Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p10
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
Provision Reference: 
Character Range: 27782–30969

as appropriate.  Examples of matters that may be documented together in the audit of a smaller entity include the understanding of the entity and its environment, the applicable financial reporting framework, and the entity's system of internal control, the overall audit strategy and audit plan, materiality determined in accordance with ASA 320,9 assessed risks, significant matters noted during the audit, and conclusions reached.

34.               Existing Appendix 1 is amended to read as follows:

    Specific Audit Documentation Requirements in Other Australian Auditing Standards

    This appendix identifies paragraphs in other Australian Auditing Standards that contain specific documentation requirements. The list is not a substitute for considering the requirements and related application and other explanatory material in Australian Auditing Standards.

    …

           * ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment – paragraph 382

Amendments to ASA 240

35.               Existing paragraph 7 is amended to read as follows:

    Furthermore, the risk of the auditor not detecting a material misstatement resulting from management fraud is greater than for employee fraud, because management is frequently in a position to directly or indirectly manipulate accounting records, present fraudulent financial information or override controls procedures designed to prevent similar frauds by other employees.

36.               Existing footnote 6 in paragraph 16 is amended to read as follows:

See ASA 315, paragraph 17‒18 10

37.               Existing paragraph 17 is amended to read as follows:

    When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and including the entity's system of internal control, required by ASA 315,7 the auditor shall perform the procedures in paragraphs 2317–4324 to obtain information for use in identifying the risks of material misstatement due to fraud.

38.               Existing paragraph 21 is amended to read as follows:

    Unless all of those charged with governance are involved in managing the entity,8 the auditor shall obtain an understanding of how those charged with governance exercise oversight of management's processes for identifying and responding to the risks of fraud in the entity and the internal controls that management has established to mitigate these risks.  (Ref: Para. A20-A22)

39.               Existing footnote 9 in paragraph 26 is amended to read as follows:

    See ASA 315, paragraph 2825

40.               Existing paragraph 28 is amended to read as follows:

    The auditor shall treat those assessed risks of material misstatement due to fraud as significant risks and accordingly, to the extent not already done so, the auditor shall obtain an understanding of the entity's related identify the entity's controls, including control activities, relevant to that address such risks, and evaluate their design and determine whether they have been implemented).[10] (Ref: Para. A32-A33)

41.