Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p65
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 217090–220669

The requirements of this ASSA and any other relevant ASSAs are designed to enable the practitioner to achieve the objectives specified in the ASSA, and thereby the overall objectives of the practitioner. Accordingly, other than in exceptional circumstances, the practitioner is required to comply with each requirement that is relevant in the circumstances of the assurance engagement.

Documentation of a Departure from a Relevant Requirement (Ref: Para. 24)

 1.          The engagement documentation requirements apply only to requirements that are relevant in the circumstances. A requirement is not relevant only in the cases when the requirement is conditional and the condition does not exist (for example, the requirement to modify the practitioner's conclusion when there is an inability to obtain sufficient appropriate evidence, and there is no such inability).

Acceptance and Continuance of the Assurance Engagement

Relevant Ethical Requirements, Including Those Related to Independence (Ref: Para. 26(a), 34–37)

 1.          The Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of an assurance practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The Code also specifies the required approach for a professional accountant to comply with the fundamental principles and, when applicable, the Australian Independence Standards. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.

 2.          The Code provides a conceptual framework which an assurance practitioner is required to apply when addressing threats to compliance with the fundamental principles, including:

         1.                 Identifying threats to compliance with the fundamental principles. Threats fall into one or more of the following categories:

                 1.                  Self-interest;

                 2.                Self-review;

                 3.              Advocacy;

                 4.              Familiarity; and

                 5.                 Intimidation;

         2.                 Evaluating whether the threats identified are at an acceptable level; and

         3.                 If the identified threats to compliance with the fundamental principles are not at an acceptable level, addressing them by eliminating the circumstances that create the threats, applying safeguards to reduce threats to an acceptable level, or withdrawing from the engagement, where withdrawal is possible under applicable law or regulation.

 3.          The Code sets out requirements and application material on various topics that may give rise to potential threats to compliance, including:

           * Conflicts of interest.

           * Professional appointments.

           * Second opinions.

           * Fees and other types of remuneration.

           * Inducements, including gifts and hospitality.

           * Custody of client assets.

           * Responding to non-compliance with laws and regulations.

 1.          The Code defines independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability