ASA 260 - Communication of Audit Matters with Those Charged With Governance - April 2006
Communicating Auditor Independence RequiCommunicating Auditor Independence Requirements
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Communicating Auditor Independence Requirements
20 When the audit is conducted under Part 2M.3 of the Corporations Act 2001, the auditor shall communicate directly with those charged with governance:
(a) a statement as to whether the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms are independent in accordance with relevant ethical requirements and any regulatory requirements that apply to the audit engagement; and
(b) (i) details of relationships that may reasonably have a bearing on auditor independence, as outlined in relevant ethical requirements relating to audit engagements;[3] and
(ii) the related safeguards that have been applied to eliminate threats to independence or reduce them to an acceptable level.
21 The auditor ordinarily considers whether the communications set out in paragraph 20 of this Auditing Standard are also relevant in the case of other audits, particularly those of entities that may be of significant public interest because, as a result of their business, their size or their corporate status, they have a wide range of stakeholders. Examples of such entities might include public sector entities, certain unincorporated associations, and superannuation funds.