{"id":"F2021L01300","name":"Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events","slug":"auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":102097,"registerId":"commonwealth-F2021L01300-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Obtaining a Copy of this Auditing Standa","sectionType":"section","heading":"Obtaining a Copy of this Auditing Standard","content":"##### Obtaining a Copy of this Auditing Standard\n\nThis Auditing Standard is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au","sortOrder":0},{"sectionNumber":"Contact Details","sectionType":"section","heading":"Contact Details","content":"##### Contact Details\n\n| Auditing and Assurance Standards BoardPodium Level 14, 530 Collins StreetMelbourne Victoria 3000AUSTRALIA | Phone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204, Collins Street WestMelbourne Victoria 8007AUSTRALIA |\n| --------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":1},{"sectionNumber":"COPYRIGHT","sectionType":"section","heading":"COPYRIGHT","content":"##### COPYRIGHT\n\n© 2021 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).\n\nRequests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to [enquiries@auasb.gov.au](mailto:enquiries@auasb.gov.au). Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.\n\nISSN 1833-4393","sortOrder":2},{"sectionNumber":"CONTENTS","sectionType":"part","heading":"CONTENTS","content":"# CONTENTS\n\nPREFACE\n\nAUTHORITY STATEMENT\n\nCONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING\n\nParagraphs\n\nApplication...............................................................1-2\n\nOperative Date..............................................................3\n\nIntroduction\n\nScope of this Auditing Standard..................................................4\n\nObjective..................................................................5\n\nDefinition..................................................................6\n\nAmendments to Auditing Standard..............................................7\n\nAmendments to ASA 560.....................................................8-12","sortOrder":3},{"sectionNumber":"preface","sectionType":"part","heading":"preface","content":"##### Obtaining a Copy of this Auditing Standard\n\nThis Auditing Standard is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au\n\n##### Contact Details\n\n| Auditing and Assurance Standards BoardPodium Level 14, 530 Collins StreetMelbourne Victoria 3000AUSTRALIA | Phone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204, Collins Street WestMelbourne Victoria 8007AUSTRALIA |\n| --------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------- |\n\n##### COPYRIGHT\n\n© 2021 Commonwealth of Australia. The text, graphics and layout of this Auditing Standard are protected by Australian copyright law and the comparable law of other countries. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non‑commercial use subject to the inclusion of an acknowledgment of the source as being the Australian Auditing and Assurance Standards Board (AUASB).\n\nRequests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to [enquiries@auasb.gov.au](mailto:enquiries@auasb.gov.au). Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.\n\nISSN 1833-4393\n\n# CONTENTS\n\nPREFACE\n\nAUTHORITY STATEMENT\n\nCONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING\n\nParagraphs\n\nApplication...............................................................1-2\n\nOperative Date..............................................................3\n\nIntroduction\n\nScope of this Auditing Standard..................................................4\n\nObjective..................................................................5\n\nDefinition..................................................................6\n\nAmendments to Auditing Standard..............................................7\n\nAmendments to ASA 560.....................................................8-12\n\n  \n\n# preface\n\n#### Reasons for Issuing ASA 2021-2\n\nThe AUASB issues Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.\n\nThe AUASB is a non-corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.\n\nUnder the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.\n\n#### Main Features\n\nThis Auditing Standard makes amendments to the requirements and application and other explanatory material of the following Auditing Standard:\n\nASA 560 Subsequent Events (Issued October 2009 and amended to December 2015)\n\nThis Auditing Standard is being amended to achieve harmonisation with ISA (NZ) 560 Subsequent Events which was amended in February 2020. This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.\n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.\n\nDated: 7 September 2021 W R Edge  \nChair - AUASB\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).","sortOrder":4},{"sectionNumber":"Reasons for Issuing ASA 2021-2","sectionType":"subdivision","heading":"Reasons for Issuing ASA 2021-2","content":"#### Reasons for Issuing ASA 2021-2\n\nThe AUASB issues Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.\n\nThe AUASB is a non-corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.\n\nUnder the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.","sortOrder":5},{"sectionNumber":"Main Features","sectionType":"subdivision","heading":"Main Features","content":"#### Main Features\n\nThis Auditing Standard makes amendments to the requirements and application and other explanatory material of the following Auditing Standard:\n\nASA 560 Subsequent Events (Issued October 2009 and amended to December 2015)\n\nThis Auditing Standard is being amended to achieve harmonisation with ISA (NZ) 560 Subsequent Events which was amended in February 2020. This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.\n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.\n\nDated: 7 September 2021 W R Edge  \nChair - AUASB\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).","sortOrder":6},{"sectionNumber":"AUTHORITY STATEMENT","sectionType":"part","heading":"AUTHORITY STATEMENT","content":"## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-2 Amendments to Australian Auditing Standard ASA 560 Subsequent Events pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.","sortOrder":7},{"sectionNumber":"Conformity with International Standards ","sectionType":"section","heading":"Conformity with International Standards on Auditing","content":"##### Conformity with International Standards on Auditing\n\nThis Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).","sortOrder":8},{"sectionNumber":"Auditing Standard ASA 2021-2","sectionType":"part","heading":"Auditing Standard ASA 2021-2","content":"## Auditing Standard ASA 2021-2\n\n### Amendments to Australian Auditing Standard ASA 560 Subsequent Events\n\n##### Application\n\n1.  This Auditing Standard applies to:\n\n-   an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001; and\n-   an audit of a financial report, or a complete set of financial statements, for any other purpose.\n\n1.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.\n\n##### Operative Date\n\n1.  This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021, with early adoption permitted.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to make amendments to Australian Auditing Standard ASA 560 Subsequent Events (Issued October 2009 and amended to December 2015).\n\n##### Definition\n\n1.  For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.\n\n##### Amendments to Auditing Standard\n\n1.  This Standard uses underlining, striking out and other typographical material to identify the amendments to Auditing Standards, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.\n\n###### Amendments to ASA 560\n\n1.  The existing text of paragraph 14 is deleted and amended to read as follows:\n\n\\[Deleted by the AUASB. Refer Aus 14.1.\\]\n\n1.  The following new paragraph Aus 14.1 is inserted following existing paragraph 14 of this Auditing Standard:\n\nAfter the financial report has been issued, the auditor has no obligation to perform any audit procedures regarding such financial report. However, if, after the financial report has been issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall, within a reasonable period of time:\n\n1.  Discuss the matter with management and, where appropriate, those charged with governance;\n2.  Determine whether the financial report needs amendment and; if so,\n3.  Enquire how management intends to address the matter in the financial report.\n\n1.  Existing paragraph 17 is amended to read as follows:\n\nIf management, or those charged with governance, do not take the necessary steps to ensure that anyone in receipt of the previously issued financial report is informed of the situation and does not amend the financial report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,7 those charged with governance, that the auditor will seek to prevent future reliance on the auditor’s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor’s report. (Ref: Para. A20\\-Aus A20.1)\n\n1.  The following new paragraph Aus A20.1 is inserted following existing paragraph A20 of this Auditing Standard:\n\nIn addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:\n\n1.  Notifying management and those charged with governance that the auditor’s report must no longer be associated with the financial report.\n2.  If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor’s report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.\n3.  Notifying users of the financial report that the auditor’s report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.\n\n1.  As a result of the amendments above, the “Conformity with International Standards on Auditing” section of this Auditing Standard will be updated to reflect the new paragraphs inserted.","sortOrder":9},{"sectionNumber":"Amendments to Australian Auditing Standa","sectionType":"division","heading":"Amendments to Australian Auditing Standard ASA 560 Subsequent Events","content":"## Auditing Standard ASA 2021-2\n\n### Amendments to Australian Auditing Standard ASA 560 Subsequent Events\n\n##### Application\n\n1.  This Auditing Standard applies to:\n\n-   an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001; and\n-   an audit of a financial report, or a complete set of financial statements, for any other purpose.\n\n1.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.\n\n##### Operative Date\n\n1.  This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021, with early adoption permitted.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to make amendments to Australian Auditing Standard ASA 560 Subsequent Events (Issued October 2009 and amended to December 2015).\n\n##### Definition\n\n1.  For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.\n\n##### Amendments to Auditing Standard\n\n1.  This Standard uses underlining, striking out and other typographical material to identify the amendments to Auditing Standards, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.\n\n###### Amendments to ASA 560\n\n1.  The existing text of paragraph 14 is deleted and amended to read as follows:\n\n\\[Deleted by the AUASB. Refer Aus 14.1.\\]\n\n1.  The following new paragraph Aus 14.1 is inserted following existing paragraph 14 of this Auditing Standard:\n\nAfter the financial report has been issued, the auditor has no obligation to perform any audit procedures regarding such financial report. However, if, after the financial report has been issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall, within a reasonable period of time:\n\n1.  Discuss the matter with management and, where appropriate, those charged with governance;\n2.  Determine whether the financial report needs amendment and; if so,\n3.  Enquire how management intends to address the matter in the financial report.\n\n1.  Existing paragraph 17 is amended to read as follows:\n\nIf management, or those charged with governance, do not take the necessary steps to ensure that anyone in receipt of the previously issued financial report is informed of the situation and does not amend the financial report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,7 those charged with governance, that the auditor will seek to prevent future reliance on the auditor’s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor’s report. (Ref: Para. A20\\-Aus A20.1)\n\n1.  The following new paragraph Aus A20.1 is inserted following existing paragraph A20 of this Auditing Standard:\n\nIn addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:\n\n1.  Notifying management and those charged with governance that the auditor’s report must no longer be associated with the financial report.\n2.  If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor’s report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.\n3.  Notifying users of the financial report that the auditor’s report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.\n\n1.  As a result of the amendments above, the “Conformity with International Standards on Auditing” section of this Auditing Standard will be updated to reflect the new paragraphs inserted.","sortOrder":10},{"sectionNumber":"Application","sectionType":"section","heading":"Application","content":"##### Application\n\n1.  This Auditing Standard applies to:\n\n-   an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001; and\n-   an audit of a financial report, or a complete set of financial statements, for any other purpose.\n\n1.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.","sortOrder":11},{"sectionNumber":"Operative Date","sectionType":"section","heading":"Operative Date","content":"##### Operative Date\n\n1.  This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021, with early adoption permitted.","sortOrder":12},{"sectionNumber":"Introduction","sectionType":"section","heading":"Introduction","content":"## Auditing Standard ASA 2021-2\n\n### Amendments to Australian Auditing Standard ASA 560 Subsequent Events\n\n##### Application\n\n1.  This Auditing Standard applies to:\n\n-   an audit of a financial report for a financial year, or an audit of a financial report for a half-year, in accordance with the Corporations Act 2001; and\n-   an audit of a financial report, or a complete set of financial statements, for any other purpose.\n\n1.  This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.\n\n##### Operative Date\n\n1.  This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021, with early adoption permitted.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to make amendments to Australian Auditing Standard ASA 560 Subsequent Events (Issued October 2009 and amended to December 2015).\n\n##### Definition\n\n1.  For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.\n\n##### Amendments to Auditing Standard\n\n1.  This Standard uses underlining, striking out and other typographical material to identify the amendments to Auditing Standards, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.\n\n###### Amendments to ASA 560\n\n1.  The existing text of paragraph 14 is deleted and amended to read as follows:\n\n\\[Deleted by the AUASB. Refer Aus 14.1.\\]\n\n1.  The following new paragraph Aus 14.1 is inserted following existing paragraph 14 of this Auditing Standard:\n\nAfter the financial report has been issued, the auditor has no obligation to perform any audit procedures regarding such financial report. However, if, after the financial report has been issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall, within a reasonable period of time:\n\n1.  Discuss the matter with management and, where appropriate, those charged with governance;\n2.  Determine whether the financial report needs amendment and; if so,\n3.  Enquire how management intends to address the matter in the financial report.\n\n1.  Existing paragraph 17 is amended to read as follows:\n\nIf management, or those charged with governance, do not take the necessary steps to ensure that anyone in receipt of the previously issued financial report is informed of the situation and does not amend the financial report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,7 those charged with governance, that the auditor will seek to prevent future reliance on the auditor’s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor’s report. (Ref: Para. A20\\-Aus A20.1)\n\n1.  The following new paragraph Aus A20.1 is inserted following existing paragraph A20 of this Auditing Standard:\n\nIn addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:\n\n1.  Notifying management and those charged with governance that the auditor’s report must no longer be associated with the financial report.\n2.  If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor’s report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.\n3.  Notifying users of the financial report that the auditor’s report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.\n\n1.  As a result of the amendments above, the “Conformity with International Standards on Auditing” section of this Auditing Standard will be updated to reflect the new paragraphs inserted.","sortOrder":13},{"sectionNumber":"Scope of this Auditing Standard","sectionType":"section","heading":"Scope of this Auditing Standard","content":"###### Scope of this Auditing Standard\n\n1.  This Auditing Standard makes amendments to Australian Auditing Standard ASA 560 Subsequent Events made under Section 336 of the Corporations Act 2001 to clarify the timing of communications and possible actions the auditor may take when facts become known to the auditor after the financial report has been issued that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report.","sortOrder":14},{"sectionNumber":"Objective","sectionType":"section","heading":"Objective","content":"##### Objective\n\n1.  The objective of this Auditing Standard is to make amendments to Australian Auditing Standard ASA 560 Subsequent Events (Issued October 2009 and amended to December 2015).","sortOrder":15},{"sectionNumber":"Definition","sectionType":"section","heading":"Definition","content":"##### Definition\n\n1.  For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.","sortOrder":16},{"sectionNumber":"Amendments to Auditing Standard","sectionType":"section","heading":"Amendments to Auditing Standard","content":"##### Amendments to Auditing Standard\n\n1.  This Standard uses underlining, striking out and other typographical material to identify the amendments to Auditing Standards, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.","sortOrder":17},{"sectionNumber":"Amendments to ASA 560","sectionType":"section","heading":"Amendments to ASA 560","content":"###### Amendments to ASA 560\n\n1.  The existing text of paragraph 14 is deleted and amended to read as follows:\n\n\\[Deleted by the AUASB. Refer Aus 14.1.\\]\n\n1.  The following new paragraph Aus 14.1 is inserted following existing paragraph 14 of this Auditing Standard:\n\nAfter the financial report has been issued, the auditor has no obligation to perform any audit procedures regarding such financial report. However, if, after the financial report has been issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall, within a reasonable period of time:\n\n1.  Discuss the matter with management and, where appropriate, those charged with governance;\n2.  Determine whether the financial report needs amendment and; if so,\n3.  Enquire how management intends to address the matter in the financial report.\n\n1.  Existing paragraph 17 is amended to read as follows:\n\nIf management, or those charged with governance, do not take the necessary steps to ensure that anyone in receipt of the previously issued financial report is informed of the situation and does not amend the financial report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,7 those charged with governance, that the auditor will seek to prevent future reliance on the auditor’s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor’s report. (Ref: Para. A20\\-Aus A20.1)\n\n1.  The following new paragraph Aus A20.1 is inserted following existing paragraph A20 of this Auditing Standard:\n\nIn addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:\n\n1.  Notifying management and those charged with governance that the auditor’s report must no longer be associated with the financial report.\n2.  If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor’s report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.\n3.  Notifying users of the financial report that the auditor’s report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.\n\n1.  As a result of the amendments above, the “Conformity with International Standards on Auditing” section of this Auditing Standard will be updated to reflect the new paragraphs inserted.","sortOrder":18}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"These amendments clarify and operationalise auditor conduct after a financial report has been issued when new facts come to light. They do not materially expand the standard’s subject‑matter coverage (it remains focused on subsequent events and auditor responses) or add new categories of audits covered. The change is a refinement of post‑issuance responsibilities and communication options rather than a significant broadening beyond the original purpose of ASA 560."},"complexity_factors":["Short, focused instrument (three principal changes: new Aus 14.1, amended para 17, new Aus A20.1).","Operative date and application are simple and specific (operative from periods commencing on or after 15 December 2021).","Few defined terms introduced (no new definitions).","Uses open‑ended qualifiers — \"within a reasonable period of time\" and \"appropriate action\" — which increase interpretive discretion.","Cross‑references to existing ASA 560 paragraphs (para A20) and to external materials (AUASB Glossary, Corporations Act s.336) but limited in number.","Contains non‑exhaustive examples of possible actions (Aus A20.1) rather than rigid prescriptive lists, lowering structural complexity but increasing judgement-based complexity."],"plain_english_summary":"**What this instrument does (mechanics)**\n\n- It amends Australian Auditing Standard ASA 560 (Subsequent Events) by inserting two new Australian paragraphs (Aus 14.1 and Aus A20.1) and amending an existing paragraph (para 17). The amendments are operative for reporting periods commencing on or after 15 December 2021 (early adoption permitted). (Operative date paragraph)\n\n- The key change (Aus 14.1) says that after an auditor’s report has been issued the auditor has no ongoing obligation to perform further audit procedures on that issued report, but if the auditor later becomes aware of a fact that, had it been known at the date of the auditor’s report, may have caused the auditor to amend their report, then the auditor must, within a reasonable period:\n  - discuss the matter with management and, where appropriate, those charged with governance (for example, the board or audit committee);\n  - decide whether the financial report needs to be amended; and\n  - if an amendment is needed, ask management how they intend to address the matter in the financial report. (Aus 14.1)\n\n- The amended para 17 makes clear that if management or those charged with governance do not take steps to inform anyone who received the previously issued financial report or do not amend the report when the auditor believes amendments are needed, the auditor must notify management and (unless all of those charged with governance are involved in managing the entity) notify those charged with governance that the auditor will seek to prevent future reliance on the auditor’s report. If the entity still does not act, the auditor must take appropriate steps to try to prevent people relying on the auditor’s report. (Para 17)\n\n- The new Aus A20.1 lists examples of actions the auditor might consider (in addition to seeking legal advice):\n  1. telling management and those charged with governance the auditor’s report must no longer be associated with the financial report;  \n  2. notifying the relevant authority (if applicable) and asking that authority to make suitable disclosure;  \n  3. notifying users of the financial report directly or by public notice that the auditor’s report should no longer be relied upon. (Aus A20.1)\n\n**Who it affects**\n\n- Auditors performing audits of financial reports for entities covered by the Corporations Act 2001 (annual and half‑year audits) and auditors of other financial statements or historical financial information. (Application paragraphs)\n\n- Management and those charged with governance of audited entities, because they are required to respond to auditor enquiries and, where necessary, amend financial reports or inform recipients of previously issued reports.\n\n- Users of financial reports (investors, creditors, regulators and the public) indirectly, because auditors now have a clearer set of steps to follow where post‑report facts surface that could have affected the auditor’s opinion.\n\n**Why it matters (stated purpose and an evidence‑based check)**\n\n- The AUASB states the purpose is to clarify the timing of communications and possible actions an auditor may take when facts become known after the financial report has been issued that may have required an amendment to the auditor’s report. The instrument also aims to harmonise the ASA with ISA (NZ) 560. (Preface, Main Features)\n\n- Practical implications and trade‑offs:\n  - Costs and who pays: the immediate compliance cost falls on auditors (time to investigate and act) and on management/boards (time, potential legal and disclosure costs to amend or reissue reports). If public notification or formal involvement of regulators is needed, there may be additional legal and communications costs for the entity and potentially reputational costs for both the entity and the auditor.\n  - Incentives: auditors are required to take steps once they learn of relevant facts; this raises the incentive for auditors to monitor post‑issuance information that comes to their attention and to document decisions. Management faces stronger pressure to amend previously issued reports when warranted or to notify recipients.\n  - Discretion and uncertainty: the standard uses open‑ended terms—\"within a reasonable period of time\" and \"appropriate action\"—which leave judgment to the auditor. That preserves professional judgement but increases legal and implementation risk because parties may disagree about whether the auditor acted promptly or appropriately.\n  - Opportunity costs and administrative burden: auditors and entities must allocate resources to investigate, consult (including obtaining legal advice), and possibly notify authorities or the public. For smaller audits, these follow-up actions may be disproportionately costly relative to the size of the entity.\n  - Effects on private choice and markets: the amendments do not change the content of audit opinions, ownership rules, competition or prices directly. They do, however, raise the expected post‑report conduct of auditors and therefore may increase audit firms’ operational costs (which can feed into audit fees) and could influence audit firms’ risk management processes.\n\n**Who decides and what changes in behaviour**\n\n- Who decides: the auditor decides whether to investigate and take follow‑up steps once a relevant fact is known; management decides whether to amend the financial report and how to notify recipients; relevant authorities decide whether to act on any notification the auditor makes.\n\n- Behavioural changes: auditors will be more likely to document and act on post‑report facts that could affect their opinion; management/boards will be required to respond to auditor enquiries and either amend reports or explain why they will not; auditors may, in some cases, seek legal advice and pursue public notification or regulator involvement to prevent reliance on an auditor’s report.\n\n**Concrete mechanisms that limit or expand responsibilities**\n\n- The amendment explicitly limits an auditor’s continuing procedural obligation after report issuance (no general duty to perform additional audit procedures) but creates a specific duty to act if the auditor later learns of facts that might have led to an amended auditor’s report. (Aus 14.1)\n\n- The standard provides a non‑exhaustive list of follow‑up actions (Aus A20.1) but leaves the final choice of action to auditor judgement, subject to professional and legal considerations (para 17, Aus A20.1).\n\n**Reference to the changed paragraphs**: Aus 14.1 (new), para 17 (amended), Aus A20.1 (new); application and operative date paragraphs."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains its original narrow scope as a technical amendment to ASA 560. It does not expand beyond clarifying post-issuance procedures and harmonising with New Zealand standards. The amendments remain tightly focused on subsequent events procedures without encroaching into other audit areas."},"complexity_factors":["Short, focused amending instrument (approximately 12 operative paragraphs)","No new defined terms introduced — relies on existing definitions in ASA 560 and AUASB Glossary","Simple conditional structure: if X happens, then do Y","Limited cross-referencing — primarily refers back to ASA 560 paragraphs 14, 17, and A20","Straightforward amendments: one deletion, two insertions, and one modification of existing text","No nested exceptions or complex computational requirements"],"plain_english_summary":"This instrument updates rules for auditors handling \"subsequent events\" — facts discovered after a financial report is issued but before an audit is finalised. It requires timely action, discussion with management and directors, and gives auditors stronger remedies (including notifying regulators or the public) if material errors aren’t corrected.\n\nIt affects registered company auditors, company directors/management and users of financial reports, closing a gap in guidance and better protecting investors from relying on flawed audit opinions."}},"importantCases":[],"_links":{"self":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events","history":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events/history","analysis":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events/analysis","conflicts":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events/conflicts","importantCases":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events/important-cases","documents":"/api/acts/auditing-standard-asa-2021-2-amendments-to-australian-auditing-standard-asa-560-subsequent-events/documents"}}