Existing paragraph 30 is amended to read as follows:
For audits of financial reports of listedpublicly traded entities, the auditor shall communicate key audit matters in the auditor’s report in accordance with ASA 701.
Existing paragraph 31 is amended to read as follows:
When the auditor is otherwise required by law or regulation or decides to communicate key audit matters in the auditor’s report, the auditor shall do so in accordance with ASA 701. (Ref: Para. A40–A443)
Existing paragraph 40 is amended to read as follows:
The Auditor’s Responsibilities for the Audit of the Financial Report section of the auditor’s report also shall: (Ref: Para. A50)
(a) …
(b) For audits of the financial report of listed entities, sState that the auditor provides those charged with governance with a statement that the auditor has:
(i) Ccomplied with relevant ethical requirements regarding independence; and
(ii) For audits of financial reports of publicly traded entities, communicated with them all relationships and other matters that may reasonably be thought to bear on the auditor’s independence, and where applicable, actions taken to eliminate threats or safeguards applied; and
(c) For audits of the financial report of listedpublicly traded entities and any other entities for which key audit matters are communicated in accordance with ASA 701, state that, from the matters communicated with those charged with governance, the auditor determines those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. The auditor describes these matters in the auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, the auditor determines that a matter should not be communicated in the auditor’s report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. (Ref: Para. A53)
Existing paragraph A41 is amended to read as follows:
This ASA requires communication of key audit matters for audits of financial reports of publicly traded entities. Law or regulation may also require communication of key audit matters for audits of entities other than publicly tradedlisted entities, for example, entities characterised in such law or regulation as public interest entities.
Existing paragraph A42 is amended to read as follows:
The auditor may also decide to communicate key audit matters for other entities other than publicly traded entities, including those where the auditor determines that there is significant public interest in the financial condition of those entities., including those that may be of significant public interest, for example because they have a large number and wide range of stakeholders and considering the nature and size of the business. Examples of such entities may include financial institutions (such as banks, insurance companies, and superannuation funds), and other entities such as not-for-profit organisationscharities.
Existing paragraph A44 is amended to read as follows:
ListedPublicly traded entities are not common in the public sector. However, public sector entities may be significant due to size, complexity or public interest aspects. In such cases, an auditor of a public sector entity may be required by law or regulation or may otherwise decide to communicate key audit matters in the auditor’s report.
Existing paragraph A63 is amended to read as follows:
Law or regulation may require that the auditor’s report include the name of the engagement partner responsible for audits other than those of a general purpose financial reports of listedpublicly traded entities. The auditor may also be required by law or regulation, or may decide to include additional information beyond the engagement partner’s name in the auditor’s report to further identify the engagement partner, for example, the engagement partner’s professional license number that is relevant to the jurisdiction where the auditor practices.
Existing Appendix 1 is amended to read as follows:
Illustrations of Independent Auditor’s Reports on Financial Reports
Illustration 1: [Deleted by the AUASB.] Refer [Aus] Illustration 1A.
[Aus] Illustration 1A: An auditor’s report on a financial report of a single listedpublicly traded company prepared in accordance with the Corporations Act 2001 (a fair presentation framework).
Illustration 2: [Deleted by the AUASB.] Refer [Aus] Illustration 2A.
[Aus] Illustration 2A: An auditor’s report on a financial report of a listedpublicly traded company and its subsidiaries (Group) prepared in accordance with the Corporations Act 2001 (a fair presentation framework).
Illustration 3: An auditor’s report on a financial report of an entity other than a listedpublicly traded entity prepared in accordance with a fair presentation framework.
Illustration 4: An auditor’s report on a financial report of an entity other than a listedpublicly traded entity prepared in accordance with a general purpose compliance framework.
Amendments to ASA 700 Appendix 1: [Aus] Illustration 1A, [Aus] Illustration 2A, Illustration 3 and Illustration 4
[Aus] Illustration 1A is amended to read as follows:
[Aus] Illustration 1A:
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
Audit of the financial report of a single listedpublicly traded company. The audit is not a group audit (i.e. ASA 600 does not apply).
…
[Aus] Illustration 2A is amended to read as follows:
[Aus] Illustration 2A:
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
Audit of the financial report of a listedpublicly traded company and its subsidiaries (the Group). The audit is a group audit (i.e. ASA 600 applies).
…
Illustration 3 and its heading are amended to read as follows:
Example Auditor’s Report
Single Entity (not listedpublicly traded)
(Fair Presentation Framework)
Illustration 3
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
Audit of a financial report of an entity other than a listedpublicly traded entity. The audit is not a group audit (i.e., ASA 600 does not apply).
…
Illustration 4 and its heading are amended to read as follows:
Example Auditor’s Report
Single Entity (not listedpublicly traded)
(Compliance Framework)
Illustration 4:
For purposes of this illustrative auditor’s report, the following circumstances are assumed:
Audit of a financial report of an entity other than a listedpublicly traded entity required by law or regulation. The audit is not a group audit (i.e., ASA 600 does not apply).
…
INDEPENDENT AUDITOR’S REPORT
…
Auditor’s Responsibilities for the Audit of the Financial Report
…
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
…
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence.