Amendments to ASA 560Amendments to ASA 560

Amendments to ASA 560

1. The existing text of paragraph 14 is deleted and amended to read as follows:

[Deleted by the AUASB. Refer Aus 14.1.]

1. The following new paragraph Aus 14.1 is inserted following existing paragraph 14 of this Auditing Standard:

After the financial report has been issued, the auditor has no obligation to perform any audit procedures regarding such financial report. However, if, after the financial report has been issued, a fact becomes known to the auditor that, had it been known to the auditor at the date of the auditor’s report, may have caused the auditor to amend the auditor’s report, the auditor shall, within a reasonable period of time:

1. Discuss the matter with management and, where appropriate, those charged with governance;

2. Determine whether the financial report needs amendment and; if so,

3. Enquire how management intends to address the matter in the financial report.

4. Existing paragraph 17 is amended to read as follows:

If management, or those charged with governance, do not take the necessary steps to ensure that anyone in receipt of the previously issued financial report is informed of the situation and does not amend the financial report in circumstances where the auditor believes they need to be amended, the auditor shall notify management and, unless all of those charged with governance are involved in managing the entity,7 those charged with governance, that the auditor will seek to prevent future reliance on the auditor’s report. If, despite such notification, management or those charged with governance do not take these necessary steps, the auditor shall take appropriate action to seek to prevent reliance on the auditor’s report. (Ref: Para. A20-Aus A20.1)

1. The following new paragraph Aus A20.1 is inserted following existing paragraph A20 of this Auditing Standard:

In addition to considering if it is appropriate to obtain legal advice in accordance with paragraph A20, other possible actions the auditor may consider include:

1. Notifying management and those charged with governance that the auditor’s report must no longer be associated with the financial report.

2. If applicable, notifying the appropriate authority having jurisdiction over the entity that the auditor’s report should no longer be relied upon, and requesting the authority to take steps to provide appropriate disclosure.

3. Notifying users of the financial report that the auditor’s report should no longer be relied upon. Such notifications could be through direct communication or by broader means such as through a public notice.

4. As a result of the amendments above, the “Conformity with International Standards on Auditing” section of this Auditing Standard will be updated to reflect the new paragraphs inserted.