Document ID: chunk:federal_register_of_legislation:F2019L00016:reg:20:p3
Version: federal_register_of_legislation:F2019L00016
Segment Type: reg
Provision Reference: reg 20 (pt 3/9)
Character Range: 16649–19765

due to fraud in accordance with this Auditing Standard may be carried out in conjunction with the review required by ASA 540.

15.               Existing footnote 5 of this Auditing Standard is amended to read as follows:

See ASA 200, paragraph 15.

16.               Existing footnote 20 is amended to read as follows:

See ASA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, paragraph 14 9.

17.               Existing footnote * in paragraph Aus A67.1 is amended to read as follows:

See ASIC Regulatory Guide 34 Auditor's obligations: reporting to ASIC (December 2007 May 2013), that which provides guidance to help auditors comply with their obligations, under sections 311, 601HG and 990K of the Corporations Act 2001, to report contraventions and suspected contraventions of the Act to ASIC.

Amendments to ASA 260

18.               Existing paragraph A19 is amended to read as follows:

Financial reporting frameworks ordinarily allow for the entity to make accounting estimates, and judgements about accounting policies and financial report disclosures, for example, in relation to the use of key assumptions in the development of accounting estimates for which there is significant measurement uncertainty. In addition, law, regulation or financial reporting frameworks may require disclosure of a summary of significant accounting policies or make reference to "critical accounting estimates" or "critical accounting policies and practices" to identify and provide additional information to users about the most difficult, subjective or complex judgements made by management in preparing the financial report.

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

As a result, the auditor's views on the subjective aspects of the financial report may be particularly relevant to those charged with governance in discharging their responsibilities for oversight of the financial reporting process. For example, in relation to the matters described in paragraph A19, those charged with governance may be interested in the auditor's evaluation of the adequacy of disclosures of the estimation uncertainty relating to accounting estimates that give rise to significant risks. views on the degree to which complexity, subjectivity or other inherent risk factors affect the selection or application of the methods, assumptions and data used in making a significant accounting estimate, as well as the auditor's evaluation of whether management's point estimate and related disclosures in the financial report are reasonable in the context of the applicable financial reporting framework.  Open and constructive communication about significant qualitative aspects of the entity's accounting practices also may include comment on the acceptability of significant accounting practices and on the quality of the disclosures. When applicable, this may include whether a significant accounting practice of the entity relating to accounting estimates is considered by the auditor not to be most appropriate to the particular circumstances of