Amendments to ASA 700

9. The existing third paragraph of “Conformity with International Standards on Auditing” is amended to read as follows:

The following requirements are additional to ISA 700:

• Paragraph Aus 28.1(c) requires the auditor to identify the relevant ethical requirements applicable within Australia when providing the basis for opinion.
• Aus 42.1 requires that when the auditor elects to early adopt an Auditing Standard made under 336 of the Corporations Act 2001, in accordance with section 336(4) of that Act, that election is required to be recorded in the auditor’s report.
• …

10. The existing fourth paragraph of “Conformity with International Standards on Auditing” is amended to read as follows:

The following application and other explanatory material is additional to ISA 700:

• Paragraph Aus A57.1 identifies the Auditing and Assurance Standards Board and its website address when an auditor refers to a description of the auditor’s responsibilities on a website.
• Paragraph Aus A57.2 includes guidance on how the election to early adopt an Auditing Standard made under section 336 of the Corporations Act 2001 could be reported in the auditor’s report and includes a reference to ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report for further requirements and guidance relevant to Other Matter paragraphs.
• …

11. Following existing paragraph 42, and before the sub-heading “Other Reporting Responsibilities”, the following sub-heading is inserted:

Early adoption of Auditing Standards

12. Following the sub-heading inserted above, the following paragraph Aus 42.1 is inserted:

When the auditor elects to early adopt an Auditing Standard made under section 336 of the Corporations Act 2001, in accordance with section 336(4) of that Act, that election is required to be recorded in the auditor’s report.

13. Following existing paragraph Aus A57.1, and before the sub-heading “Other Reporting Responsibilities (Ref: Para. 43-45)” the following sub-heading is inserted:

Early adoption of Auditing Standards

14. Following the sub-heading inserted above, the following paragraph Aus A57.2 is inserted:

Unless otherwise stated in an Auditing Standard, the auditor is permitted to apply the standard before the operative date specified therein. Where an Auditing Standard is early adopted, all relevant conforming and consequential amendments must also be early adopted.# Where the auditor elects to early adopt an Auditing Standard, the election may be recorded in the auditor’s report as an Other Matter paragraph. Refer to ASA 706 for requirements and guidance relevant to Other Matter paragraphs.

15. A new footnote, referenced to paragraph Aus A57.2 of this Auditing Standard, is inserted to read as follows:

See ASA 200, paragraph A56 and ASA 101 Preamble to AUASB Standards, paragraphs A33-A35.