Document ID: chunk:federal_register_of_legislation:F2017C00907:reg:15:p2
Version: federal_register_of_legislation:F2017C00907
Segment Type: reg
Provision Reference: reg 15 (pt 2/12)
Character Range: 11603–14866

applies, as appropriate, to an audit of other historical financial information.

Operative Date

Aus 0.3 This Auditing Standard is operative for financial reporting periods commencing on or after 1 January 2010.  [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]

Introduction

Scope of this Auditing Standard

      1. This Auditing Standard deals with the auditor's responsibility to evaluate the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial report.  ASA 700 deals with the auditor's responsibility, in forming an opinion on the financial report, to conclude whether reasonable assurance has been obtained about whether the financial report as a whole is free from material misstatement.  The auditor's conclusion required by ASA 700 takes into account the auditor's evaluation of uncorrected misstatements, if any, on the financial report, in accordance with this Auditing Standard.[1]  ASA 320[2] deals with the auditor's responsibility to apply the concept of materiality appropriately in planning and performing an audit of a financial report.

Effective Date

2.                   [Deleted by the AUASB.  Refer Aus 0.3]

Objective

3.                   The objective of the auditor is to evaluate:

(a)                The effect of identified misstatements on the audit; and

(b)                The effect of uncorrected misstatements, if any, on the financial report.

Definitions

4.                   For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

(a)                Misstatement means a difference between the reported amount, classification, presentation, or disclosure of a financial report item and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework.  Misstatements can arise from error or fraud. (Ref: Para. A1)

         When the auditor expresses an opinion on whether the financial report is presented fairly, in all material respects, or gives a true and fair view, misstatements also include those adjustments of amounts, classifications, presentation, or disclosures that, in the auditor's judgement, are necessary for the financial report to be presented fairly, in all material respects, or to give a true and fair view.

(b)                Uncorrected misstatements means misstatements that the auditor has accumulated during the audit and that have not been corrected.

Requirements

Accumulation of Identified Misstatements

5.                   The auditor shall accumulate misstatements identified during the audit, other than those that are clearly trivial. (Ref: Para. A2‑A6)

Consideration of Identified Misstatements as the Audit Progresses

6.                   The auditor shall determine whether the overall audit strategy and audit plan need to be revised if:

(a)                The nature of identified misstatements and the circumstances of their occurrence indicate that other misstatements may exist that, when aggregated with misstatements accumulated during the audit, could be material; or (Ref: Para. A7)

(b)                The aggregate