Document ID: chunk:federal_register_of_legislation:F2021L00403:body:0:p23
Version: federal_register_of_legislation:F2021L00403
Segment Type: other
Provision Reference: 
Character Range: 64106–67202

if the auditor's firm has detailed protocols covering the circumstances in which the work of such an expert is used.

Amendments to ASA 700 Forming an Opinion and Reporting on a Financial Report

109.           Existing paragraph A36 is amended to read as follows:

Law or regulation, Australian Auditing Standards or the terms of an audit engagement may require the auditor to provide in the auditor's report more specific information about the sources of the relevant ethical requirements, including those pertainingrelated to independence, that applied to the audit of the financial report.

110.           Existing paragraph Aus A61.1 is amended to read as follows:

ASQC 136 requires that The objective of the firm in ASQM 1[36] is to design, implement and operate a system of quality management that provides the firm with establish policies and procedures to provide reasonable assurance that engagements are performed:

           * The firm and its personnel fulfill their responsibilities in accordance with professional standards and applicable legal and regulatory requirements, and conduct engagements in accordance with such standards and requirements; and.

           * Engagement reports issued by the firm or engagement partners are appropriate in the circumstances.

Notwithstanding the objective of these ASQCM 1 requirements, naming the engagement partner in the auditor's report is intended to provide further transparency to the users of the auditor's report.

Amendments to ASA 701 Communicating Key Audit Matters in the Independent Auditor's Report

111.           Existing paragraph A15 is amended to read as follows:

Various Australian Auditing Standards require specific communications with those charged with governance and others that may relate to areas of significant auditor attention. For example:

           * …

           * ASA 220 establishes requirements for the engagement partner in relation to undertaking appropriate consultation on difficult or contentious matters, matters on which the firm's policies or procedures require consultation,21 and other matters that in the engagement partner's professional judgement, require consultation. For example, the auditor may have consulted with others within the firm or outside the firm on a significant technical matter, which may be an indicator that it is a key audit matter. The engagement partner is also required to discuss, among other things, significant matters and significant judgements arising during the audit engagement with the engagement quality control reviewer.22

112.           Existing footnotes 21 and 22 in paragraph A15 are amended to read as follows:

21 See ASA 220 Quality ControlManagement for an Audit of a Financial Report and Other Historical Financial Information, paragraph 1835.

22 See ASA 220, paragraph 1936.

113.           Existing paragraph A63 is amended to read as follows:

The requirement in paragraph 17(b) to communicate with those charged with governance when the auditor has determined there are no key audit matters to communicate in the auditor's report may