Auditing Standard ASA 2018-1 Amendments to Australian Auditing Standards
Amendments to ASA 701Amendments to ASA 701
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Amendments to ASA 701
- Existing paragraph 9 is amended to read as follows:
The auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit. In making this determination, the auditor shall take into account the following: (Ref: Para. A9- A18)
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Significant auditor judgements relating to areas in the financial report that involved significant management judgement, including accounting estimates that have been identified as having are subject to a high degree of estimation uncertainty. (Ref: Para. A23‑A24)
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The existing sub‑heading following paragraph A22 is amended to read as follows:
Significant Auditor Judgements Relating to Areas in the Financial Report that Involved Significant Management Judgement, Including Accounting Estimates that Have Been Identified as Having Are Subject to a High Degree of Estimation Uncertainty (Ref: Para. 9(b))
- Existing paragraph A24 is amended to read as follows:
However, users of the financial report have highlighted their interest in accounting estimates that have been identified as having are subject to a high degree of estimation uncertainty in accordance with (see ASA 54028) that may have not been determined to be significant risks. Among other things, such estimates are highly dependent on management judgement and are often the most complex areas of the financial report, and may require the involvement of both a management’s expert and an auditor’s expert. Users have also highlighted that accounting policies that have a significant effect on the financial report (and significant changes to those policies) are relevant to their understanding of the financial report, especially in circumstances where an entity’s practices are not consistent with others in its industry.
- Existing footnote 28 to paragraph A24 is amended to read as follows:
See ASA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, paragraphs 16‑1710‑11.