Document ID: chunk:federal_register_of_legislation:F2019L00016:reg:20:p2
Version: federal_register_of_legislation:F2019L00016
Segment Type: reg
Provision Reference: reg 20 (pt 2/9)
Character Range: 13800–16894

Auditing Standards may be evidenced in a number of ways within the audit documentation. This may include documentation of the engagement partner's timely involvement in aspects of the audit, such as participation in the team discussions required by ASA 315.5

12.               Existing paragraph A10 of this Auditing Standard is amended to read as follows:

Some examples of circumstances in which, in accordance with paragraph 8, it is appropriate to prepare audit documentation relating to the use of professional judgement include, where the matters and judgements are significant:

           * The rationale for the auditor's conclusion when a requirement provides that the auditor 'shall consider' certain information or factors, and that consideration is significant in the context of the particular engagement.

           * The basis for the auditor's conclusion on the reasonableness of areas of subjective judgements made by management(for example, the reasonableness of significant accounting estimates).

           * The basis for the auditor's evaluation of whether an accounting estimate and related disclosures are reasonable in the context of the applicable financial reporting framework, or are misstated.

           * The basis for the auditor's conclusions about the authenticity of a document when further investigation (such as making appropriate use of an expert or of confirmation procedures) is undertaken in response to conditions identified during the audit that caused the auditor to believe that the document may not be authentic.

           * When ASA 701 applies,7 the auditor's determination of the key audit matters or the determination that there are no key audit matters to be communicated.

Amendments to ASA 230 Appendix 1

13.               The eleventh point is amended to read as follows:

           * ASA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures – paragraph 3923

Amendments to ASA 240

14.               Existing paragraph A48 is amended to read as follows:

A retrospective review is also required by ASA 540.20 That review is conducted as a risk assessment procedure to obtain information regarding the effectiveness of management's previous prior period estimation process accounting estimates, audit evidence about the outcome, or where applicable, their subsequent re‑estimation of prior period accounting estimates that is pertinent to making to assist in identifying and assessing the risks of material misstatement in the current period accounting estimates, and audit evidence of matters, such as estimation uncertainty, that may be required to be disclosed in the financial report. As a practical matter, the auditor's review of management judgements and assumptions for biases that could represent a risk of material misstatement 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