Document ID: chunk:federal_register_of_legislation:F2025L00105:body:0:p4
Version: federal_register_of_legislation:F2025L00105
Segment Type: other
Provision Reference: 
Character Range: 9415–12634

A36 is inserted following existing paragraph A35:

Relevant ethical requirements may:

(a)    [Deleted by the AUASB. Refer to Aus A36.1(a).]

             Aus A36.1(a)  Establish independence requirements that are specific to audits of financial reports of certain entities specified 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) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.

(b)    Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[29]

    ASA 260 sets out requirements and guidance about the auditor's communication with those charged with governance, which includes communications for these cases.[30]

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

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

Amendments to ASA 700 Appendix 1: [Aus] Illustration 1A and [Aus] Illustration 2A

 1.                The fifth point of [Aus] Illustration 1A and [Aus] Illustration 2A are amended as follows:

                         The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.

 1.                [Aus] Illustration 1A: Example Auditor's Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:

INDEPENDENT AUDITOR'S REPORT

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards.  Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report.  We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards