Amendments to ASA 220Amendments to ASA 220

Amendments to ASA 220

1. Existing paragraph A37 is amended to read as follows:

Possible actions that the engagement team may take to mitigate impediments to the exercise of professional scepticism at the engagement level may include:

• …
• Modifying the nature, timing and extent of direction, supervision or review by involving more experienced engagement team members, more in-person oversight on a more frequent basis or more in-depth reviews of certain working papers for:
  • Complex or subjective areas of the audit;
  • Areas that pose risks to achieving quality on the audit engagement;
  • Areas where there may be a higher risk of material misstatement, including a risk of material misstatement due to fraudwith a fraud risk; and
  • Identified or suspected non-compliance with laws or regulations.
• …