Document ID: chunk:federal_register_of_legislation:F2020L00885:body:0:p9
Version: federal_register_of_legislation:F2020L00885
Segment Type: other
Provision Reference: 
Character Range: 24344–27592

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         (ii) In respect of threats to independence that are not at an acceptable level, the actions taken to address the threats, including actions that were taken to eliminate the circumstances that create the threats, or applying The related safeguards that have been applied to eliminate identified threats to independence or reduce them the threats to an acceptable level. (Ref: Para. A29–A32)

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35.               Paragraph A30 is amended as follows:

The communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed safeguards to be communicated, vary varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate circumstances that created threats., but generally address:

(a)     Threats to independence, which may be categorised as: self-interest threats, self-review threats, advocacy threats, familiarity threats, and intimidation threats; and

(b)     Safeguards created by the profession, legislation or regulation, safeguards within the entity, and safeguards within the firm's own systems and procedures.

36.               Paragraph A49 is amended as follows:

... For example:

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           * Communications regarding independence may be appropriate whenever significant judgements are made about threats to independence and how threats to independence that are not at an acceptable level will be addressed related safeguards, for example, when accepting an engagement to provide non-audit services, and at a concluding discussion.

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Amendments to ASA 510

Amendments to ASA 510 Appendix 1: Illustration 1 and [Aus] Illustration 2A

37.               The eighth point of both Illustration 1 and [Aus] Illustration 2A 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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38.               Illustration 1: Example Auditor's Report for Qualified Opinion – Jurisdiction Prohibits a Qualified Opinion on Performance and Cash Flows and an Unmodified Opinion on Financial Position (Fair Presentation Framework), is amended as follows:

INDEPENDENT AUDITOR'S REPORT

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Basis for Qualified Opinion

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We conducted our audit in accordance with Australian Auditing Standards. ... We are independent of the Entity in accordance with 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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39.               [Aus] Illustration 2A: Example Auditor's Report for Qualified opinion – Jurisdiction Prohibits a Qualified Opinion on Performance and Cash Flows and an Unmodified Opinion on Financial Position – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:

40.               INDEPENDENT AUDITOR'S REPORT

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Basis for Qualified Opinion

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We conducted our audit in accordance with