of Possible Management Bias...........................................32

Overall Evaluation Based on Audit Procedures Performed............................33-36

Written Representations.......................................................37

Communication with Those Charged With Governance, Management, or Other Relevant Parties...38

Documentation..............................................................39

Application and Other Explanatory Material

Nature of Accounting Estimates..............................................A1-A7

Key Concepts of this Auditing Standard........................................A8-A13

Definitions............................................................A14-A18

Risk Assessment Procedures and Related Activities..............................A19-A63

Identifying and Assessing the Risks of Material Misstatement.......................A64-A80

Responses to the Assessed Risks of Material Misstatement........................A81-A132

Indicators of Possible Management Bias.....................................A133-A136

Overall Evaluation Based on Audit Procedures Performed........................A137-A144

Written Representations.....................................................A145

Communication with Those Charged With Governance, Management or Other Relevant PartiesA146-A148

Documentation.......................................................A149-A152

Appendix 1: Inherent Risk Factors
Appendix 2: Communications with Those Charged with Governance

COMPILATION DETAILS

Auditing Standard ASA 540 Auditing Accounting Estimates and Related Disclosures (as Amended)

This compilation takes into account amendments made up to and including 5 November 2021 and was prepared on 31 March 2022 by the Auditing and Assurance Standards Board (AUASB).

This compilation is not a separate Auditing Standard made by the AUASB.  Instead, it is a representation of ASA 540 (December 2018) as amended by other Auditing Standards which are listed in the Table below.

Table of Standards
Standard        Date made        Operative Date
ASA 540 [A]     5 December 2018  Financial reporting periods commencing on or after 15 December 2019[*]
ASA 2020-1 [B]  3 March 2020     Financial reporting periods commencing on or after 15 December 2021[#]
ASA 2021-5 [C]  5 November 2021  Financial reporting periods commencing on or after 15 December 2021
ASA 2021-1 [D]   10 March 2021   Financial reporting periods commencing on or after 15 December 2022

    [A] Federal Register of Legislation – registration number F2019L00014, 3 January 2019

    [B] Federal Register of Legislation – registration number F2020L00252, 13 March 2020

    [C] Federal Register of Legislation – registration number F2021L01525, 8 November 2021

    [D] Federal Register of Legislation – registration number F2021L00403, 1 April 2021

Table of Amendments
Paragraph affected                                                                     How affected  By … [paragraph]