Auditing Standard ASA 2020-1 Amendments to Australian Auditing Standards
Amendments to ASA 530Amendments to ASA 530
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Amendments to ASA 530
- Existing paragraph A7 is amended to read as follows:
In considering the characteristics of a population, for tests of controls, the auditor makes an assessment of the expected rate of deviation based on the auditor’s understanding of the relevant controls or on the examination of a small number of items from the population. This assessment is made in order to design an audit sample and to determine sample size. For example, if the expected rate of deviation is unacceptably high, the auditor will ordinarily decide not to perform tests of controls. Similarly, for tests of details, the auditor makes an assessment of the expected misstatement in the population. If the expected misstatement is high, 100% examination or use of a large sample size may be appropriate when performing tests of details.
- Existing Factor 1 of Appendix 2 is amended to read as follows:
An increase in the extent to which the auditor’s risk assessment takes into account relevant plans to test the operating effectiveness of controls