{"id":"F2025L00108","name":"Auditing Standard ASA 2025-2 Amendments to Australian Auditing Standards","slug":"auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105937,"registerId":"commonwealth-F2025L00108-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 1030-603X","sortOrder":2},{"sectionNumber":"CONTENTS","sectionType":"part","heading":"CONTENTS","content":"# CONTENTS\n\nPREFACE\n\nAUTHORITY STATEMENT\n\nCONFORMITY WITH INTERNATIONAL STANDARDS\n\nParagraphs\n\nApplication.................................................................1\n\nOperative Date..............................................................2\n\nIntroduction\n\nScope of this Standard.........................................................3\n\nObjective..................................................................4\n\nDefinition..................................................................5\n\nAmendments to Standards....................................................6-7\n\nAmendments to ASQM 1.....................................................8-20\n\nAmendments to ASQM 2....................................................21-31\n\nAmendments to ASA 720....................................................32-33","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 1030-603X\n\n# CONTENTS\n\nPREFACE\n\nAUTHORITY STATEMENT\n\nCONFORMITY WITH INTERNATIONAL STANDARDS\n\nParagraphs\n\nApplication.................................................................1\n\nOperative Date..............................................................2\n\nIntroduction\n\nScope of this Standard.........................................................3\n\nObjective..................................................................4\n\nDefinition..................................................................5\n\nAmendments to Standards....................................................6-7\n\nAmendments to ASQM 1.....................................................8-20\n\nAmendments to ASQM 2....................................................21-31\n\nAmendments to ASA 720....................................................32-33\n\n  \n\n# preface\n\n#### Reasons for Issuing ASA 2025-2\n\nThe Auditing and Assurance Standards Board (AUASB) issues Auditing Standard ASA 2025-2 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 (ASIC Act). Under section 336 of the Corporations Act 2001 (the Act), 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 makes amendments to the requirements and application & other explanatory material and appendices of the following Auditing Standards for minor updates on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General requirements for Sustainability Assurance Engagements:\n\nASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022)\n\nASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022)\n\nASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to March 2023)\n\nThe amendments are consistent with changes made by the International Auditing and Assurance Standards Board (IAASB) on the issuing of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements. Under the Strategic Direction given to the AUASB by the Financial Reporting Council, the AUASB is required to have regard to any programme initiated by the IAASB for the revision and enhancement of the standards issued by the IAASB and to make appropriate consequential amendments to the Australian standards.\n\n  \n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2025-2 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\n\nThis standard has been made for Australian legislative purposes and accordingly there is no equivalent standard issued by the International Auditing and Assurance Standards Board (IAASB).","sortOrder":4},{"sectionNumber":"Reasons for Issuing ASA 2025-2","sectionType":"subdivision","heading":"Reasons for Issuing ASA 2025-2","content":"#### Reasons for Issuing ASA 2025-2\n\nThe Auditing and Assurance Standards Board (AUASB) issues Auditing Standard ASA 2025-2 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 (ASIC Act). Under section 336 of the Corporations Act 2001 (the Act), 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 makes amendments to the requirements and application & other explanatory material and appendices of the following Auditing Standards for minor updates on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General requirements for Sustainability Assurance Engagements:\n\nASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022)\n\nASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022)\n\nASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to March 2023)\n\nThe amendments are consistent with changes made by the International Auditing and Assurance Standards Board (IAASB) on the issuing of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements. Under the Strategic Direction given to the AUASB by the Financial Reporting Council, the AUASB is required to have regard to any programme initiated by the IAASB for the revision and enhancement of the standards issued by the IAASB and to make appropriate consequential amendments to the Australian standards.\n\n  \n\n## AUTHORITY STATEMENT\n\nThe Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2025-2 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\n\nThis standard has been made for Australian legislative purposes and accordingly there is no equivalent standard issued by the International Auditing and Assurance Standards Board (IAASB).","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 2025-2 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","content":"##### Conformity with International Standards\n\nThis standard has been made for Australian legislative purposes and accordingly there is no equivalent standard issued by the International Auditing and Assurance Standards Board (IAASB).","sortOrder":8},{"sectionNumber":"Auditing Standard ASA 2025-2","sectionType":"part","heading":"Auditing Standard ASA 2025-2","content":"## Auditing Standard ASA 2025-2\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  The amendments in this Standard apply in accordance with the application paragraphs (as amended by this Standard) of each amended standard.\n\n##### Operative Date\n\n1.  The amendments made by this Standard are operative as follows:\n    1.  Amendments to ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022) (ASQM 1) apply from 1 January 2025; and\n    2.  Amendments to the following standards apply for periods beginning on or after 1 January 2025:\n        1.  ASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022) (ASQM 2); and\n\n(ii) ASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to April 2022).\n\n##### Introduction\n\n###### Scope of this Standard\n\n1.  This Standard amends ASQM 1, ASQM 2 and ASA 720.\n\n##### Objective\n\n1.  The objective of this Standard is to amend ASQM 1, ASQM 2 and ASA 720 on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000), consistent with changes made to the corresponding standards issued by the International Auditing and Assurance Standards Board on the issue of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements.\n\n##### Definition\n\n1.  For the purposes of this Standard, terms have the meanings set out in each amended standard and in the AUASB Glossary, unless otherwise stated.\n\n##### Amendments to 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.\n2.  Where this amending standard inserts or deletes a footnote, subsequent footnotes and references thereto are updated throughout the amended standard.\n\n###### Amendments to ASQM 1\n\n1.  Paragraph Aus 0.1 of ASQM 1 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;\n\n1.  Paragraph Aus 4.1 of ASQM 1 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 16.7 of ASQM 1 is amended as follows:\n\nAUASB Standards means standards issued by the AUASB, comprising:\n\n(a) Australian Auditing Standards which means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n(b) Australian Standards on Review Engagements;\n\n(c) Australian Standards on Assurance Engagements; and\n\n(d) Australian Standards on Sustainability Assurance; and\n\n(de) Australian Standards on Related Services..\n\n1.  Paragraph Aus 16.8 of ASQM 1 is amended as follows:\n\nRelevant ethical requirements means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. (Ref: Para. A22-A24; A62)\n\n1.  Insert new paragraph Aus 16.9 after paragraph Aus 16.8 of ASQM 1 as follows:\n\nThe Code means:\n\n1.  for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n2.  for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\nAs a result of the insertion, ‘APESB Code’ will be replaced with ‘the Code’ throughout ASQM 1.\n\n1.  Paragraph A1 of ASQM 1 is amended to read as follows and footnotes 7 and 8 are inserted:\n\nOther pronouncements of the AUASB, including ASRE 24005 and ASAE 3000,6 also establish requirements for the engagement partner or engagement leader, as applicable, for the management of quality at the engagement level, including ASRE 24005 and ASAE 30006 for the engagement partner, and ASSA 5000[\\[7\\]](#_ftn1) for the engagement leader.[\\[8\\]](#_ftn2)for the management of quality at the engagement level.\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of this ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n2.  Paragraph A2 of ASQM 1 is amended to read as follows and footnote 9 is deleted:\n\nThe APESB Code9 contains requirements and application material for members or practitioners that enable members and practitioners to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member’s or practitioner’s responsibility to act in the public interest.\n\n1.  Paragraph A22 of ASQM 1 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable in the context of a system of quality management may vary, depending on the nature and circumstances of the firm and its engagements. The term “member” may be defined in relevant ethical requirements. For example, the APESB Code defines the term “member” and further explains the scope of provisions in the APESB Code that apply to individual members in public practice or practitioners and their firms.\n\n1.  Paragraph A23 of ASQM 1 is amended to read as follows:\n\nThe APESB Code addresses circumstances when law or regulation precludes the member from complying with certain parts of the APESB Code. It further acknowledges that some jurisdictions might have provisions in law or regulation that differ from or go beyond those set out in the APESB Code and that members or practitioners in those jurisdictions need to be aware of those differences and comply with the more stringent provisions, unless prohibited by law or regulation.\n\n1.  Paragraph A62 of ASQM 1 is amended to read as follows:\n\nThe APESB Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of a member or practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The APESB Code also specifies the approach that a member or practitioner is required to apply to comply with the fundamental principles and, when applicable, the Australian Independence Standards. In addition, the APESB Code addresses specific topics relevant to complying with the fundamental principles. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.\n\n1.  Paragraph A83 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the time limits by which the assembly of final engagement files for specific types of engagements are to be completed. Where no such time limits are prescribed in law or regulation, the time limit may be determined by the firm. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, an appropriate time limit within which to complete the assembly of the final engagement file is ordinarily not more than 60 days after the date of the engagement report.\n\n1.  Paragraph A85 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the retention periods for engagement documentation. If the retention periods are not prescribed, the firm may consider the nature of the engagements performed by the firm and the firm’s circumstances, including whether the engagement documentation is needed to provide a record of matters of continuing significance to future engagements. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, the retention period is ordinarily no shorter than five years from the date of the engagement report, or, if later, the date of the auditor’s report on the group financial report, when applicable.\n\n###### Amendments to ASQM 2\n\n1.  Paragraph Aus 0.1 of ASQM 2 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n‘(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;’\n\n1.  Paragraph Aus 0.2 of ASQM 2 is amended as follows:\n\nThis ASQM is effective for:\n\n(a) Audits and reviews of a financial report for periods beginning on or after 15 December 2022; and\n\n(b) Audits and reviews over information in sustainability reports and other sustainability information for periods beginning on or after 1 January 2025; and\n\n(bc) Other assurance and related services engagements beginning on or after 15 December 2022. \\[Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.\\]\n\n1.  Paragraph Aus 2.1 of ASQM 2 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM applies to all engagements for which an engagement quality review is required to be performed in accordance with ASQM 1.1 This ASQM is premised on the basis that the firm is subject to ASQM 1 or to national requirements that are at least as demanding. This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 13.1 of ASQM 2 is amended as follows:\n\n(d) ‘Relevant ethical requirements’ means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.\n\n(Ref: Para. A22-A24; A62)\n\n1.  Replace ‘APESB Code’ throughout ASQM 2 with ‘the Code’.\n2.  Insert new paragraph Aus 13.2 after paragraph Aus 13.1 of ASQM 2 as follows:\n\n(e) ‘the Code’ means:\n\n(i) for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n\n(ii) for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\n1.  Paragraph A12 of ASQM 2 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable when undertaking an engagement quality review may vary, depending on the nature and circumstances of the engagement or the entity. Various provisions of relevant ethical requirements may apply only to individual members or practitioners, such as an engagement quality reviewer, and not the firm itself.\n\n1.  Paragraph A13 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include specific independence requirements that would apply to individual members or practitioners, such as an engagement quality reviewer. Relevant ethical requirements may also include provisions that address threats to independence created by long association with an audit or assurance client. The application of any such provisions dealing with long association is distinct from, but may need to be taken into consideration in applying, the required cooling-off period in accordance with paragraph 19.\n\n1.  Paragraph A15 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include requirements and guidance to identify, evaluate and address threats to objectivity. For example, the APESB Code provides specific guidance, including examples of:\n\n-   Circumstances where threats to objectivity may be created when a member or practitioner is appointed as an engagement quality reviewer;\n-   Factors that are relevant in evaluating the level of such threats; and\n-   Actions, including safeguards, that might address such threats.\n\n1.  Paragraph A26 of ASQM 2 is amended to read as follows and footnotes 11 and 12 are inserted:\n\nASAE 300010 and ASSA 5000[\\[11\\]](#_ftn3) also establishes requirements for the engagement partner and engagement leader, respectively, in relation to the engagement quality review.[\\[12\\]](#_ftn4)\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n\n###### Amendments to ASA 720\n\n1.  The following is added to the end of paragraph A3 of ASA 720:\n\n-   Sustainability reports or other sustainability-related information.\n\n1.  Paragraph A5 of ASA 720 is amended to read as follows:\n\nAn annual report is different in nature, purpose and content from other reports, such as a report prepared to meet the information needs of a specific stakeholder group or a report prepared to comply with a specific regulatory reporting objective (even when such a report is required to be publicly available). Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report (subject to law, regulation or custom), and that, therefore, are not other information within the scope of this Auditing Standard, include:\n\n Sseparate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and superannuation industries, or special purpose reports addressing certain kinds of sustainability information.\n\n Corporate social responsibility reports.\n\n Sustainability reports.\n\n Diversity and equal opportunity reports.\n\n Product responsibility reports.\n\n Labour practices and working conditions reports.\n\n Human rights reports.\n\n\\* \\* \\*","sortOrder":9},{"sectionNumber":"Amendments to Australian Auditing Standa","sectionType":"division","heading":"Amendments to Australian Auditing Standards","content":"## Auditing Standard ASA 2025-2\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  The amendments in this Standard apply in accordance with the application paragraphs (as amended by this Standard) of each amended standard.\n\n##### Operative Date\n\n1.  The amendments made by this Standard are operative as follows:\n    1.  Amendments to ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022) (ASQM 1) apply from 1 January 2025; and\n    2.  Amendments to the following standards apply for periods beginning on or after 1 January 2025:\n        1.  ASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022) (ASQM 2); and\n\n(ii) ASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to April 2022).\n\n##### Introduction\n\n###### Scope of this Standard\n\n1.  This Standard amends ASQM 1, ASQM 2 and ASA 720.\n\n##### Objective\n\n1.  The objective of this Standard is to amend ASQM 1, ASQM 2 and ASA 720 on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000), consistent with changes made to the corresponding standards issued by the International Auditing and Assurance Standards Board on the issue of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements.\n\n##### Definition\n\n1.  For the purposes of this Standard, terms have the meanings set out in each amended standard and in the AUASB Glossary, unless otherwise stated.\n\n##### Amendments to 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.\n2.  Where this amending standard inserts or deletes a footnote, subsequent footnotes and references thereto are updated throughout the amended standard.\n\n###### Amendments to ASQM 1\n\n1.  Paragraph Aus 0.1 of ASQM 1 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;\n\n1.  Paragraph Aus 4.1 of ASQM 1 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 16.7 of ASQM 1 is amended as follows:\n\nAUASB Standards means standards issued by the AUASB, comprising:\n\n(a) Australian Auditing Standards which means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n(b) Australian Standards on Review Engagements;\n\n(c) Australian Standards on Assurance Engagements; and\n\n(d) Australian Standards on Sustainability Assurance; and\n\n(de) Australian Standards on Related Services..\n\n1.  Paragraph Aus 16.8 of ASQM 1 is amended as follows:\n\nRelevant ethical requirements means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. (Ref: Para. A22-A24; A62)\n\n1.  Insert new paragraph Aus 16.9 after paragraph Aus 16.8 of ASQM 1 as follows:\n\nThe Code means:\n\n1.  for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n2.  for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\nAs a result of the insertion, ‘APESB Code’ will be replaced with ‘the Code’ throughout ASQM 1.\n\n1.  Paragraph A1 of ASQM 1 is amended to read as follows and footnotes 7 and 8 are inserted:\n\nOther pronouncements of the AUASB, including ASRE 24005 and ASAE 3000,6 also establish requirements for the engagement partner or engagement leader, as applicable, for the management of quality at the engagement level, including ASRE 24005 and ASAE 30006 for the engagement partner, and ASSA 5000[\\[7\\]](#_ftn1) for the engagement leader.[\\[8\\]](#_ftn2)for the management of quality at the engagement level.\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of this ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n2.  Paragraph A2 of ASQM 1 is amended to read as follows and footnote 9 is deleted:\n\nThe APESB Code9 contains requirements and application material for members or practitioners that enable members and practitioners to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member’s or practitioner’s responsibility to act in the public interest.\n\n1.  Paragraph A22 of ASQM 1 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable in the context of a system of quality management may vary, depending on the nature and circumstances of the firm and its engagements. The term “member” may be defined in relevant ethical requirements. For example, the APESB Code defines the term “member” and further explains the scope of provisions in the APESB Code that apply to individual members in public practice or practitioners and their firms.\n\n1.  Paragraph A23 of ASQM 1 is amended to read as follows:\n\nThe APESB Code addresses circumstances when law or regulation precludes the member from complying with certain parts of the APESB Code. It further acknowledges that some jurisdictions might have provisions in law or regulation that differ from or go beyond those set out in the APESB Code and that members or practitioners in those jurisdictions need to be aware of those differences and comply with the more stringent provisions, unless prohibited by law or regulation.\n\n1.  Paragraph A62 of ASQM 1 is amended to read as follows:\n\nThe APESB Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of a member or practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The APESB Code also specifies the approach that a member or practitioner is required to apply to comply with the fundamental principles and, when applicable, the Australian Independence Standards. In addition, the APESB Code addresses specific topics relevant to complying with the fundamental principles. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.\n\n1.  Paragraph A83 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the time limits by which the assembly of final engagement files for specific types of engagements are to be completed. Where no such time limits are prescribed in law or regulation, the time limit may be determined by the firm. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, an appropriate time limit within which to complete the assembly of the final engagement file is ordinarily not more than 60 days after the date of the engagement report.\n\n1.  Paragraph A85 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the retention periods for engagement documentation. If the retention periods are not prescribed, the firm may consider the nature of the engagements performed by the firm and the firm’s circumstances, including whether the engagement documentation is needed to provide a record of matters of continuing significance to future engagements. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, the retention period is ordinarily no shorter than five years from the date of the engagement report, or, if later, the date of the auditor’s report on the group financial report, when applicable.\n\n###### Amendments to ASQM 2\n\n1.  Paragraph Aus 0.1 of ASQM 2 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n‘(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;’\n\n1.  Paragraph Aus 0.2 of ASQM 2 is amended as follows:\n\nThis ASQM is effective for:\n\n(a) Audits and reviews of a financial report for periods beginning on or after 15 December 2022; and\n\n(b) Audits and reviews over information in sustainability reports and other sustainability information for periods beginning on or after 1 January 2025; and\n\n(bc) Other assurance and related services engagements beginning on or after 15 December 2022. \\[Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.\\]\n\n1.  Paragraph Aus 2.1 of ASQM 2 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM applies to all engagements for which an engagement quality review is required to be performed in accordance with ASQM 1.1 This ASQM is premised on the basis that the firm is subject to ASQM 1 or to national requirements that are at least as demanding. This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 13.1 of ASQM 2 is amended as follows:\n\n(d) ‘Relevant ethical requirements’ means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.\n\n(Ref: Para. A22-A24; A62)\n\n1.  Replace ‘APESB Code’ throughout ASQM 2 with ‘the Code’.\n2.  Insert new paragraph Aus 13.2 after paragraph Aus 13.1 of ASQM 2 as follows:\n\n(e) ‘the Code’ means:\n\n(i) for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n\n(ii) for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\n1.  Paragraph A12 of ASQM 2 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable when undertaking an engagement quality review may vary, depending on the nature and circumstances of the engagement or the entity. Various provisions of relevant ethical requirements may apply only to individual members or practitioners, such as an engagement quality reviewer, and not the firm itself.\n\n1.  Paragraph A13 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include specific independence requirements that would apply to individual members or practitioners, such as an engagement quality reviewer. Relevant ethical requirements may also include provisions that address threats to independence created by long association with an audit or assurance client. The application of any such provisions dealing with long association is distinct from, but may need to be taken into consideration in applying, the required cooling-off period in accordance with paragraph 19.\n\n1.  Paragraph A15 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include requirements and guidance to identify, evaluate and address threats to objectivity. For example, the APESB Code provides specific guidance, including examples of:\n\n-   Circumstances where threats to objectivity may be created when a member or practitioner is appointed as an engagement quality reviewer;\n-   Factors that are relevant in evaluating the level of such threats; and\n-   Actions, including safeguards, that might address such threats.\n\n1.  Paragraph A26 of ASQM 2 is amended to read as follows and footnotes 11 and 12 are inserted:\n\nASAE 300010 and ASSA 5000[\\[11\\]](#_ftn3) also establishes requirements for the engagement partner and engagement leader, respectively, in relation to the engagement quality review.[\\[12\\]](#_ftn4)\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n\n###### Amendments to ASA 720\n\n1.  The following is added to the end of paragraph A3 of ASA 720:\n\n-   Sustainability reports or other sustainability-related information.\n\n1.  Paragraph A5 of ASA 720 is amended to read as follows:\n\nAn annual report is different in nature, purpose and content from other reports, such as a report prepared to meet the information needs of a specific stakeholder group or a report prepared to comply with a specific regulatory reporting objective (even when such a report is required to be publicly available). Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report (subject to law, regulation or custom), and that, therefore, are not other information within the scope of this Auditing Standard, include:\n\n Sseparate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and superannuation industries, or special purpose reports addressing certain kinds of sustainability information.\n\n Corporate social responsibility reports.\n\n Sustainability reports.\n\n Diversity and equal opportunity reports.\n\n Product responsibility reports.\n\n Labour practices and working conditions reports.\n\n Human rights reports.\n\n\\* \\* \\*","sortOrder":10},{"sectionNumber":"Application","sectionType":"section","heading":"Application","content":"##### Application\n\n1.  The amendments in this Standard apply in accordance with the application paragraphs (as amended by this Standard) of each amended standard.","sortOrder":11},{"sectionNumber":"Operative Date","sectionType":"section","heading":"Operative Date","content":"##### Operative Date\n\n1.  The amendments made by this Standard are operative as follows:\n    1.  Amendments to ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022) (ASQM 1) apply from 1 January 2025; and\n    2.  Amendments to the following standards apply for periods beginning on or after 1 January 2025:\n        1.  ASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022) (ASQM 2); and\n\n(ii) ASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to April 2022).","sortOrder":12},{"sectionNumber":"Introduction","sectionType":"section","heading":"Introduction","content":"## Auditing Standard ASA 2025-2\n\n### Amendments to Australian Auditing Standards\n\n##### Application\n\n1.  The amendments in this Standard apply in accordance with the application paragraphs (as amended by this Standard) of each amended standard.\n\n##### Operative Date\n\n1.  The amendments made by this Standard are operative as follows:\n    1.  Amendments to ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements (Issued March 2021 and amended to April 2022) (ASQM 1) apply from 1 January 2025; and\n    2.  Amendments to the following standards apply for periods beginning on or after 1 January 2025:\n        1.  ASQM 2 Engagement Quality Reviews (Issued March 2021 and amended to April 2022) (ASQM 2); and\n\n(ii) ASA 720 The Auditor's Responsibilities Relating to Other Information (Issued December 2015 and amended to April 2022).\n\n##### Introduction\n\n###### Scope of this Standard\n\n1.  This Standard amends ASQM 1, ASQM 2 and ASA 720.\n\n##### Objective\n\n1.  The objective of this Standard is to amend ASQM 1, ASQM 2 and ASA 720 on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000), consistent with changes made to the corresponding standards issued by the International Auditing and Assurance Standards Board on the issue of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements.\n\n##### Definition\n\n1.  For the purposes of this Standard, terms have the meanings set out in each amended standard and in the AUASB Glossary, unless otherwise stated.\n\n##### Amendments to 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.\n2.  Where this amending standard inserts or deletes a footnote, subsequent footnotes and references thereto are updated throughout the amended standard.\n\n###### Amendments to ASQM 1\n\n1.  Paragraph Aus 0.1 of ASQM 1 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;\n\n1.  Paragraph Aus 4.1 of ASQM 1 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 16.7 of ASQM 1 is amended as follows:\n\nAUASB Standards means standards issued by the AUASB, comprising:\n\n(a) Australian Auditing Standards which means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n(b) Australian Standards on Review Engagements;\n\n(c) Australian Standards on Assurance Engagements; and\n\n(d) Australian Standards on Sustainability Assurance; and\n\n(de) Australian Standards on Related Services..\n\n1.  Paragraph Aus 16.8 of ASQM 1 is amended as follows:\n\nRelevant ethical requirements means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. (Ref: Para. A22-A24; A62)\n\n1.  Insert new paragraph Aus 16.9 after paragraph Aus 16.8 of ASQM 1 as follows:\n\nThe Code means:\n\n1.  for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n2.  for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\nAs a result of the insertion, ‘APESB Code’ will be replaced with ‘the Code’ throughout ASQM 1.\n\n1.  Paragraph A1 of ASQM 1 is amended to read as follows and footnotes 7 and 8 are inserted:\n\nOther pronouncements of the AUASB, including ASRE 24005 and ASAE 3000,6 also establish requirements for the engagement partner or engagement leader, as applicable, for the management of quality at the engagement level, including ASRE 24005 and ASAE 30006 for the engagement partner, and ASSA 5000[\\[7\\]](#_ftn1) for the engagement leader.[\\[8\\]](#_ftn2)for the management of quality at the engagement level.\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of this ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n2.  Paragraph A2 of ASQM 1 is amended to read as follows and footnote 9 is deleted:\n\nThe APESB Code9 contains requirements and application material for members or practitioners that enable members and practitioners to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member’s or practitioner’s responsibility to act in the public interest.\n\n1.  Paragraph A22 of ASQM 1 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable in the context of a system of quality management may vary, depending on the nature and circumstances of the firm and its engagements. The term “member” may be defined in relevant ethical requirements. For example, the APESB Code defines the term “member” and further explains the scope of provisions in the APESB Code that apply to individual members in public practice or practitioners and their firms.\n\n1.  Paragraph A23 of ASQM 1 is amended to read as follows:\n\nThe APESB Code addresses circumstances when law or regulation precludes the member from complying with certain parts of the APESB Code. It further acknowledges that some jurisdictions might have provisions in law or regulation that differ from or go beyond those set out in the APESB Code and that members or practitioners in those jurisdictions need to be aware of those differences and comply with the more stringent provisions, unless prohibited by law or regulation.\n\n1.  Paragraph A62 of ASQM 1 is amended to read as follows:\n\nThe APESB Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of a member or practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The APESB Code also specifies the approach that a member or practitioner is required to apply to comply with the fundamental principles and, when applicable, the Australian Independence Standards. In addition, the APESB Code addresses specific topics relevant to complying with the fundamental principles. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.\n\n1.  Paragraph A83 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the time limits by which the assembly of final engagement files for specific types of engagements are to be completed. Where no such time limits are prescribed in law or regulation, the time limit may be determined by the firm. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, an appropriate time limit within which to complete the assembly of the final engagement file is ordinarily not more than 60 days after the date of the engagement report.\n\n1.  Paragraph A85 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the retention periods for engagement documentation. If the retention periods are not prescribed, the firm may consider the nature of the engagements performed by the firm and the firm’s circumstances, including whether the engagement documentation is needed to provide a record of matters of continuing significance to future engagements. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, the retention period is ordinarily no shorter than five years from the date of the engagement report, or, if later, the date of the auditor’s report on the group financial report, when applicable.\n\n###### Amendments to ASQM 2\n\n1.  Paragraph Aus 0.1 of ASQM 2 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n‘(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;’\n\n1.  Paragraph Aus 0.2 of ASQM 2 is amended as follows:\n\nThis ASQM is effective for:\n\n(a) Audits and reviews of a financial report for periods beginning on or after 15 December 2022; and\n\n(b) Audits and reviews over information in sustainability reports and other sustainability information for periods beginning on or after 1 January 2025; and\n\n(bc) Other assurance and related services engagements beginning on or after 15 December 2022. \\[Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.\\]\n\n1.  Paragraph Aus 2.1 of ASQM 2 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM applies to all engagements for which an engagement quality review is required to be performed in accordance with ASQM 1.1 This ASQM is premised on the basis that the firm is subject to ASQM 1 or to national requirements that are at least as demanding. This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 13.1 of ASQM 2 is amended as follows:\n\n(d) ‘Relevant ethical requirements’ means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.\n\n(Ref: Para. A22-A24; A62)\n\n1.  Replace ‘APESB Code’ throughout ASQM 2 with ‘the Code’.\n2.  Insert new paragraph Aus 13.2 after paragraph Aus 13.1 of ASQM 2 as follows:\n\n(e) ‘the Code’ means:\n\n(i) for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n\n(ii) for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\n1.  Paragraph A12 of ASQM 2 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable when undertaking an engagement quality review may vary, depending on the nature and circumstances of the engagement or the entity. Various provisions of relevant ethical requirements may apply only to individual members or practitioners, such as an engagement quality reviewer, and not the firm itself.\n\n1.  Paragraph A13 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include specific independence requirements that would apply to individual members or practitioners, such as an engagement quality reviewer. Relevant ethical requirements may also include provisions that address threats to independence created by long association with an audit or assurance client. The application of any such provisions dealing with long association is distinct from, but may need to be taken into consideration in applying, the required cooling-off period in accordance with paragraph 19.\n\n1.  Paragraph A15 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include requirements and guidance to identify, evaluate and address threats to objectivity. For example, the APESB Code provides specific guidance, including examples of:\n\n-   Circumstances where threats to objectivity may be created when a member or practitioner is appointed as an engagement quality reviewer;\n-   Factors that are relevant in evaluating the level of such threats; and\n-   Actions, including safeguards, that might address such threats.\n\n1.  Paragraph A26 of ASQM 2 is amended to read as follows and footnotes 11 and 12 are inserted:\n\nASAE 300010 and ASSA 5000[\\[11\\]](#_ftn3) also establishes requirements for the engagement partner and engagement leader, respectively, in relation to the engagement quality review.[\\[12\\]](#_ftn4)\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n\n###### Amendments to ASA 720\n\n1.  The following is added to the end of paragraph A3 of ASA 720:\n\n-   Sustainability reports or other sustainability-related information.\n\n1.  Paragraph A5 of ASA 720 is amended to read as follows:\n\nAn annual report is different in nature, purpose and content from other reports, such as a report prepared to meet the information needs of a specific stakeholder group or a report prepared to comply with a specific regulatory reporting objective (even when such a report is required to be publicly available). Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report (subject to law, regulation or custom), and that, therefore, are not other information within the scope of this Auditing Standard, include:\n\n Sseparate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and superannuation industries, or special purpose reports addressing certain kinds of sustainability information.\n\n Corporate social responsibility reports.\n\n Sustainability reports.\n\n Diversity and equal opportunity reports.\n\n Product responsibility reports.\n\n Labour practices and working conditions reports.\n\n Human rights reports.\n\n\\* \\* \\*","sortOrder":13},{"sectionNumber":"Scope of this Standard","sectionType":"section","heading":"Scope of this Standard","content":"###### Scope of this Standard\n\n1.  This Standard amends ASQM 1, ASQM 2 and ASA 720.","sortOrder":14},{"sectionNumber":"Objective","sectionType":"section","heading":"Objective","content":"##### Objective\n\n1.  The objective of this Standard is to amend ASQM 1, ASQM 2 and ASA 720 on the issue of Australian Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000), consistent with changes made to the corresponding standards issued by the International Auditing and Assurance Standards Board on the issue of International Standard on Sustainability Assurance ISSA 5000 General Requirements for Sustainability Assurance Engagements.","sortOrder":15},{"sectionNumber":"Definition","sectionType":"section","heading":"Definition","content":"##### Definition\n\n1.  For the purposes of this Standard, terms have the meanings set out in each amended standard and in the AUASB Glossary, unless otherwise stated.","sortOrder":16},{"sectionNumber":"Amendments to Standards","sectionType":"section","heading":"Amendments to Standards","content":"##### Amendments to 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.\n2.  Where this amending standard inserts or deletes a footnote, subsequent footnotes and references thereto are updated throughout the amended standard.","sortOrder":17},{"sectionNumber":"Amendments to ASQM 1","sectionType":"section","heading":"Amendments to ASQM 1","content":"###### Amendments to ASQM 1\n\n1.  Paragraph Aus 0.1 of ASQM 1 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;\n\n1.  Paragraph Aus 4.1 of ASQM 1 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 16.7 of ASQM 1 is amended as follows:\n\nAUASB Standards means standards issued by the AUASB, comprising:\n\n(a) Australian Auditing Standards which means the suite of auditing standards issued by the AUASB, comprising:\n\n-   Auditing Standards made under section 336 of the Corporations Act 2001;\n-   ASA 805 Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and\n-   ASA 810 Engagements to Report on Summary Financial Statements.\n\n(b) Australian Standards on Review Engagements;\n\n(c) Australian Standards on Assurance Engagements; and\n\n(d) Australian Standards on Sustainability Assurance; and\n\n(de) Australian Standards on Related Services..\n\n1.  Paragraph Aus 16.8 of ASQM 1 is amended as follows:\n\nRelevant ethical requirements means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. (Ref: Para. A22-A24; A62)\n\n1.  Insert new paragraph Aus 16.9 after paragraph Aus 16.8 of ASQM 1 as follows:\n\nThe Code means:\n\n1.  for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n2.  for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\nAs a result of the insertion, ‘APESB Code’ will be replaced with ‘the Code’ throughout ASQM 1.\n\n1.  Paragraph A1 of ASQM 1 is amended to read as follows and footnotes 7 and 8 are inserted:\n\nOther pronouncements of the AUASB, including ASRE 24005 and ASAE 3000,6 also establish requirements for the engagement partner or engagement leader, as applicable, for the management of quality at the engagement level, including ASRE 24005 and ASAE 30006 for the engagement partner, and ASSA 5000[\\[7\\]](#_ftn1) for the engagement leader.[\\[8\\]](#_ftn2)for the management of quality at the engagement level.\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of this ASQM 1 are re-numbered and references to these footnotes are updated accordingly.\n2.  Paragraph A2 of ASQM 1 is amended to read as follows and footnote 9 is deleted:\n\nThe APESB Code9 contains requirements and application material for members or practitioners that enable members and practitioners to meet their responsibility to act in the public interest. As indicated in paragraph 15, in the context of engagement performance as described in this ASQM, the consistent performance of quality engagements forms part of the member’s or practitioner’s responsibility to act in the public interest.\n\n1.  Paragraph A22 of ASQM 1 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable in the context of a system of quality management may vary, depending on the nature and circumstances of the firm and its engagements. The term “member” may be defined in relevant ethical requirements. For example, the APESB Code defines the term “member” and further explains the scope of provisions in the APESB Code that apply to individual members in public practice or practitioners and their firms.\n\n1.  Paragraph A23 of ASQM 1 is amended to read as follows:\n\nThe APESB Code addresses circumstances when law or regulation precludes the member from complying with certain parts of the APESB Code. It further acknowledges that some jurisdictions might have provisions in law or regulation that differ from or go beyond those set out in the APESB Code and that members or practitioners in those jurisdictions need to be aware of those differences and comply with the more stringent provisions, unless prohibited by law or regulation.\n\n1.  Paragraph A62 of ASQM 1 is amended to read as follows:\n\nThe APESB Code sets out the fundamental principles of ethics that establish the standards of behaviour expected of a member or practitioner and establishes the Australian Independence Standards. The fundamental principles are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The APESB Code also specifies the approach that a member or practitioner is required to apply to comply with the fundamental principles and, when applicable, the Australian Independence Standards. In addition, the APESB Code addresses specific topics relevant to complying with the fundamental principles. Law or regulation in a jurisdiction may also contain provisions addressing ethical requirements, including independence, such as privacy laws affecting the confidentiality of information.\n\n1.  Paragraph A83 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the time limits by which the assembly of final engagement files for specific types of engagements are to be completed. Where no such time limits are prescribed in law or regulation, the time limit may be determined by the firm. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, an appropriate time limit within which to complete the assembly of the final engagement file is ordinarily not more than 60 days after the date of the engagement report.\n\n1.  Paragraph A85 of ASQM 1 is amended to read as follows:\n\nLaw, regulation or AUASB standards may prescribe the retention periods for engagement documentation. If the retention periods are not prescribed, the firm may consider the nature of the engagements performed by the firm and the firm’s circumstances, including whether the engagement documentation is needed to provide a record of matters of continuing significance to future engagements. In the case of engagements conducted under the ASAs, ASSAs or ASAEs, the retention period is ordinarily no shorter than five years from the date of the engagement report, or, if later, the date of the auditor’s report on the group financial report, when applicable.","sortOrder":18},{"sectionNumber":"Amendments to ASQM 2","sectionType":"section","heading":"Amendments to ASQM 2","content":"###### Amendments to ASQM 2\n\n1.  Paragraph Aus 0.1 of ASQM 2 is amended as follows:\n    1.  Subparagraph (e) becomes subparagraph (g);\n    2.  Subparagraph (f) becomes subparagraph (h);\n    3.  Insert the following new subparagraphs:\n\n‘(e) assurance over information in sustainability reports for the purposes of Chapter 2M of the Corporations Act 2001;\n\n(f) assurance over other sustainability information for other purposes;’\n\n1.  Paragraph Aus 0.2 of ASQM 2 is amended as follows:\n\nThis ASQM is effective for:\n\n(a) Audits and reviews of a financial report for periods beginning on or after 15 December 2022; and\n\n(b) Audits and reviews over information in sustainability reports and other sustainability information for periods beginning on or after 1 January 2025; and\n\n(bc) Other assurance and related services engagements beginning on or after 15 December 2022. \\[Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.\\]\n\n1.  Paragraph Aus 2.1 of ASQM 2 is amended as follows and footnote ‘\\*’ removed:\n\nThis ASQM applies to all engagements for which an engagement quality review is required to be performed in accordance with ASQM 1.1 This ASQM is premised on the basis that the firm is subject to ASQM 1 or to national requirements that are at least as demanding. This ASQM is to be read in conjunction with relevant ethical requirements. Relevant ethical requirements are defined in paragraph Aus 16.8ASA 102.\\* Law, regulation or relevant ethical requirements may establish responsibilities for the firm’s management of quality beyond those described in this ASQM (Ref: Para. A2).\n\n1.  Paragraph Aus 13.1 of ASQM 2 is amended as follows:\n\n(d) ‘Relevant ethical requirements’ means:\n\n(i) for sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASSA 5000 General Requirements for Sustainability Assurance Engagements (ASSA 5000); and\n\n(ii) for engagements other than sustainability assurance engagements, ‘relevant ethical requirements’ as defined in ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements.\n\n(Ref: Para. A22-A24; A62)\n\n1.  Replace ‘APESB Code’ throughout ASQM 2 with ‘the Code’.\n2.  Insert new paragraph Aus 13.2 after paragraph Aus 13.1 of ASQM 2 as follows:\n\n(e) ‘the Code’ means:\n\n(i) for sustainability assurance engagements, ‘the Code’ as defined in ASSA 5000; and\n\n(ii) for engagements other than sustainability assurance engagements, APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional & Ethical Standards Board.\n\n1.  Paragraph A12 of ASQM 2 is amended to read as follows:\n\nThe relevant ethical requirements that are applicable when undertaking an engagement quality review may vary, depending on the nature and circumstances of the engagement or the entity. Various provisions of relevant ethical requirements may apply only to individual members or practitioners, such as an engagement quality reviewer, and not the firm itself.\n\n1.  Paragraph A13 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include specific independence requirements that would apply to individual members or practitioners, such as an engagement quality reviewer. Relevant ethical requirements may also include provisions that address threats to independence created by long association with an audit or assurance client. The application of any such provisions dealing with long association is distinct from, but may need to be taken into consideration in applying, the required cooling-off period in accordance with paragraph 19.\n\n1.  Paragraph A15 of ASQM 2 is amended to read as follows:\n\nRelevant ethical requirements may include requirements and guidance to identify, evaluate and address threats to objectivity. For example, the APESB Code provides specific guidance, including examples of:\n\n-   Circumstances where threats to objectivity may be created when a member or practitioner is appointed as an engagement quality reviewer;\n-   Factors that are relevant in evaluating the level of such threats; and\n-   Actions, including safeguards, that might address such threats.\n\n1.  Paragraph A26 of ASQM 2 is amended to read as follows and footnotes 11 and 12 are inserted:\n\nASAE 300010 and ASSA 5000[\\[11\\]](#_ftn3) also establishes requirements for the engagement partner and engagement leader, respectively, in relation to the engagement quality review.[\\[12\\]](#_ftn4)\n\n1.  As a result of the footnotes insertion above, subsequent footnotes of ASQM 1 are re-numbered and references to these footnotes are updated accordingly.","sortOrder":19},{"sectionNumber":"Amendments to ASA 720","sectionType":"section","heading":"Amendments to ASA 720","content":"###### Amendments to ASA 720\n\n1.  The following is added to the end of paragraph A3 of ASA 720:\n\n-   Sustainability reports or other sustainability-related information.\n\n1.  Paragraph A5 of ASA 720 is amended to read as follows:\n\nAn annual report is different in nature, purpose and content from other reports, such as a report prepared to meet the information needs of a specific stakeholder group or a report prepared to comply with a specific regulatory reporting objective (even when such a report is required to be publicly available). Examples of reports that, when issued as standalone documents, are not typically part of the combination of documents that comprise an annual report (subject to law, regulation or custom), and that, therefore, are not other information within the scope of this Auditing Standard, include:\n\n Sseparate industry or regulatory reports (for example, capital adequacy reports), such as may be prepared in the banking, insurance, and superannuation industries, or special purpose reports addressing certain kinds of sustainability information.\n\n Corporate social responsibility reports.\n\n Sustainability reports.\n\n Diversity and equal opportunity reports.\n\n Product responsibility reports.\n\n Labour practices and working conditions reports.\n\n Human rights reports.\n\n\\* \\* \\*","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":4,"scope_assessment":{"changed":false,"description":"The instrument is consequential: its stated purpose is to amend ASQM 1, ASQM 2 and ASA 720 to reflect the new ASSA 5000 sustainability assurance standard. The amendments insert sustainability assurance into the existing quality‑management and other‑information frameworks, redefine which ethical code applies depending on engagement type, and update related guidance and timelines. These changes operate within the original, stated scope (alignment with ASSA 5000) rather than expanding the standards beyond that purpose."},"complexity_factors":["Amendments affect three separate standards (ASQM 1, ASQM 2, ASA 720) requiring cross‑reading","Several new defined references to ASSA 5000 and replacement of existing terminology (replacement of ‘APESB Code’ with ‘the Code’)","Multiple inserted and renumbered footnotes (requires careful re‑mapping)","Operative-date staging (some provisions effective for periods beginning on/after 1 Jan 2025; others reference earlier dates)","Mix of requirements and explanatory material changes (both requirements and guidance paragraphs amended)","Changes to ethical‑requirements mapping which creates conditional logic depending on engagement type (sustainability vs other engagements)","Adjustments to engagement‑level responsibilities and EQR scope (requires firms to reassess processes and personnel)"],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- Updates three existing Australian quality-management and auditing standards (ASQM 1, ASQM 2 and ASA 720) to reflect the introduction of the Australian Standard on Sustainability Assurance (ASSA 5000). The changes are consequential and cross‑refer to ASSA 5000. (See: Objective; Amendments to Standards; Aus 0.1 of ASQM 1 and ASQM 2.)\n\n- Adds explicit references and scope language so that sustainability assurance engagements (both those done to satisfy Chapter 2M of the Corporations Act and other sustainability assurance work) are captured by the quality-management and engagement-quality-review (EQR) rules in ASQM 1 and ASQM 2. (See: ASQM 1 Aus 0.1 inserted subparas (e)–(f); ASQM 2 Aus 0.1 and Aus 0.2.)\n\n- Changes which ethical code applies depending on the engagement type: for sustainability assurance engagements the relevant ethical requirements and “the Code” are those defined in ASSA 5000; for other engagements the existing Australian ethics references remain (ASA 102 and APES 110). The text replaces the phrase “APESB Code” with the term “the Code” and defines it by reference to the engagement type. (See: ASQM 1 Aus 16.8–16.9 and corresponding ASQM 2 amendments.)\n\n- Updates explanatory material on engagement-level responsibilities by explicitly pointing to ASSA 5000 as establishing requirements for the engagement leader on sustainability assurance engagements and inserts related footnotes. (See: ASQM 1 A1 and ASQM 2 A26.)\n\n- Confirms practical administration timelines and retention expectations in the quality-management guidance: assembly of final engagement files ordinarily within 60 days of the engagement report and retention ordinarily no shorter than five years for engagements under ASAs, ASSAs or ASAEs. (See: ASQM 1 A83–A85.)\n\n- Adjusts ASA 720 (other information) to note sustainability reports and other sustainability-related information in the non‑financial-material examples. It also lists sustainability reports among documents that, when standalone, are typically not “other information” within ASA 720’s scope. (See: ASA 720 A3 addition and amended A5.)\n\n**Who is affected**\n\n- Audit, assurance and sustainability‑assurance firms and practitioners. Firms that perform sustainability assurance engagements will need to apply ASSA 5000 alongside ASQM 1/2 and ASA 720 as relevant. (ASQM 1 Aus 0.1; ASQM 2 Aus 0.2; Objective.)\n\n- Engagement leaders and engagement quality reviewers. The amendments expressly link engagement‑level responsibilities for sustainability assurance to ASSA 5000 and clarify which ethical code applies to individuals. (ASQM 1 A1; ASQM 2 A26; Aus 16.9 of ASQM 1; Aus 13.2 of ASQM 2.)\n\n- Smaller firms and sole practitioners offering sustainability assurance may incur additional compliance effort to meet EQR, quality‑management and ethical requirements now cross‑linked to ASSA 5000. (ASQM 1 and ASQM 2 amendments generally.)\n\n**Why it matters (practical effects and implementation mechanics)**\n\n- Aligns Australian practice with the newly issued Australian sustainability assurance standard (ASSA 5000) so sustainability assurance is governed by the AUASB suite rather than left to ad hoc interpretation. The AUASB states this alignment is to be consistent with IAASB changes; the explicit purpose is to make consequential amendments following ASSA 5000. (Objective; Preface — Reasons for issuing.)\n\n- Compliance and operational impact: firms will need to update policies, training, engagement checklists and possibly staffing. Specifically, they must: determine which ethical requirements apply depending on engagement type (ASSA 5000 vs APES 110/ASA 102); apply EQR rules where required; and meet the clarified file assembly and retention expectations. (ASQM 1 Aus 16.8–16.9; ASQM 2 Aus 13.1–13.2; A83–A85.)\n\n- Who pays and who decides: the compliance costs fall on firms and ultimately on clients that procure assurance services (time, training, systems). The firm (and engagement partner/leader) decides on operational implementation (assignment of engagement leader, application of the appropriate Code, whether EQRs are required). The AUASB decides the standard text and operative dates. (ASQM 1/2 application and operative date paragraphs.)\n\n**Incentives, trade‑offs and implementation risks (light, practical scan)**\n\n- Concentrated costs: the increased administrative and compliance burden is concentrated on firms that already do or plan to do sustainability assurance. Larger firms with established quality systems will find change incremental; smaller firms face proportionally higher one‑off and ongoing costs (training, procedures, possibly additional reviewers). (Inferred from the expanded applicability in ASQM 1 and ASQM 2.)\n\n- Behavioural change: firms may reallocate resources (engagement leaders, EQRs, documentation) toward sustainability assurance work to meet the new cross‑references. That can raise the price of sustainability assurance or discourage marginal providers. (Affected paragraphs: ASQM 1 Aus 0.1; ASQM 2 Aus 0.2; A83–A85.)\n\n- Substitution effects: some firms that currently offer limited sustainability assurance might exit or scale back if compliance costs exceed expected fees; conversely, audit firms with existing systems may expand into sustainability assurance. (Logical consequence of the added requirements.)\n\n- Implementation risk: there are numerous cross‑references, replacement of terminology (APESB Code → “the Code”), and inserted footnotes. Firms and regulators will need careful mapping to ensure consistent interpretation across ASQM 1, ASQM 2, ASA 720 and the new ASSA 5000. (See Amendments to Standards; Aus 16.9 insertion.)\n\n**Concrete legal timings**\n\n- Most amendments are operative for engagements or periods beginning on or after 1 January 2025 (explicit for ASQM 1, ASQM 2 and ASA 720 as set out in the Operative Date paragraphs). (Operative Date.)\n\n**Relevant sections to check when implementing**\n\n- ASQM 1 Aus 0.1, Aus 16.7–16.9, A1, A83–A85.\n- ASQM 2 Aus 0.1–0.2, Aus 13.1–13.2, A12–A15, A26.\n- ASA 720 additions to A3 and amended A5.\n\n(Those section references are where the standard inserts the sustainability cross‑references, defines which ethical code applies, and clarifies administrative timelines.)"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This amending standard maintains its original scope as a consequential amendment instrument. It was always intended to update existing quality management and other information standards to accommodate the new sustainability assurance framework. The amendments remain tightly focused on incorporating ASSA 5000 references and creating parallel ethical requirement structures without expanding into substantive new audit methodologies."},"complexity_factors":["Extensive cross-referencing to three separate existing standards (ASQM 1, ASQM 2, ASA 720) plus the new ASSA 5000","Dual-definition structure requiring conditional logic (different ethical requirements for sustainability vs non-sustainability engagements)","Footnote renumbering cascades affecting multiple paragraphs across all amended standards","Terminology substitution required throughout ('APESB Code' replaced with 'the Code' with context-dependent meanings)","Multiple operative dates with staggered application (1 January 2025 for sustainability elements vs 15 December 2022 for financial elements)","Technical jargon including 'engagement quality review', 'engagement leader' vs 'engagement partner', and 'ASSA' vs 'ASA' distinctions"],"plain_english_summary":"This instrument modernises Australia’s auditing framework to cover sustainability assurance alongside financial audits, adding sustainability standards into audit definitions, ethical frameworks, and recordkeeping rules. \n\nIt affects accounting firms, auditors and companies subject to the 2025 mandatory sustainability reporting regime by giving auditors clear quality‑management, ethics and file‑retention requirements so sustainability disclosures can be reliably assured."}},"importantCases":[],"_links":{"self":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards","history":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards/history","analysis":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards/analysis","conflicts":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards/conflicts","importantCases":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards/important-cases","documents":"/api/acts/auditing-standard-asa-2025-2-amendments-to-australian-auditing-standards/documents"}}