Evaluation of Misstatements Identified dEvaluation of Misstatements Identified during the Audit

Auditing Standard ASA 450

The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 450 Evaluation of Misstatements Identified during the Audit pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on 27 October 2009.

This compiled version of ASA 450 incorporates subsequent amendments contained in another Auditing Standard made by the AUASB up to and including 30 May 2017 (see Compilation Details).

Auditing Standard ASA 450

Evaluation of Misstatements Identified during the Audit

Application

Aus 0.1 This Auditing Standard applies to:

(a) an audit of a financial report for a financial year, or an audit of a financial report for a half‑year, in accordance with the Corporations Act 2001; and

(b) an audit of a financial report, or a complete set of financial statements, for any other purpose.

Aus 0.2 This Auditing Standard also applies, as appropriate, to an audit of other historical financial information.

Operative Date

Aus 0.3 This Auditing Standard is operative for financial reporting periods commencing on or after 1 January 2010. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]

Introduction

Scope of this Auditing Standard

1. This Auditing Standard deals with the auditor’s responsibility to evaluate the effect of identified misstatements on the audit and of uncorrected misstatements, if any, on the financial report. ASA 700 deals with the auditor’s responsibility, in forming an opinion on the financial report, to conclude whether reasonable assurance has been obtained about whether the financial report as a whole is free from material misstatement. The auditor’s conclusion required by ASA 700 takes into account the auditor’s evaluation of uncorrected misstatements, if any, on the financial report, in accordance with this Auditing Standard.[1] ASA 320[2] deals with the auditor’s responsibility to apply the concept of materiality appropriately in planning and performing an audit of a financial report.

Effective Date

1. [Deleted by the AUASB. Refer Aus 0.3]