Document ID: chunk:federal_register_of_legislation:F2025L00105:body:0:p6
Version: federal_register_of_legislation:F2025L00105
Segment Type: other
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in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.

 2.                 Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [1] ASA 700 addresses the requirements for the auditor's report relating to the auditor's independence and the relevant ethical requirements the auditor applied.[2]

 3.                 [Deleted by the AUASB. Refer to Aus A29.1(c).]

             Aus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[3]  If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.

 1.                Existing paragraph A30 is amended to read as follows:

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

 1.                Delete paragraph A31.

 2.                Renumber existing Aus A31.1 as 'A31' and amend it to read as follows:

Relevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[4].

[29]   See the Code, paragraphs R400.25-R400.26.
[30]   See ASA 260, paragraphs 17 and A29.
[1] For example, see paragraphs R400.25-R400.26 of the Code
[2] See ASA 700, paragraph Aus 28.1(c).
[3] See paragraph AUST R400.24 of the Code.
[4] See the Code, paragraphs R400.80-R400.84.