{"id":"F2025L00105","name":"Auditing Standard ASA 2025-1 Amendments to Australian Auditing Standards","slug":"auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105924,"registerId":"commonwealth-F2025L00105-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 BoardPhone: (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© 2025 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 Director - National, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to 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\nDefinitions.................................................................6\n\nAmendments to Auditing Standards............................................7-8\n\nAmendments to ASA 700.....................................................9-16\n\nAmendments to ASA 260....................................................17-23","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 BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204, Collins Street WestMelbourne Victoria 8007AUSTRALIA |\n| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n##### COPYRIGHT\n\n© 2025 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 Director - National, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to 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\nDefinitions.................................................................6\n\nAmendments to Auditing Standards............................................7-8\n\nAmendments to ASA 700.....................................................9-16\n\nAmendments to ASA 260....................................................17-23\n\n  \n\n# preface\n\n#### Reasons for Issuing ASA 2025-1\n\nThe AUASB issues Auditing Standard ASA 2025-1 Amendments to Australian Auditing Standards 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. 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, 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 amends the requirements and application and other explanatory material and appendices of the following Auditing Standards:\n\nASA 700 Forming an Opinion and Reporting on a Financial Report (Issued December 2015 and amended to March 2023)\n\nASA 260 Communication With Those Charged With Governance (Issued December 2015 and amended to March 2021)\n\nASA 2025-1 amends:\n\n-   ASA 700 in connection with disclosure concerning the application of auditor independence requirements in the Code in audit reports of public interest entities and certain other entities; and\n-   ASA 260 to require the auditor to communicate to those charged with governance of an audited entity on the application of the auditor independence requirements.\n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2025-1 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.\n\nDated: 28 January 2025 D Niven  \nChair - AUASB\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard makes amendments to other auditing standards that are consistent with changes made by the International Auditing and Assurance Standards Board to the equivalent International Standard on Auditing.","sortOrder":4},{"sectionNumber":"Reasons for Issuing ASA 2025-1","sectionType":"subdivision","heading":"Reasons for Issuing ASA 2025-1","content":"#### Reasons for Issuing ASA 2025-1\n\nThe AUASB issues Auditing Standard ASA 2025-1 Amendments to Australian Auditing Standards 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. 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, 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 amends the requirements and application and other explanatory material and appendices of the following Auditing Standards:\n\nASA 700 Forming an Opinion and Reporting on a Financial Report (Issued December 2015 and amended to March 2023)\n\nASA 260 Communication With Those Charged With Governance (Issued December 2015 and amended to March 2021)\n\nASA 2025-1 amends:\n\n-   ASA 700 in connection with disclosure concerning the application of auditor independence requirements in the Code in audit reports of public interest entities and certain other entities; and\n-   ASA 260 to require the auditor to communicate to those charged with governance of an audited entity on the application of the auditor independence requirements.\n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2025-1 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.\n\nDated: 28 January 2025 D Niven  \nChair - AUASB\n\n##### Conformity with International Standards on Auditing\n\nThis Auditing Standard makes amendments to other auditing standards that are consistent with changes made by the International Auditing and Assurance Standards Board to the equivalent International Standard on Auditing.","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 2025-1 Amendments to Australian Auditing Standards 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 makes amendments to other auditing standards that are consistent with changes made by the International Auditing and Assurance Standards Board to the equivalent International Standard on Auditing.","sortOrder":8},{"sectionNumber":"Auditing Standard ASA 2025-1","sectionType":"part","heading":"Auditing Standard ASA 2025-1","content":"## Auditing Standard ASA 2025-1\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  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    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose.\n2.  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 2024.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard amends Australian Auditing Standards ASA 700 Forming an Opinion and Reporting on Financial Statements and ASA 260 Communication with Those Charged with Governance in relation to disclosing publicly the application of the independence requirements for certain entities, including Public Interest Entities (PIEs) and communicating on those matters to those charged with governance.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to amend the following Auditing Standards in connection with disclosure concerning auditor independence in audit reports following changes made by the Accounting Professional & Ethical Standards Board (APESB) to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and communication to those charged with governance:\n    1.  ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued 1 December 2015 and amended to 31 March 2023); and\n    2.  ASA 260 Communication With Those Charged With Governance (Issued 1 December 2015 and amended to 27 April 2022).\n\n##### Definitions\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 Standards\n\n1.  Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, 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.\n2.  Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.\n\n###### Amendments to ASA 700\n\n1.  Existing subparagraph Aus 28.1(c) is amended to read as follows:\n\nIncludes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia; and (Ref: Para. Aus A34.1–A389)\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities; and (Ref: Para. A36)\n\n1.  Existing subparagraph Aus 50.1(e) is amended to read as follows:\n\nA statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities requirements in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia.\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities.\n\n1.  Each of the existing paragraphs A36 to A84 are renumbered as paragraphs A37 to A85 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph A36 is inserted following existing paragraph A35:\n\nRelevant ethical requirements may:\n\n(a) \\[Deleted by the AUASB. Refer to Aus A36.1(a).\\]\n\nAus A36.1(a) Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.\n\n(b) Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[\\[29\\]](#_ftn1)\n\nASA 260 sets out requirements and guidance about the auditor’s communication with those charged with governance, which includes communications for these cases.[\\[30\\]](#_ftn2)\n\n1.  Existing paragraph A36 is amended to read as follows:\n\nLaw or regulation, Australian Auditing Standards or the terms of an audit engagement may also require the auditor to provide in the auditor’s report more specific information about the sources of the relevant ethical requirements, including those related to independence, that applied to the audit of the financial report.\n\nAmendments to ASA 700 Appendix 1: \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A\n\n1.  The fifth point of \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A are amended as follows:\n\n The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.\n\n1.  \\[Aus\\] Illustration 1A: Example Auditor’s Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n…\n\n1.  \\[Aus\\] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\n…\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n###### …  \n\n###### Amendments to ASA 260\n\n1.  Each of the existing paragraphs 17 to 23 are renumbered as paragraphs 18 to 24 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph 17 is inserted following existing sub-heading “Auditor Independence”:\n\nThe auditor shall communicate with those charged with governance the relevant ethical requirements, including those related to independence, that the auditor applies for the audit engagement, including if applicable in the circumstances, any independence requirements specific to audits of financial reports of certain entities. (Ref: Para. A29)\n\n1.  In renumbered existing paragraph 18(a)(ii) ‘A29’ is replaced by ‘A30’\n2.  Existing paragraph A29 and its heading are amended to read as follows:\n\nAuditor Independence (Ref: Para. 17–18)\n\nThe auditor is required to comply with relevant ethical requirements, including those related to independence, relating to financial report audit engagements24 and to communicate with those charged with governance about the requirements the auditor applies. Relevant ethical requirements may:\n\n1.  Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.\n2.  Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [\\[1\\]](#_ftn3) ASA 700 addresses the requirements for the auditor’s report relating to the auditor’s independence and the relevant ethical requirements the auditor applied.[\\[2\\]](#_ftn4)\n3.  \\[Deleted by the AUASB. Refer to Aus A29.1(c).\\]\n\nAus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[\\[3\\]](#_ftn5) If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.\n\n1.  Existing paragraph A30 is amended to read as follows:\n\nThe communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate the circumstances that created the threats.\n\n1.  Delete paragraph A31.\n2.  Renumber existing Aus A31.1 as ‘A31’ and amend it to read as follows:\n\nRelevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.\\* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[\\[4\\]](#_ftn6).","sortOrder":9},{"sectionNumber":"Amendments to Australian Auditing Standa","sectionType":"division","heading":"Amendments to Australian Auditing Standards","content":"## Auditing Standard ASA 2025-1\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  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    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose.\n2.  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 2024.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard amends Australian Auditing Standards ASA 700 Forming an Opinion and Reporting on Financial Statements and ASA 260 Communication with Those Charged with Governance in relation to disclosing publicly the application of the independence requirements for certain entities, including Public Interest Entities (PIEs) and communicating on those matters to those charged with governance.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to amend the following Auditing Standards in connection with disclosure concerning auditor independence in audit reports following changes made by the Accounting Professional & Ethical Standards Board (APESB) to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and communication to those charged with governance:\n    1.  ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued 1 December 2015 and amended to 31 March 2023); and\n    2.  ASA 260 Communication With Those Charged With Governance (Issued 1 December 2015 and amended to 27 April 2022).\n\n##### Definitions\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 Standards\n\n1.  Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, 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.\n2.  Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.\n\n###### Amendments to ASA 700\n\n1.  Existing subparagraph Aus 28.1(c) is amended to read as follows:\n\nIncludes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia; and (Ref: Para. Aus A34.1–A389)\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities; and (Ref: Para. A36)\n\n1.  Existing subparagraph Aus 50.1(e) is amended to read as follows:\n\nA statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities requirements in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia.\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities.\n\n1.  Each of the existing paragraphs A36 to A84 are renumbered as paragraphs A37 to A85 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph A36 is inserted following existing paragraph A35:\n\nRelevant ethical requirements may:\n\n(a) \\[Deleted by the AUASB. Refer to Aus A36.1(a).\\]\n\nAus A36.1(a) Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.\n\n(b) Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[\\[29\\]](#_ftn1)\n\nASA 260 sets out requirements and guidance about the auditor’s communication with those charged with governance, which includes communications for these cases.[\\[30\\]](#_ftn2)\n\n1.  Existing paragraph A36 is amended to read as follows:\n\nLaw or regulation, Australian Auditing Standards or the terms of an audit engagement may also require the auditor to provide in the auditor’s report more specific information about the sources of the relevant ethical requirements, including those related to independence, that applied to the audit of the financial report.\n\nAmendments to ASA 700 Appendix 1: \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A\n\n1.  The fifth point of \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A are amended as follows:\n\n The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.\n\n1.  \\[Aus\\] Illustration 1A: Example Auditor’s Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n…\n\n1.  \\[Aus\\] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\n…\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n###### …  \n\n###### Amendments to ASA 260\n\n1.  Each of the existing paragraphs 17 to 23 are renumbered as paragraphs 18 to 24 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph 17 is inserted following existing sub-heading “Auditor Independence”:\n\nThe auditor shall communicate with those charged with governance the relevant ethical requirements, including those related to independence, that the auditor applies for the audit engagement, including if applicable in the circumstances, any independence requirements specific to audits of financial reports of certain entities. (Ref: Para. A29)\n\n1.  In renumbered existing paragraph 18(a)(ii) ‘A29’ is replaced by ‘A30’\n2.  Existing paragraph A29 and its heading are amended to read as follows:\n\nAuditor Independence (Ref: Para. 17–18)\n\nThe auditor is required to comply with relevant ethical requirements, including those related to independence, relating to financial report audit engagements24 and to communicate with those charged with governance about the requirements the auditor applies. Relevant ethical requirements may:\n\n1.  Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.\n2.  Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [\\[1\\]](#_ftn3) ASA 700 addresses the requirements for the auditor’s report relating to the auditor’s independence and the relevant ethical requirements the auditor applied.[\\[2\\]](#_ftn4)\n3.  \\[Deleted by the AUASB. Refer to Aus A29.1(c).\\]\n\nAus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[\\[3\\]](#_ftn5) If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.\n\n1.  Existing paragraph A30 is amended to read as follows:\n\nThe communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate the circumstances that created the threats.\n\n1.  Delete paragraph A31.\n2.  Renumber existing Aus A31.1 as ‘A31’ and amend it to read as follows:\n\nRelevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.\\* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[\\[4\\]](#_ftn6).","sortOrder":10},{"sectionNumber":"Application","sectionType":"section","heading":"Application","content":"##### Application\n\n1.  This Auditing Standard applies to:\n    1.  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    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose.\n2.  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 2024.","sortOrder":12},{"sectionNumber":"Introduction","sectionType":"section","heading":"Introduction","content":"## Auditing Standard ASA 2025-1\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  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    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose.\n2.  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 2024.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard amends Australian Auditing Standards ASA 700 Forming an Opinion and Reporting on Financial Statements and ASA 260 Communication with Those Charged with Governance in relation to disclosing publicly the application of the independence requirements for certain entities, including Public Interest Entities (PIEs) and communicating on those matters to those charged with governance.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to amend the following Auditing Standards in connection with disclosure concerning auditor independence in audit reports following changes made by the Accounting Professional & Ethical Standards Board (APESB) to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and communication to those charged with governance:\n    1.  ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued 1 December 2015 and amended to 31 March 2023); and\n    2.  ASA 260 Communication With Those Charged With Governance (Issued 1 December 2015 and amended to 27 April 2022).\n\n##### Definitions\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 Standards\n\n1.  Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, 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.\n2.  Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.\n\n###### Amendments to ASA 700\n\n1.  Existing subparagraph Aus 28.1(c) is amended to read as follows:\n\nIncludes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia; and (Ref: Para. Aus A34.1–A389)\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities; and (Ref: Para. A36)\n\n1.  Existing subparagraph Aus 50.1(e) is amended to read as follows:\n\nA statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities requirements in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia.\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities.\n\n1.  Each of the existing paragraphs A36 to A84 are renumbered as paragraphs A37 to A85 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph A36 is inserted following existing paragraph A35:\n\nRelevant ethical requirements may:\n\n(a) \\[Deleted by the AUASB. Refer to Aus A36.1(a).\\]\n\nAus A36.1(a) Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.\n\n(b) Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[\\[29\\]](#_ftn1)\n\nASA 260 sets out requirements and guidance about the auditor’s communication with those charged with governance, which includes communications for these cases.[\\[30\\]](#_ftn2)\n\n1.  Existing paragraph A36 is amended to read as follows:\n\nLaw or regulation, Australian Auditing Standards or the terms of an audit engagement may also require the auditor to provide in the auditor’s report more specific information about the sources of the relevant ethical requirements, including those related to independence, that applied to the audit of the financial report.\n\nAmendments to ASA 700 Appendix 1: \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A\n\n1.  The fifth point of \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A are amended as follows:\n\n The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.\n\n1.  \\[Aus\\] Illustration 1A: Example Auditor’s Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n…\n\n1.  \\[Aus\\] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\n…\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n###### …  \n\n###### Amendments to ASA 260\n\n1.  Each of the existing paragraphs 17 to 23 are renumbered as paragraphs 18 to 24 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph 17 is inserted following existing sub-heading “Auditor Independence”:\n\nThe auditor shall communicate with those charged with governance the relevant ethical requirements, including those related to independence, that the auditor applies for the audit engagement, including if applicable in the circumstances, any independence requirements specific to audits of financial reports of certain entities. (Ref: Para. A29)\n\n1.  In renumbered existing paragraph 18(a)(ii) ‘A29’ is replaced by ‘A30’\n2.  Existing paragraph A29 and its heading are amended to read as follows:\n\nAuditor Independence (Ref: Para. 17–18)\n\nThe auditor is required to comply with relevant ethical requirements, including those related to independence, relating to financial report audit engagements24 and to communicate with those charged with governance about the requirements the auditor applies. Relevant ethical requirements may:\n\n1.  Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.\n2.  Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [\\[1\\]](#_ftn3) ASA 700 addresses the requirements for the auditor’s report relating to the auditor’s independence and the relevant ethical requirements the auditor applied.[\\[2\\]](#_ftn4)\n3.  \\[Deleted by the AUASB. Refer to Aus A29.1(c).\\]\n\nAus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[\\[3\\]](#_ftn5) If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.\n\n1.  Existing paragraph A30 is amended to read as follows:\n\nThe communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate the circumstances that created the threats.\n\n1.  Delete paragraph A31.\n2.  Renumber existing Aus A31.1 as ‘A31’ and amend it to read as follows:\n\nRelevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.\\* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[\\[4\\]](#_ftn6).","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 amends Australian Auditing Standards ASA 700 Forming an Opinion and Reporting on Financial Statements and ASA 260 Communication with Those Charged with Governance in relation to disclosing publicly the application of the independence requirements for certain entities, including Public Interest Entities (PIEs) and communicating on those matters to those charged with governance.","sortOrder":14},{"sectionNumber":"Objective","sectionType":"section","heading":"Objective","content":"##### Objective\n\n1.  The objective of this Auditing Standard is to amend the following Auditing Standards in connection with disclosure concerning auditor independence in audit reports following changes made by the Accounting Professional & Ethical Standards Board (APESB) to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and communication to those charged with governance:\n    1.  ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued 1 December 2015 and amended to 31 March 2023); and\n    2.  ASA 260 Communication With Those Charged With Governance (Issued 1 December 2015 and amended to 27 April 2022).","sortOrder":15},{"sectionNumber":"Definitions","sectionType":"section","heading":"Definitions","content":"##### Definitions\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 Standards","sectionType":"section","heading":"Amendments to Auditing Standards","content":"##### Amendments to Auditing Standards\n\n1.  Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, 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.\n2.  Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.","sortOrder":17},{"sectionNumber":"Amendments to ASA 700","sectionType":"section","heading":"Amendments to ASA 700","content":"###### Amendments to ASA 700\n\n1.  Existing subparagraph Aus 28.1(c) is amended to read as follows:\n\nIncludes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia; and (Ref: Para. Aus A34.1–A389)\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities; and (Ref: Para. A36)\n\n1.  Existing subparagraph Aus 50.1(e) is amended to read as follows:\n\nA statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities requirements in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia.\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities.\n\n1.  Each of the existing paragraphs A36 to A84 are renumbered as paragraphs A37 to A85 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph A36 is inserted following existing paragraph A35:\n\nRelevant ethical requirements may:\n\n(a) \\[Deleted by the AUASB. Refer to Aus A36.1(a).\\]\n\nAus A36.1(a) Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.\n\n(b) Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[\\[29\\]](#_ftn1)\n\nASA 260 sets out requirements and guidance about the auditor’s communication with those charged with governance, which includes communications for these cases.[\\[30\\]](#_ftn2)\n\n1.  Existing paragraph A36 is amended to read as follows:\n\nLaw or regulation, Australian Auditing Standards or the terms of an audit engagement may also require the auditor to provide in the auditor’s report more specific information about the sources of the relevant ethical requirements, including those related to independence, that applied to the audit of the financial report.\n\nAmendments to ASA 700 Appendix 1: \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A\n\n1.  The fifth point of \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A are amended as follows:\n\n The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.\n\n1.  \\[Aus\\] Illustration 1A: Example Auditor’s Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n…\n\n1.  \\[Aus\\] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\n…\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.","sortOrder":18},{"sectionNumber":"…","sectionType":"section","heading":"…","content":"## Auditing Standard ASA 2025-1\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  This Auditing Standard applies to:\n    1.  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    2.  an audit of a financial report, or a complete set of financial statements, for any other purpose.\n2.  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 2024.\n\n##### Introduction\n\n###### Scope of this Auditing Standard\n\n1.  This Auditing Standard amends Australian Auditing Standards ASA 700 Forming an Opinion and Reporting on Financial Statements and ASA 260 Communication with Those Charged with Governance in relation to disclosing publicly the application of the independence requirements for certain entities, including Public Interest Entities (PIEs) and communicating on those matters to those charged with governance.\n\n##### Objective\n\n1.  The objective of this Auditing Standard is to amend the following Auditing Standards in connection with disclosure concerning auditor independence in audit reports following changes made by the Accounting Professional & Ethical Standards Board (APESB) to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) and communication to those charged with governance:\n    1.  ASA 700 Forming an Opinion and Reporting on a Financial Report (Issued 1 December 2015 and amended to 31 March 2023); and\n    2.  ASA 260 Communication With Those Charged With Governance (Issued 1 December 2015 and amended to 27 April 2022).\n\n##### Definitions\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 Standards\n\n1.  Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, 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.\n2.  Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.\n\n###### Amendments to ASA 700\n\n1.  Existing subparagraph Aus 28.1(c) is amended to read as follows:\n\nIncludes a statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia; and (Ref: Para. Aus A34.1–A389)\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities; and (Ref: Para. A36)\n\n1.  Existing subparagraph Aus 50.1(e) is amended to read as follows:\n\nA statement that the auditor is independent of the entity in accordance with the relevant ethical requirements relating to the audit, and has fulfilled the auditor’s other ethical responsibilities requirements in accordance with these requirements.\n\n(i) The statement shall identify the relevant ethical requirements applicable within Australia.\n\n(ii) If the relevant ethical requirements require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities, the statement shall indicate that the auditor is independent of the entity in accordance with the independence requirements applicable to the audits of those entities.\n\n1.  Each of the existing paragraphs A36 to A84 are renumbered as paragraphs A37 to A85 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph A36 is inserted following existing paragraph A35:\n\nRelevant ethical requirements may:\n\n(a) \\[Deleted by the AUASB. Refer to Aus A36.1(a).\\]\n\nAus A36.1(a) Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code). Relevant ethical requirements may also require the auditor to determine whether it is appropriate to apply such independence requirements to audits of financial reports of entities other than those entities specified in the relevant ethical requirements.\n\n(b) Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities. For example, the Code requires that when a firm has applied the independence requirements for public interest entities in performing an audit of the financial reports of an entity, the firm publicly disclose that fact, unless making such disclosure would result in disclosing confidential future plans of the entity.[\\[29\\]](#_ftn1)\n\nASA 260 sets out requirements and guidance about the auditor’s communication with those charged with governance, which includes communications for these cases.[\\[30\\]](#_ftn2)\n\n1.  Existing paragraph A36 is amended to read as follows:\n\nLaw or regulation, Australian Auditing Standards or the terms of an audit engagement may also require the auditor to provide in the auditor’s report more specific information about the sources of the relevant ethical requirements, including those related to independence, that applied to the audit of the financial report.\n\nAmendments to ASA 700 Appendix 1: \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A\n\n1.  The fifth point of \\[Aus\\] Illustration 1A and \\[Aus\\] Illustration 2A are amended as follows:\n\n The relevant ethical requirements that apply to the audit are the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) ­(the Code). The Code includes independence requirements that are applicable to audits of financial reports of public interest entities. The Code also requires the auditor to publicly disclose that the independence requirements applicable to audits of financial reports of public interest entities were applied.\n\n1.  \\[Aus\\] Illustration 1A: Example Auditor’s Report for Single Company – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n…\n\n1.  \\[Aus\\] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows:\n\nINDEPENDENT AUDITOR’S REPORT\n\n…\n\nBasis for Opinion\n\nWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code) that are relevant to our audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.\n\n###### …  \n\n###### Amendments to ASA 260\n\n1.  Each of the existing paragraphs 17 to 23 are renumbered as paragraphs 18 to 24 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph 17 is inserted following existing sub-heading “Auditor Independence”:\n\nThe auditor shall communicate with those charged with governance the relevant ethical requirements, including those related to independence, that the auditor applies for the audit engagement, including if applicable in the circumstances, any independence requirements specific to audits of financial reports of certain entities. (Ref: Para. A29)\n\n1.  In renumbered existing paragraph 18(a)(ii) ‘A29’ is replaced by ‘A30’\n2.  Existing paragraph A29 and its heading are amended to read as follows:\n\nAuditor Independence (Ref: Para. 17–18)\n\nThe auditor is required to comply with relevant ethical requirements, including those related to independence, relating to financial report audit engagements24 and to communicate with those charged with governance about the requirements the auditor applies. Relevant ethical requirements may:\n\n1.  Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.\n2.  Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [\\[1\\]](#_ftn3) ASA 700 addresses the requirements for the auditor’s report relating to the auditor’s independence and the relevant ethical requirements the auditor applied.[\\[2\\]](#_ftn4)\n3.  \\[Deleted by the AUASB. Refer to Aus A29.1(c).\\]\n\nAus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[\\[3\\]](#_ftn5) If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.\n\n1.  Existing paragraph A30 is amended to read as follows:\n\nThe communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate the circumstances that created the threats.\n\n1.  Delete paragraph A31.\n2.  Renumber existing Aus A31.1 as ‘A31’ and amend it to read as follows:\n\nRelevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.\\* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[\\[4\\]](#_ftn6).","sortOrder":19},{"sectionNumber":"Amendments to ASA 260","sectionType":"section","heading":"Amendments to ASA 260","content":"###### Amendments to ASA 260\n\n1.  Each of the existing paragraphs 17 to 23 are renumbered as paragraphs 18 to 24 respectively. All cross-references to those paragraphs are updated accordingly.\n2.  The following paragraph 17 is inserted following existing sub-heading “Auditor Independence”:\n\nThe auditor shall communicate with those charged with governance the relevant ethical requirements, including those related to independence, that the auditor applies for the audit engagement, including if applicable in the circumstances, any independence requirements specific to audits of financial reports of certain entities. (Ref: Para. A29)\n\n1.  In renumbered existing paragraph 18(a)(ii) ‘A29’ is replaced by ‘A30’\n2.  Existing paragraph A29 and its heading are amended to read as follows:\n\nAuditor Independence (Ref: Para. 17–18)\n\nThe auditor is required to comply with relevant ethical requirements, including those related to independence, relating to financial report audit engagements24 and to communicate with those charged with governance about the requirements the auditor applies. Relevant ethical requirements may:\n\n1.  Establish independence requirements that are specific to audits of financial reports of certain entities specified in the relevant ethical requirements, such as the independence requirements for audits of financial reports of public interest entities in the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board Limited (the Code). If applicable in the circumstances of the audit engagement, this ASA requires that the auditor also communicates with those charged with governance that the auditor applies such independence requirements.\n2.  Require the auditor to publicly disclose when the auditor applied independence requirements specific to audits of financial reports of certain entities specified in the relevant ethical requirements. [\\[1\\]](#_ftn3) ASA 700 addresses the requirements for the auditor’s report relating to the auditor’s independence and the relevant ethical requirements the auditor applied.[\\[2\\]](#_ftn4)\n3.  \\[Deleted by the AUASB. Refer to Aus A29.1(c).\\]\n\nAus A29.1(c) Require the auditor to determine whether it is appropriate to apply independence requirements that are specific to audits of financial reports of certain entities to audits of financial reports of other entities not specified in the relevant ethical requirements.[\\[3\\]](#_ftn5) If this is the case and the auditor is required to publicly disclose when the auditor applied such independence requirements, the auditor may discuss with management or those charged with governance whether there is a risk of misunderstanding the nature of the entity and any need for additional disclosure.\n\n1.  Existing paragraph A30 is amended to read as follows:\n\nThe communication about relationships and other matters, and how threats to independence that are not at an acceptable level have been addressed varies with the circumstances of the engagement and generally addresses the threats to independence, safeguards to reduce the threats, and measures to eliminate the circumstances that created the threats.\n\n1.  Delete paragraph A31.\n2.  Renumber existing Aus A31.1 as ‘A31’ and amend it to read as follows:\n\nRelevant ethical requirements or law or regulation may also specify particular communications to those charged with governance in circumstances where breaches of independence requirements have been identified.\\* For example, the Code requires the auditor to communicate with those charged with governance in writing about any breach and the action the firm has taken or proposes to take[\\[4\\]](#_ftn6).","sortOrder":20}],"analysis":{"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"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The instrument is narrowly focused: it aligns existing Australian auditing standards with changes in the APES 110 Code of Ethics by adding disclosure and communication requirements about application of entity‑specific independence rules. It does not broaden the overall subject matter of auditing standards beyond independence‑related reporting and governance communication, nor does it introduce new substantive powers or obligations beyond disclosure/communication and template wording. Therefore the scope has not materially grown beyond the stated purpose of aligning ASA 700 and ASA 260 with the updated APES 110 requirements."},"complexity_factors":["Amends two existing standards (ASA 700 and ASA 260) rather than creating a standalone standard (requires cross-reading).","Renumbering of multiple explanatory paragraphs (existing A36–A84 renumbered to A37–A85) increases cross-reference maintenance.","Conditional disclosure triggers: disclosure obligation only arises 'if the relevant ethical requirements require' it (creates a conditional rule dependent on APES 110 and circumstance).","Cross-references to external document APES 110 (Accounting Professional & Ethical Standards Board Code of Ethics) and to Corporations Act independence requirements.","Insertion of new para in ASA 260 (para. 17) that requires communication to those charged with governance — introduces new operational step for auditors.","Changes to illustrative auditor’s reports (Illustrations 1A and 2A) that firms will adapt into templates.","Exceptions and interaction with confidentiality (APES 110 exception where disclosure would reveal confidential future plans) — an exception to the disclosure rule.","Operative date tied to reporting periods commencing on/after a date (15 Dec 2024) — timing and transition considerations.","No new definitions introduced, which reduces definitional complexity but increases reliance on other instruments' definitions (AUASB Glossary and APES 110).","Multiple small edits across both requirements and application/explanatory material rather than a single, simple amendment."],"plain_english_summary":"**What this instrument changes (mechanics)\n\n- Amends two Australian auditing standards: ASA 700 (Forming an Opinion and Reporting on a Financial Report) and ASA 260 (Communication With Those Charged With Governance). (See: Amendments to ASA 700; Amendments to ASA 260.)\n- Requires auditors to identify in the auditor's report the specific ethical requirements they relied on in Australia and, where the ethical rules require it, to state publicly when they applied independence requirements that are specific to audits of particular kinds of entities (for example, public interest entities or PIEs). (Amendments to Aus 28.1(c), Aus 50.1(e), inserted Aus A36 and related illustrative wording.)\n- Requires auditors to tell those charged with governance which ethical requirements (including independence requirements) they applied for the engagement, and to communicate particular matters in writing where a breach of independence has been identified. (Inserted paragraph 17 in ASA 260 and amended Aus A29/A31.)\n- Updates example auditor’s report text (Illustrations 1A and 2A) to show the new wording identifying the Corporations Act independence obligation and the APES 110 Code of Ethics as the relevant Code where PIE independence requirements were applied. (Amendments to ASA 700 Appendix 1 illustrations.)\n- Operative for reporting periods commencing on or after 15 December 2024. (Operative Date, Para. 3.)\n\n\nWhy the change is presented (official rationale)\n\n- The AUASB says the amendments align the Australian auditing standards with changes to the APES 110 Code of Ethics (the Australian ethics code) and with the equivalent changes made by the International Auditing and Assurance Standards Board. The stated objective is to ensure audit reports and auditor–governance communications reflect whether independence requirements specific to certain entities (e.g. PIEs) were applied. (Objective; Conformity with International Standards.)\n\n\nWho this affects and who decides\n\n- Auditors and audit firms: must decide whether entity‑specific independence requirements applied, change auditor report wording when required, and communicate the applied ethics requirements to those charged with governance. (Amendments to Aus 28.1(c), Aus 50.1(e); ASA 260 para. 17.)\n- Audited entities and their boards/committees (those charged with governance): will receive explicit communications from auditors about which ethical/independence requirements were applied and, in some cases, may see statements in public auditor reports. (ASA 260 para. 17; Aus A29/A31.)\n- Users of financial reports: may see clearer statements in audit reports about the independence framework relied on for the audit.\n\n\nPractical effects and behaviour changes (mechanisms)\n\n- Auditors will update standard report wording and internal engagement documentation to show which Australian ethical requirements applied (e.g. APES 110). (Amended Aus 28.1(c) and Aus 50.1(e); Illustrations 1A and 2A.)\n- Auditors must communicate proactively with governance about the independence requirements applied and, where breaches occur, typically in writing about the breach and proposed remedial action. (ASA 260 para. 17; Aus A31.)\n- Where APES 110 or other relevant ethical requirements allow or require the firm to apply PIE-style independence requirements to non-PIE audits, auditors must consider whether to apply them and may need to decide whether and how to disclose that choice publicly; the standard suggests discussing potential misunderstanding with management/governance. (Aus A36.1(a); Aus A29.1(c).)\n\n\nCosts, incentives and trade-offs\n\n- Compliance burden: Firms will incur modest additional compliance work — updating report templates and client/gov ernance communications, staff training, and possible extra documentation when applying entity‑specific independence requirements. (Amended report wording and ASA 260 communication obligations.)\n- Reputational/information effects: Public disclosure that a firm has applied PIE‑level independence requirements could be read by users as an added assurance of independence, or conversely could create questions if users misinterpret why PIE requirements were applied to a non‑PIE. The Standard signals auditors should consider and manage that risk in communications. (Aus A29.1(c).)\n- Decision authority: The auditor retains professional judgment about whether entity‑specific independence requirements should be applied to other entities, but, where such application occurs and the ethical rules require disclosure, the auditor must disclose it. That shifts some forward-looking decision and coordination costs onto auditors and those charged with governance. (Aus A36.1(a); ASA 260 para. 17.)\n- Potential for inconsistent application: Because the change references APES 110 and permits auditors to apply PIE requirements to other entities where appropriate, different firms could reach different judgments in similar circumstances, creating comparability challenges for users. (Aus A36.1(a); Aus A29.1(c).)\n\n\nImplementation risks and mitigations\n\n- Risk of inconsistent wording across firms: mitigated by the Standard providing specific illustrative wording (updated Illustrations 1A and 2A) and cross‑reference to APES 110.\n- Risk that disclosure could unintentionally reveal confidential information: APES 110 contains an exception (reflected in the amendments) allowing non‑disclosure where disclosure would reveal confidential future plans; auditors must balance transparency and confidentiality. (Aus A36.1(b).)\n\n\nSource claims and testing them against trade-offs\n\n- Source claim: the amendments align Australian standards with APES 110 and international changes. Mechanically that is achieved by adding reporting and communication requirements tied to whether entity‑specific independence rules were applied (see amended Aus paras and ASA 260 insertion). The trade-off is modest compliance and coordination cost for auditors and boards versus increased transparency about the independence framework used for an audit.\n\n\nKey sections to review in the instrument\n\n- Application and Operative Date (paras 1–3).\n- Amended auditor report wording: Aus 28.1(c), Aus 50.1(e), Illustrations 1A/2A (ASA 700 amendments).\n- New and amended explanatory paragraphs: Aus A36/A36.1, Aus A29/A31 (guidance on when to disclose and communications to governance).\n- ASA 260 insertion: para. 17 (auditor must communicate the ethical/independence requirements applied).\n\n\nBottom line\n\nThis amending Auditing Standard requires auditors to be explicit (to report users and to those charged with governance) about which Australian ethical and independence requirements they applied for an audit, and to follow specified communication steps if independence breaches occur. The measure implements alignment with APES 110 and provides template wording; it increases transparency but imposes modest additional documentation and communication obligations on auditors and time/interaction costs on audited entities' governance bodies."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This amending standard maintains its original narrow purpose: updating disclosure and communication requirements for auditor independence following changes to the APES 110 Code of Ethics. It does not expand beyond its stated objective of amending ASA 700 and ASA 260 in connection with independence disclosures. The scope remains tightly focused on public interest entity independence requirements and governance communications."},"complexity_factors":["Amending instrument structure: modifies two existing standards (ASA 700 and ASA 260) rather than creating standalone rules, requiring readers to cross-reference original standards","Paragraph renumbering cascade: insertion of new paragraphs triggers renumbering of existing paragraphs A36-A84 (becoming A37-A85) and paragraphs 17-23 (becoming 18-24), with all cross-references updated","Conditional logic: requirements are contingent on whether 'relevant ethical requirements require the auditor to publicly disclose' application of specific independence requirements","Nested references: refers to APES 110 Code of Ethics (separate document), ASA 700, ASA 260, Corporations Act 2001, and Australian Securities and Investments Commission Act 2001","Australian-specific modifications: uses 'Aus' prefix paragraphs (Aus 28.1, Aus 50.1, Aus A36.1, Aus A29.1, Aus A31.1) indicating local amendments to international base standards","Typographical convention complexity: explains that underlining/strikethrough in the amending standard itself is for readability only and does not form part of the actual amendments","Exception to disclosure requirement: includes carve-out where disclosure would reveal 'confidential future plans of the entity'"],"plain_english_summary":"This technical amendment tightens auditor independence disclosures: auditors must now state in their audit reports whether they applied the stricter public interest entity (PIE) independence rules (including APES 110) and must tell the company’s board which independence requirements governed the audit. It affects auditors of PIEs, company boards/audit committees, and investors, increasing transparency about conflicts of interest and aligning Australia with recent international practice."}},"importantCases":[],"_links":{"self":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards","history":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards/history","analysis":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards/analysis","conflicts":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards/conflicts","importantCases":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards/important-cases","documents":"/api/acts/auditing-standard-asa-2025-1-amendments-to-australian-auditing-standards/documents"}}