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ISSN 1833‑4393

CONTENTS

COMPILATION DETAILS

AUTHORITY STATEMENT

CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING

Paragraphs

Application......................................................Aus 0.1-Aus 0.2

Operative Date.........................................................Aus 0.3

Introduction

Scope of this Auditing Standard..................................................1

Effective Date...............................................................2

Objective..................................................................3

Definitions.................................................................4

Requirements

Accumulation of Identified Misstatements...........................................5

Consideration of Identified Misstatements as the Audit Progresses........................6-7

Communication and Correction of Misstatements....................................8-9

Evaluating the Effect of Uncorrected Misstatements.................................10-13

Written Representation........................................................14

Documentation..............................................................15

Application and Other Explanatory Material

Definition of Misstatement.....................................................A1

Accumulation of Identified Misstatements..........................................A2

Misstatements in Individual Statements............................................A3

Misstatements in Disclosures...................................................A4

Accumulation of Misstatements..............................................A5-A6

Consideration of Identified Misstatements as the Audit Progresses.....................A7-A9

Communication and Correction of Misstatements................................A10-A13

Evaluating the Effect of Uncorrected Misstatements..............................A14-A28

Written Representation.......................................................A29

Documentation............................................................A30

COMPILATION DETAILS

Auditing Standard ASA 450 Evaluation of Misstatements Identified during the Audit (as Amended)

This compilation takes into account amendments made up to and including 30 May 2017 and was prepared on 30 May 2017 by the Auditing and Assurance Standards Board (AUASB).

This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 450 (October 2009) as amended by another Auditing Standard which is listed in the Table below.

Table of Standards

[A] Federal Register of Legislative Instruments – registration number F2009L04083, 11 November 2009

[B] Federal Register of Legislative Instruments – registration number F2015L02032, 16 December 2015

[C] Federal Register of Legislative Instruments – registration number F2017L01179TBD, TBD13 September 2017

Table of Amendments

AUTHORITY STATEMENT

Auditing Standard ASA 450 Evaluation of Misstatements Identified during the Audit (as amended to 30 May 2017) is set out in paragraphs Aus 0.1 to A30.

This Auditing Standard is to be read in conjunction with ASA 101 Preamble to Australian Auditing Standards, which sets out the intentions of the AUASB on how the Australian Auditing Standards, operative for financial reporting periods commencing on or after 1 January 2010, are to be understood, interpreted and applied. This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.

Dated: 30 May 2017

Conformity with International Standards on Auditing

This Auditing Standard conforms with International Standard on Auditing ISA 450 Evaluation of Misstatements Identified during the Audit issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).

Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.

The equivalent requirements and related application and other explanatory material included in ISA 450 in respect of “relevant ethical requirements”, have been included in Auditing Standard, ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. There is no international equivalent to ASA 102.

Compliance with this Auditing Standard enables compliance with ISA 450.