Document ID: chunk:federal_register_of_legislation:F2020L00885:body:0:p7
Version: federal_register_of_legislation:F2020L00885
Segment Type: other
Provision Reference: 
Character Range: 18538–21677

team have breached not complied with relevant ethical requirements, ...

Amendments to ASA 220

20.               Paragraph 9 is amended as follows:

Throughout the audit engagement, the engagement partner shall remain alert, through observation and making enquiries as necessary, for evidence of breaches of non-compliance with relevant ethical requirements by members of the engagement team. (Ref: Para. A4-A5)

21.               Paragraph 10 is amended as follows:

If matters come to the engagement partner's attention through the firm's system of quality control or otherwise that indicate that members of the engagement team have not complied with breached relevant ethical requirements, the engagement partner, in consultation with others in the firm, shall determine the appropriate action. (Ref: Para. A5)

22.               Paragraph 11 is amended as follows:

…

(a)     Obtain relevant information from the firm and, where applicable, network firms, to identify and evaluate circumstances and relationships that create threats to independence;

(b)     Evaluate information on identified breaches, if any, of the firm's independence policies and procedures to determine whether they create a threat to independence for the audit engagement; and

(c)      Evaluate whether the identified threats are at an acceptable level; and

       (d)    Take appropriate action to address the threats that are not at an acceptable level by eliminating the circumstances that create the threats, applying safeguards to reduce threats to an acceptable level, or withdrawing eliminate such threats or reduce them to an acceptable level by applying safeguards, or, if considered appropriate, to withdraw from the audit engagement, where withdrawal is possible under applicable law or regulation. The engagement partner shall promptly report to the firm any inability to resolve the matter for appropriate action. (Ref: Para. Aus A5.1, A6-A7)

23.               The title of paragraph A6 is amended as follows:

Threats to Independence (Ref: Para. 11 (cd))

24.               Paragraph A6 is amended as follows:

The engagement partner may identify a threat to independence regarding the audit engagement that safeguards may not be able to eliminate or reduce toat an acceptable level. In that case, as required by paragraph 11(cd), the engagement partner reports to the relevant person(s) within the firm to determine the appropriate action, which may include eliminating the circumstance that creates activity or interest that creates the threat, applying safeguards to reduce the threat to an acceptable level or withdrawing from the audit engagement, where withdrawal is possible under applicable law or regulation.

25.               Paragraph A9 is amended as follows:

… the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) …

26.               Footnotes 6 and 7, referenced to paragraph A9, are amended as follows:

       6.        See, for example, paragraph R320.8 Sections 210.14 of APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code).