Document ID: chunk:federal_register_of_legislation:F2021L01525:body:0:p5
Version: federal_register_of_legislation:F2021L01525
Segment Type: other
Provision Reference: 
Character Range: 12565–15674

such as ASA 315, why a procedure is required.

           * Include examples of procedures that may be appropriate in the circumstances. In some Auditing Standards ASAs, such as ASA 315, examples are presented in boxes.

…

16.               Existing paragraph A69 is amended to read as follows:

Scalability considerations have been included in some Auditing Standards ASAs (e.g., ASA 315), illustrating the application of the requirements to all entities regardless of whether their nature and circumstances are less complex or more complex. Less complex entities are entities for which the characteristics in paragraph A71 A66 may apply.

17.               Existing paragraph A73 is amended to read as follows:

The considerations specific to "automated tools and techniques" included in some Auditing Standards ASAs (for example, ASA 315) have been developed to explain how the auditor may apply certain requirements when using automated tools and techniques in performing audit procedures.

Amendments to ASA 240

18.               Existing paragraph 17 is amended to read as follows:

When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and the entity's system of internal control, required by ASA 315, the auditor shall perform the procedures in paragraphs 18-25 23-43 of this Auditing Standard to obtain information for use in identifying the risks of material misstatement due to fraud.

Amendments to ASA 330

19.               As a result of the paragraph insertions by ASA 2020-1 Amendments to Australian Auditing Standards, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.

Amendments to ASA 502

20.               The existing paragraph following existing sub-heading "Effective Date" is re-numbered and as a result, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.

21.               Existing paragraph 5 is amended to read as follows:

If:

(a)                management refuses to give the auditor permission to communicate or meet with the entity's external legal counsel, or the entity's external legal counsel refuses to respond appropriately to the letter of enquiry, or is prohibited from responding; and (Ref: Para. Aus A8.7-Aus A8.8)

(b)                …

Amendments to ASA 540

22.               Existing paragraph 4 is amended to read as follows:

This Auditing Standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level.5  In the context of ASA 540 (Revised), and depending on the nature of a particular accounting estimate, the susceptibility of an assertion to a misstatement that could be material may be subject to or affected by estimation uncertainty, complexity, subjectivity or other inherent risk factors, and the interrelationship among them. As explained in ASA 200,6  inherent risk is higher for some assertions and related classes