Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p49
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
Provision Reference: 
Character Range: 136938–140063

understanding of the entity and its environment, the applicable financial reporting framework, and including the entity's system of internal control, obtained in accordance with ASA 315.[11] ASA 315 sets out the auditor's required understanding, which includes such matters as obtaining an understanding of:

(a)                The entity's organisational structure, ownership and governance, and its business model, including the extent to which the business model integrates the use of IT;

(b)                The rRelevant industry, regulatory, and other external factors;

(c)                The relevant measures used, internally and externally, to assess measurement and review of the entity's financial performance; and

     (e)   The nature of the entity;

    (f)    The entity's selection and application of accounting policies;

    (g)   The entity's objectives and strategies;

211.           Existing paragraph A51 is amended to read as follows:

In reading the other information, the auditor may become aware of new information that has implications for:

           * The auditor's understanding of the entity and its environment, the financial reporting framework and the entity's system of internal control and, accordingly, may indicate the need to revise the auditor's risk assessment.[13]

Amendments to ASA 800

212.           Existing footnote 5 in paragraph 10 is amended to read as follows:

See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, paragraph 11(c)19(b).

Commencement of the legislative instrument

For legal purposes, each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced in accordance with column 2 of the table.  Any other statement in column 2 has effect according to its terms.
Commencement information
Column 1                      Column 2            Column 3
Provisions                    Commencement        Date/Details
The whole of this instrument  14 December 2021.   14 December 2021.

Note:  This table relates only to the provisions of this instrument as originally made.  It will not be amended to deal with any later amendments of this instrument.
[19]  See ASA 540315 Auditing Accounting Estimates and Disclosures, paragraph 16 Identifying and Assessing the Risks of Material Misstatement
21 See ASA 330, paragraph 6
[15]  See ASA 315, paragraph A9159 and Appendix 31
[10]  See ASA 315, paragraph 26(a)(i) and 26(d)
[13]  See ASA 315, paragraph 3832
[18]  See ASA 260, paragraphs A1–A8, discuss with whom the auditor communicates when the entity's governance structure is not well defined.
[20]   See ASA 315, paragraph 12(f)
[21]   See ASA 315, paragraph 21
[1]  See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment,
paragraphs 412 and 1221.
[4]  See ASA 315, paragraph 1221. Appendix 5Paragraphs A60-A65 provide guidance on controls relevant to the audit.
[5]  See ASA 315, paragraph A66A175.
[11]   See ASA 315, paragraph 26(a)
[2]  See ASA 315, paragraphs 31