Document ID: chunk:federal_register_of_legislation:F2017L01179:body:0:p9
Version: federal_register_of_legislation:F2017L01179
Segment Type: other
Provision Reference: 
Character Range: 24094–27234

‑ paragraphs 15, 2019 and 2322–2524

    …

         * ASA 700 Forming an Opinion and Reporting on a Financial Report – paragraph 46

    …

Amendments to ASA 450

44.               Existing paragraph 8 is amended to read as follows:

    The auditor shall communicate, unless prohibited by law or regulation, on a timely basis all misstatements accumulated during the audit with the appropriate level of management, unless prohibited by law or regulation.[7] The auditor shall request management to correct those misstatements.  (Ref: Para. A710–A912)

45.               Existing paragraph 9 is amended to read as follows:

    … (Ref: Para. A1310)

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

    … (Ref: Para. A14A11–A15A12)

47.               Existing paragraph 11 is amended to read as follows:

    … (Ref: Para. A1613–A22A17, A2419–A25A20)

    … (Ref: Para. A2318)

48.               Existing paragraph 12 is amended to read as follows:

    … (Ref: Para. A26–A28A21–A23)

49.               Existing paragraph 14 is amended to read as follows:

    … (Ref: Para. A29A24)

50.               Existing paragraph 15 is amended to read as follows:

    … (Ref: Para. A30A25)

    …

51.               Existing paragraph A11 is amended to read as follows:

    In some jurisdictions, lLaw or regulation may restrict the auditor's communication of certain misstatements to management, or others, within the entity.  For example, Llaws or regulations may specifically prohibit a communication, or other action, that might prejudice an investigation by an appropriate authority into an actual, or suspected, illegal act, including alerting the entity, for example, when the auditor is required to report identified or suspected non‑compliance with law or regulation to an appropriate authority pursuant to anti‑money laundering legislation.  In somethese circumstances, potential conflicts between the auditor's obligations of confidentiality and obligations to communicate may be complex.  In such cases,the issues considered by the auditor may be complex[*] and the auditor may consider seekingit appropriate to obtain legal advice.

52.               Existing paragraph A20 is amended to read as follows:

Determining whether a classification misstatement is material involves the evaluation of qualitative considerations, such as the effect of the classification misstatement on debt or other contractual covenants, the effect on individual line items or sub‑totals, or the effect on key ratios.  There may be circumstances where the auditor concludes that a classification misstatement is not material in the context of the financial report as a whole, even though it may exceed the materiality level or levels applied in evaluating other misstatements.  For example, a misclassification between balance sheet line items may not be considered material in the context of the financial report as a whole when the amount of the misclassification is small in relation to the size of the related balance sheet line items and the misclassification does not affect the income statement or any key ratios.  Depending