Amendments to ASA 260Amendments to ASA 260

Amendments to ASA 260

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

This Auditing Standard deals with the auditor’s responsibility to communicate with those charged with governance in an audit of a financial report. Although this Auditing Standard applies irrespective of an entity’s governance structure or size, particular considerations apply where all of those charged with governance are involved in managing an entity, and for listedpublicly traded entities. This Auditing Standard does not establish requirements regarding the auditor’s communication with an entity’s management or owners unless they are also charged with a governance role.

1. Existing paragraph 18 is amended to read as follows:

In the case of listed entities, tThe auditor shall communicate with those charged with governance a:

(a) A statement that the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms have complied with relevant ethical requirements regarding independence.; and

19. For audits of financial reports of publicly traded entities, the statement required by paragraph 18 shall include:

(ai) All relationships and other matters between the firm, network firms, and the entity that, in the auditor’s professional judgement, may reasonably be thought to bear on independence. This shall include total fees charged during the period covered by the financial report for audit and non-audit services provided by the firm and network firms to the entity and components controlled by the entity. These fees shall be allocated to categories that are appropriate to assist those charged with governance in assessing the effect of services on the independence of the auditor; and (Ref: Para. A30)

(bii) In respect of threats to independence that are not at an acceptable level, the actions taken to address the threats, including actions that were taken to eliminate the circumstances that create the threats, or applying safeguards to reduce the threats to an acceptable level. (Ref: Para. A30A31–A32)

1. Existing paragraph 21 is amended to read as follows:

The auditor shall communicate in writing with those charged with governance regarding auditor independence whenas required by paragraphs 17–19 of this Auditing Standard.

1. The heading above existing paragraph A29 is amended to read as follows:

Auditor Independence (Ref: Para. 17–189)

1. The following paragraph A30 is inserted following existing paragraph A29:

Relevant ethical requirements or law or regulation may also specify particular communications to those charged with governance for matters that may reasonably be thought to bear on independence. For example, the APESB Code requires the auditor to communicate with those charged with governance information regarding fees, including fees for sustainability assurance engagements, and the provision of non-assurance services for audit clients that are public interest entities.