Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p5
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
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Character Range: 13508–16625

Report (Issued December 2015 and amended to December 2018)

(y)                ASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015)

(z)                ASA 800 Special Considerations – Audits of Financial Reports Prepared in Accordance with Special Purpose Frameworks (Issued July 2016 and amended to May 2017)

Definition

6.                   For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary.

Amendments to Auditing Standards

7.                   This Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

8.                   Throughout the Australian Auditing Standards all references to the title of ASA 315 have been amended to ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment. In addition to the Auditing Standards listed in paragraph 5, the following Auditing Standards follow the same amendment to the title of ASA 315.

(a)                ASA 220 Quality Control for an Audit of a Financial Report and Other Historical Financial Information (Issued October 2009 and amended to May 2017)

(b)                ASA 510 Initial Audit Engagements—Opening Balances (Issued October 2009 and amended to December 2015)

(c)                ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (Issued October 2009 and amended to July 2013)

Amendments to ASA 200

9.                   Existing paragraph 7 is amended to read follows:

The ASAs contain objectives, requirements and application and other explanatory material that are designed to support the auditor in obtaining reasonable assurance.  The ASAs require that the auditor exercise professional judgement and maintain professional scepticism throughout the planning and performance of the audit and, among other things:

           * Identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, the applicable financial reporting framework and including the entity's system of internal control.

    …

10.               Existing paragraph 13 is amended to read as follows:

    For purposes of the ASAs, the following terms have the meanings attributed below:

    …

(n) Risk of material misstatement – The risk that the financial report is materially misstated prior to audit.  This consists of two components, described as follows at the assertion level: (Ref: Para. A3)

(i)                 Inherent risk – The susceptibility of an assertion about a class of transaction,