Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards
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Jurisdiction
Commonwealth
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legislative instrument
Plain English Summary
3/10 complexity
This instrument makes editorial corrections—fixing typos, numbering, footnotes and cross‑references—across 13 Australian Auditing Standards. The AUASB describes the changes as minor, non‑substantive clarifications to improve readability. Auditors and firms carrying out audits or reviews must apply the corrected wording for reporting periods commencing on or after 15 December 2021 (Operative Date). The AUASB (Authority Statement) issued the standard; it does not create new substantive obligations but requires practitioners to follow the updated text.
This instrument, Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards, makes a package of editorial corrections and targeted textual amendments to a list of existing Australian Auditing Standards (ASAs) and one Australian Standard on Review Engagements (ASRE). The AUASB states the amendments are editorial in nature, intended to revise minor inaccuracies including misspellings, numbering and grammatical mistakes (see "Introduction", "Scope of this Auditing Standard", paras under "Application" and "Objective"). The instrument is made by the Auditing and Assurance Standards Board (AUASB) pursuant to s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001, and is a legislative instrument under the Legislation Act 2003 ("Authority Statement").
Mechanically the instrument:
Identifies the ASAs and ASRE affected (ASA 101, ASA 200, ASA 240, ASA 330, ASA 502, ASA 540, ASA 550, ASA 560, ASA 570, ASA 610, ASA 620, ASA 710 and ASRE 2415) and lists the precise paragraphs, footnotes or wording to be amended (see "Objective" and the various "Amendments to ASA ..." sections).
Re-numbers particular paragraphs and updates cross-references where paragraph insertions or deletions in prior amending standards have altered numbering (see "Amendments to Auditing Standards", para 1-2; and specific notes under ASA 330, ASA 502).
Replaces or amends specific paragraph text and footnotes in the named standards, for example: amendments to footnote text in ASA 101 para A3 and A16; the rewording of ASA 200 paras A3, A64, A69, A73; an amendment to ASA 240 para 17 so that references point to a new range of paragraphs; updates to ASA 540 para 4 clarifying the separate assessment of inherent risk at the assertion level; deletion of paragraph 11 and footnote 4 in ASRE 2415; and other targeted edits (see the individual "Amendments to ASA ..." sections in the instrument).
Current sections
Direct links to the current provisions in Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards.
32
Obtaining a Copy of this Auditing Standa
Obtaining a Copy of this Auditing Standard
Obtaining a Copy of this Auditing Standard
This Auditing Standard is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au
Contact Details
Contact Details
Contact Details
Auditing and Assurance Standards BoardPodium Level 14, 530 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204, Collins Street WestMelbourne Victoria 8007AUSTRALIA
Requests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833-4393
CONTENTS
CONTENTS
CONTENTS
PREFACE
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Requests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833-4393
CONTENTS
PREFACE
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Amendments to Auditing Standards............................................7-8
Amendments to ASA 101.....................................................9-11
Amendments to ASA 200....................................................12-17
Amendments to ASA 240......................................................18
Amendments to ASA 330......................................................19
Amendments to ASA 502....................................................20-21
Amendments to ASA 540......................................................22
Amendments to ASA 550......................................................23
Amendments to ASA 560......................................................24
Amendments to ASA 570......................................................25
Amendments to ASA 610....................................................26-30
Amendments to ASA 620......................................................31
Amendments to ASA 710......................................................32
Amendments to ASRE 2415....................................................33
preface
Reasons for Issuing ASA 2021-5
The AUASB issues Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.
The AUASB is a non corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.
Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.
Main Features
This Auditing Standard makes amendments to the requirements and application & other explanatory material of the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Dated: 5 November 2021 W R Edge
Chair - AUASB
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Reasons for Issuing ASA 2021-5
Reasons for Issuing ASA 2021-5
Reasons for Issuing ASA 2021-5
The AUASB issues Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.
The AUASB is a non corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.
Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.
Main Features
Main Features
Main Features
This Auditing Standard makes amendments to the requirements and application & other explanatory material of the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Dated: 5 November 2021 W R Edge
Chair - AUASB
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
AUTHORITY STATEMENT
AUTHORITY STATEMENT
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Conformity with International Standards
Conformity with International Standards on Auditing
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Auditing Standard ASA 2021-5
Auditing Standard ASA 2021-5
Auditing Standard ASA 2021-5
Amendments to Australian Auditing Standards
Application
This Auditing Standard applies to:
an audit or a review of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001; and
an audit or a review of a financial report, or a complete set of financial statements, for any other purpose.
This Auditing Standard also applies, as appropriate, to an audit or a review of other historical financial information.
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021.
Introduction
Scope of this Auditing Standard
This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
Objective
The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
Definition
For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.
Amendments to Auditing Standards
Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.
Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.
Amendments to ASA 101
Existing footnote 12 in paragraph A3 is amended to read as follows:
For legislative purposes, ASRE 2410 and ASRE 2415 are included in legislation as “Auditing Standards”:.
Existing footnote 25 in paragraph A16 is amended to read as follows:
The term “professional judgement” is defined in the AUASB Glossary in the context of different types of AUASB Standards. For assurance engagements, see Framework for Assurance Engagements, paragraphs 56-60. For related services engagements, see ASREASRS 4400, paragraphs 13(j) and 18.
Existing paragraph A31 is amended to read as follows:
The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act applies specifically to:
(d)(a) an audit or a review conducted under Part 2M.3 of the Act; and
(e)(b) an audit conducted under Part 7.8 of the Act.
Amendments to ASA 200
Existing paragraph A3 is amended to read as follows:
For the purposes of the Australian Auditing Standards ASAs, a risk of material misstatement exists when there is a reasonable possibility of:
…
Existing footnote 19 in paragraph A44 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement.
Existing footnote 21 in paragraph A46 is amended to read as follows:
See ASA 330, paragraph 6.
Existing paragraph A64 is amended to read as follows:
Where necessary, the application and other explanatory material provides further explanation of the requirements of an Auditing Standard and guidance for carrying them out. In particular, it may:
Explain more precisely what a requirement means or is intended to cover, including in some Auditing Standards ASAs such as ASA 315, why a procedure is required.
Include examples of procedures that may be appropriate in the circumstances. In some Auditing Standards ASAs, such as ASA 315, examples are presented in boxes.
…
Existing paragraph A69 is amended to read as follows:
Scalability considerations have been included in some Auditing Standards ASAs (e.g., ASA 315), illustrating the application of the requirements to all entities regardless of whether their nature and circumstances are less complex or more complex. Less complex entities are entities for which the characteristics in paragraph A71 A66 may apply.
Existing paragraph A73 is amended to read as follows:
The considerations specific to “automated tools and techniques” included in some Auditing Standards ASAs (for example, ASA 315) have been developed to explain how the auditor may apply certain requirements when using automated tools and techniques in performing audit procedures.
Amendments to ASA 240
Existing paragraph 17 is amended to read as follows:
When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and the entity’s system of internal control, required by ASA 315, the auditor shall perform the procedures in paragraphs 18-25 23-43 of this Auditing Standard to obtain information for use in identifying the risks of material misstatement due to fraud.
Amendments to ASA 330
As a result of the paragraph insertions by ASA 2020-1 Amendments to Australian Auditing Standards, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Amendments to ASA 502
The existing paragraph following existing sub-heading “Effective Date” is re-numbered and as a result, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Existing paragraph 5 is amended to read as follows:
If:
management refuses to give the auditor permission to communicate or meet with the entity’s external legal counsel, or the entity’s external legal counsel refuses to respond appropriately to the letter of enquiry, or is prohibited from responding; and (Ref: Para. Aus A8.7-Aus A8.8)
…
Amendments to ASA 540
Existing paragraph 4 is amended to read as follows:
This Auditing Standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level.5 In the context of ASA 540 (Revised), and depending on the nature of a particular accounting estimate, the susceptibility of an assertion to a misstatement that could be material may be subject to or affected by estimation uncertainty, complexity, subjectivity or other inherent risk factors, and the interrelationship among them. As explained in ASA 200,6 inherent risk is higher for some assertions and related classes of transactions, account balances and disclosures than for others. Accordingly, the assessment of inherent risk depends on the degree to which the inherent risk factors affect the likelihood or magnitude of misstatement, and varies on a scale that is referred to in this Auditing Standard as the spectrum of inherent risk. (Ref: Para. A8–A9, A65–A66, Appendix 1)
Amendments to ASA 550
Existing footnote 11 in paragraph 23 is amended to read as follows:
See ASA 240, paragraph 3332(c).
Amendments to ASA 560
As a result of the deletion of paragraph Aus A3.1 by paragraph 160 of ASA 2015-1 Amendments to Australian Auditing Standards, references to this paragraph are updated accordingly.
Amendments to ASA 570
Amendments to ASA 570 Appendix 2: [Aus] Illustration 4A
[Aus] Illustration 4A: Example Auditor’s Report for Disclaimer of Opinion (Limitation of Scope) Single listed Company-Corporations Act 2001 (Fair Presentation Framework), is amended as follows:
INDEPENDENT AUDITOR’S REPORT
…
Auditor’s Responsibilities for the Audit of the Financial Report
[Reporting in accordance with ASA 700705 – see [Aus] Illustration 1A5 in ASA 700705.]
Amendments to ASA 610
Existing footnote 1 in paragraph 3 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (as amended).
Existing footnote 3 in paragraph 7 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 13 in paragraph A4 is amended to read as follows:
See ASA 315 (as amended), paragraph 14(a).
Existing footnote 25 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 26 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A11 in relation to ASA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report.
Amendments to ASA 620
Existing paragraph A4 is amended to read as follows:
An auditor’s expert may be needed to assist the auditor in one or more of the following:
Obtaining an understanding of the entity and its environment, the applicable financial reporting framework and the, entity’s system of internal control.
Amendments to ASA 710
Existing footnote 5 in paragraph 16 is amended to read as follows:
See ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report, paragraphs 8 and Aus A8.1 Aus 8.1.
Amendments to ASRE 2415
Existing paragraph 11 and footnote 4 are deleted.
Commencement of the legislative instrument
For legal purposes, each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
Amendments to Australian Auditing Standa
Amendments to Australian Auditing Standards
Auditing Standard ASA 2021-5
Amendments to Australian Auditing Standards
Application
This Auditing Standard applies to:
an audit or a review of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001; and
an audit or a review of a financial report, or a complete set of financial statements, for any other purpose.
This Auditing Standard also applies, as appropriate, to an audit or a review of other historical financial information.
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021.
Introduction
Scope of this Auditing Standard
This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
Objective
The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
Definition
For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.
Amendments to Auditing Standards
Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.
Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.
Amendments to ASA 101
Existing footnote 12 in paragraph A3 is amended to read as follows:
For legislative purposes, ASRE 2410 and ASRE 2415 are included in legislation as “Auditing Standards”:.
Existing footnote 25 in paragraph A16 is amended to read as follows:
The term “professional judgement” is defined in the AUASB Glossary in the context of different types of AUASB Standards. For assurance engagements, see Framework for Assurance Engagements, paragraphs 56-60. For related services engagements, see ASREASRS 4400, paragraphs 13(j) and 18.
Existing paragraph A31 is amended to read as follows:
The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act applies specifically to:
(d)(a) an audit or a review conducted under Part 2M.3 of the Act; and
(e)(b) an audit conducted under Part 7.8 of the Act.
Amendments to ASA 200
Existing paragraph A3 is amended to read as follows:
For the purposes of the Australian Auditing Standards ASAs, a risk of material misstatement exists when there is a reasonable possibility of:
…
Existing footnote 19 in paragraph A44 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement.
Existing footnote 21 in paragraph A46 is amended to read as follows:
See ASA 330, paragraph 6.
Existing paragraph A64 is amended to read as follows:
Where necessary, the application and other explanatory material provides further explanation of the requirements of an Auditing Standard and guidance for carrying them out. In particular, it may:
Explain more precisely what a requirement means or is intended to cover, including in some Auditing Standards ASAs such as ASA 315, why a procedure is required.
Include examples of procedures that may be appropriate in the circumstances. In some Auditing Standards ASAs, such as ASA 315, examples are presented in boxes.
…
Existing paragraph A69 is amended to read as follows:
Scalability considerations have been included in some Auditing Standards ASAs (e.g., ASA 315), illustrating the application of the requirements to all entities regardless of whether their nature and circumstances are less complex or more complex. Less complex entities are entities for which the characteristics in paragraph A71 A66 may apply.
Existing paragraph A73 is amended to read as follows:
The considerations specific to “automated tools and techniques” included in some Auditing Standards ASAs (for example, ASA 315) have been developed to explain how the auditor may apply certain requirements when using automated tools and techniques in performing audit procedures.
Amendments to ASA 240
Existing paragraph 17 is amended to read as follows:
When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and the entity’s system of internal control, required by ASA 315, the auditor shall perform the procedures in paragraphs 18-25 23-43 of this Auditing Standard to obtain information for use in identifying the risks of material misstatement due to fraud.
Amendments to ASA 330
As a result of the paragraph insertions by ASA 2020-1 Amendments to Australian Auditing Standards, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Amendments to ASA 502
The existing paragraph following existing sub-heading “Effective Date” is re-numbered and as a result, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Existing paragraph 5 is amended to read as follows:
If:
management refuses to give the auditor permission to communicate or meet with the entity’s external legal counsel, or the entity’s external legal counsel refuses to respond appropriately to the letter of enquiry, or is prohibited from responding; and (Ref: Para. Aus A8.7-Aus A8.8)
…
Amendments to ASA 540
Existing paragraph 4 is amended to read as follows:
This Auditing Standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level.5 In the context of ASA 540 (Revised), and depending on the nature of a particular accounting estimate, the susceptibility of an assertion to a misstatement that could be material may be subject to or affected by estimation uncertainty, complexity, subjectivity or other inherent risk factors, and the interrelationship among them. As explained in ASA 200,6 inherent risk is higher for some assertions and related classes of transactions, account balances and disclosures than for others. Accordingly, the assessment of inherent risk depends on the degree to which the inherent risk factors affect the likelihood or magnitude of misstatement, and varies on a scale that is referred to in this Auditing Standard as the spectrum of inherent risk. (Ref: Para. A8–A9, A65–A66, Appendix 1)
Amendments to ASA 550
Existing footnote 11 in paragraph 23 is amended to read as follows:
See ASA 240, paragraph 3332(c).
Amendments to ASA 560
As a result of the deletion of paragraph Aus A3.1 by paragraph 160 of ASA 2015-1 Amendments to Australian Auditing Standards, references to this paragraph are updated accordingly.
Amendments to ASA 570
Amendments to ASA 570 Appendix 2: [Aus] Illustration 4A
[Aus] Illustration 4A: Example Auditor’s Report for Disclaimer of Opinion (Limitation of Scope) Single listed Company-Corporations Act 2001 (Fair Presentation Framework), is amended as follows:
INDEPENDENT AUDITOR’S REPORT
…
Auditor’s Responsibilities for the Audit of the Financial Report
[Reporting in accordance with ASA 700705 – see [Aus] Illustration 1A5 in ASA 700705.]
Amendments to ASA 610
Existing footnote 1 in paragraph 3 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (as amended).
Existing footnote 3 in paragraph 7 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 13 in paragraph A4 is amended to read as follows:
See ASA 315 (as amended), paragraph 14(a).
Existing footnote 25 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 26 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A11 in relation to ASA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report.
Amendments to ASA 620
Existing paragraph A4 is amended to read as follows:
An auditor’s expert may be needed to assist the auditor in one or more of the following:
Obtaining an understanding of the entity and its environment, the applicable financial reporting framework and the, entity’s system of internal control.
Amendments to ASA 710
Existing footnote 5 in paragraph 16 is amended to read as follows:
See ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report, paragraphs 8 and Aus A8.1 Aus 8.1.
Amendments to ASRE 2415
Existing paragraph 11 and footnote 4 are deleted.
Commencement of the legislative instrument
For legal purposes, each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
Application
Application
Application
This Auditing Standard applies to:
an audit or a review of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001; and
an audit or a review of a financial report, or a complete set of financial statements, for any other purpose.
This Auditing Standard also applies, as appropriate, to an audit or a review of other historical financial information.
Operative Date
Operative Date
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021.
Introduction
Introduction
Auditing Standard ASA 2021-5
Amendments to Australian Auditing Standards
Application
This Auditing Standard applies to:
an audit or a review of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001; and
an audit or a review of a financial report, or a complete set of financial statements, for any other purpose.
This Auditing Standard also applies, as appropriate, to an audit or a review of other historical financial information.
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021.
Introduction
Scope of this Auditing Standard
This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
Objective
The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
Definition
For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.
Amendments to Auditing Standards
Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.
Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.
Amendments to ASA 101
Existing footnote 12 in paragraph A3 is amended to read as follows:
For legislative purposes, ASRE 2410 and ASRE 2415 are included in legislation as “Auditing Standards”:.
Existing footnote 25 in paragraph A16 is amended to read as follows:
The term “professional judgement” is defined in the AUASB Glossary in the context of different types of AUASB Standards. For assurance engagements, see Framework for Assurance Engagements, paragraphs 56-60. For related services engagements, see ASREASRS 4400, paragraphs 13(j) and 18.
Existing paragraph A31 is amended to read as follows:
The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act applies specifically to:
(d)(a) an audit or a review conducted under Part 2M.3 of the Act; and
(e)(b) an audit conducted under Part 7.8 of the Act.
Amendments to ASA 200
Existing paragraph A3 is amended to read as follows:
For the purposes of the Australian Auditing Standards ASAs, a risk of material misstatement exists when there is a reasonable possibility of:
…
Existing footnote 19 in paragraph A44 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement.
Existing footnote 21 in paragraph A46 is amended to read as follows:
See ASA 330, paragraph 6.
Existing paragraph A64 is amended to read as follows:
Where necessary, the application and other explanatory material provides further explanation of the requirements of an Auditing Standard and guidance for carrying them out. In particular, it may:
Explain more precisely what a requirement means or is intended to cover, including in some Auditing Standards ASAs such as ASA 315, why a procedure is required.
Include examples of procedures that may be appropriate in the circumstances. In some Auditing Standards ASAs, such as ASA 315, examples are presented in boxes.
…
Existing paragraph A69 is amended to read as follows:
Scalability considerations have been included in some Auditing Standards ASAs (e.g., ASA 315), illustrating the application of the requirements to all entities regardless of whether their nature and circumstances are less complex or more complex. Less complex entities are entities for which the characteristics in paragraph A71 A66 may apply.
Existing paragraph A73 is amended to read as follows:
The considerations specific to “automated tools and techniques” included in some Auditing Standards ASAs (for example, ASA 315) have been developed to explain how the auditor may apply certain requirements when using automated tools and techniques in performing audit procedures.
Amendments to ASA 240
Existing paragraph 17 is amended to read as follows:
When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and the entity’s system of internal control, required by ASA 315, the auditor shall perform the procedures in paragraphs 18-25 23-43 of this Auditing Standard to obtain information for use in identifying the risks of material misstatement due to fraud.
Amendments to ASA 330
As a result of the paragraph insertions by ASA 2020-1 Amendments to Australian Auditing Standards, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Amendments to ASA 502
The existing paragraph following existing sub-heading “Effective Date” is re-numbered and as a result, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Existing paragraph 5 is amended to read as follows:
If:
management refuses to give the auditor permission to communicate or meet with the entity’s external legal counsel, or the entity’s external legal counsel refuses to respond appropriately to the letter of enquiry, or is prohibited from responding; and (Ref: Para. Aus A8.7-Aus A8.8)
…
Amendments to ASA 540
Existing paragraph 4 is amended to read as follows:
This Auditing Standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level.5 In the context of ASA 540 (Revised), and depending on the nature of a particular accounting estimate, the susceptibility of an assertion to a misstatement that could be material may be subject to or affected by estimation uncertainty, complexity, subjectivity or other inherent risk factors, and the interrelationship among them. As explained in ASA 200,6 inherent risk is higher for some assertions and related classes of transactions, account balances and disclosures than for others. Accordingly, the assessment of inherent risk depends on the degree to which the inherent risk factors affect the likelihood or magnitude of misstatement, and varies on a scale that is referred to in this Auditing Standard as the spectrum of inherent risk. (Ref: Para. A8–A9, A65–A66, Appendix 1)
Amendments to ASA 550
Existing footnote 11 in paragraph 23 is amended to read as follows:
See ASA 240, paragraph 3332(c).
Amendments to ASA 560
As a result of the deletion of paragraph Aus A3.1 by paragraph 160 of ASA 2015-1 Amendments to Australian Auditing Standards, references to this paragraph are updated accordingly.
Amendments to ASA 570
Amendments to ASA 570 Appendix 2: [Aus] Illustration 4A
[Aus] Illustration 4A: Example Auditor’s Report for Disclaimer of Opinion (Limitation of Scope) Single listed Company-Corporations Act 2001 (Fair Presentation Framework), is amended as follows:
INDEPENDENT AUDITOR’S REPORT
…
Auditor’s Responsibilities for the Audit of the Financial Report
[Reporting in accordance with ASA 700705 – see [Aus] Illustration 1A5 in ASA 700705.]
Amendments to ASA 610
Existing footnote 1 in paragraph 3 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (as amended).
Existing footnote 3 in paragraph 7 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 13 in paragraph A4 is amended to read as follows:
See ASA 315 (as amended), paragraph 14(a).
Existing footnote 25 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 26 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A11 in relation to ASA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report.
Amendments to ASA 620
Existing paragraph A4 is amended to read as follows:
An auditor’s expert may be needed to assist the auditor in one or more of the following:
Obtaining an understanding of the entity and its environment, the applicable financial reporting framework and the, entity’s system of internal control.
Amendments to ASA 710
Existing footnote 5 in paragraph 16 is amended to read as follows:
See ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report, paragraphs 8 and Aus A8.1 Aus 8.1.
Amendments to ASRE 2415
Existing paragraph 11 and footnote 4 are deleted.
Commencement of the legislative instrument
For legal purposes, each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
Scope of this Auditing Standard
Scope of this Auditing Standard
Scope of this Auditing Standard
This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
Objective
Objective
Objective
The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
Definition
Definition
Definition
For the purposes of this Auditing Standard, the meanings of terms are set out in each Auditing Standard and in the AUASB Glossary. This Auditing Standard does not introduce new definitions.
Amendments to Auditing Standards
Amendments to Auditing Standards
Amendments to Auditing Standards
Where relevant, this Standard uses underlining, striking out and other typographical material to identify the amendments to a Standard, in order to make the amendments more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.
Where this amending standard inserts or deletes a paragraph or footnote, as a result of that insertion or deletion relevant paragraph numbers, cross-references and footnotes are updated.
Amendments to ASA 101
Amendments to ASA 101
Amendments to ASA 101
Existing footnote 12 in paragraph A3 is amended to read as follows:
For legislative purposes, ASRE 2410 and ASRE 2415 are included in legislation as “Auditing Standards”:.
Existing footnote 25 in paragraph A16 is amended to read as follows:
The term “professional judgement” is defined in the AUASB Glossary in the context of different types of AUASB Standards. For assurance engagements, see Framework for Assurance Engagements, paragraphs 56-60. For related services engagements, see ASREASRS 4400, paragraphs 13(j) and 18.
Existing paragraph A31 is amended to read as follows:
The “Application” paragraph in each Auditing Standard that refers to audits or reviews conducted in accordance with the Corporations Act applies specifically to:
(d)(a) an audit or a review conducted under Part 2M.3 of the Act; and
(e)(b) an audit conducted under Part 7.8 of the Act.
Amendments to ASA 200
Amendments to ASA 200
Amendments to ASA 200
Existing paragraph A3 is amended to read as follows:
For the purposes of the Australian Auditing Standards ASAs, a risk of material misstatement exists when there is a reasonable possibility of:
…
Existing footnote 19 in paragraph A44 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement.
Existing footnote 21 in paragraph A46 is amended to read as follows:
See ASA 330, paragraph 6.
Existing paragraph A64 is amended to read as follows:
Where necessary, the application and other explanatory material provides further explanation of the requirements of an Auditing Standard and guidance for carrying them out. In particular, it may:
Explain more precisely what a requirement means or is intended to cover, including in some Auditing Standards ASAs such as ASA 315, why a procedure is required.
Include examples of procedures that may be appropriate in the circumstances. In some Auditing Standards ASAs, such as ASA 315, examples are presented in boxes.
…
Existing paragraph A69 is amended to read as follows:
Scalability considerations have been included in some Auditing Standards ASAs (e.g., ASA 315), illustrating the application of the requirements to all entities regardless of whether their nature and circumstances are less complex or more complex. Less complex entities are entities for which the characteristics in paragraph A71 A66 may apply.
Existing paragraph A73 is amended to read as follows:
The considerations specific to “automated tools and techniques” included in some Auditing Standards ASAs (for example, ASA 315) have been developed to explain how the auditor may apply certain requirements when using automated tools and techniques in performing audit procedures.
Amendments to ASA 240
Amendments to ASA 240
Amendments to ASA 240
Existing paragraph 17 is amended to read as follows:
When performing risk assessment procedures and related activities to obtain an understanding of the entity and its environment, the applicable financial reporting framework and the entity’s system of internal control, required by ASA 315, the auditor shall perform the procedures in paragraphs 18-25 23-43 of this Auditing Standard to obtain information for use in identifying the risks of material misstatement due to fraud.
Amendments to ASA 330
Amendments to ASA 330
Amendments to ASA 330
As a result of the paragraph insertions by ASA 2020-1 Amendments to Australian Auditing Standards, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Amendments to ASA 502
Amendments to ASA 502
Amendments to ASA 502
The existing paragraph following existing sub-heading “Effective Date” is re-numbered and as a result, subsequent paragraphs of this Auditing Standard are re-numbered and references to these paragraphs are updated accordingly.
Existing paragraph 5 is amended to read as follows:
If:
management refuses to give the auditor permission to communicate or meet with the entity’s external legal counsel, or the entity’s external legal counsel refuses to respond appropriately to the letter of enquiry, or is prohibited from responding; and (Ref: Para. Aus A8.7-Aus A8.8)
…
Amendments to ASA 540
Amendments to ASA 540
Amendments to ASA 540
Existing paragraph 4 is amended to read as follows:
This Auditing Standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level.5 In the context of ASA 540 (Revised), and depending on the nature of a particular accounting estimate, the susceptibility of an assertion to a misstatement that could be material may be subject to or affected by estimation uncertainty, complexity, subjectivity or other inherent risk factors, and the interrelationship among them. As explained in ASA 200,6 inherent risk is higher for some assertions and related classes of transactions, account balances and disclosures than for others. Accordingly, the assessment of inherent risk depends on the degree to which the inherent risk factors affect the likelihood or magnitude of misstatement, and varies on a scale that is referred to in this Auditing Standard as the spectrum of inherent risk. (Ref: Para. A8–A9, A65–A66, Appendix 1)
Amendments to ASA 550
Amendments to ASA 550
Amendments to ASA 550
Existing footnote 11 in paragraph 23 is amended to read as follows:
See ASA 240, paragraph 3332(c).
Amendments to ASA 560
Amendments to ASA 560
Amendments to ASA 560
As a result of the deletion of paragraph Aus A3.1 by paragraph 160 of ASA 2015-1 Amendments to Australian Auditing Standards, references to this paragraph are updated accordingly.
Amendments to ASA 570
Amendments to ASA 570
Amendments to ASA 570
Amendments to ASA 570 Appendix 2: [Aus] Illustration 4A
[Aus] Illustration 4A: Example Auditor’s Report for Disclaimer of Opinion (Limitation of Scope) Single listed Company-Corporations Act 2001 (Fair Presentation Framework), is amended as follows:
INDEPENDENT AUDITOR’S REPORT
…
Auditor’s Responsibilities for the Audit of the Financial Report
[Reporting in accordance with ASA 700705 – see [Aus] Illustration 1A5 in ASA 700705.]
Amendments to ASA 610
Amendments to ASA 610
Amendments to ASA 610
Existing footnote 1 in paragraph 3 is amended to read as follows:
See ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (as amended).
Existing footnote 3 in paragraph 7 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 13 in paragraph A4 is amended to read as follows:
See ASA 315 (as amended), paragraph 14(a).
Existing footnote 25 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A118.
Existing footnote 26 in paragraph A26 is amended to read as follows:
See ASA 315 (as amended), paragraph A11 in relation to ASA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report.
Amendments to ASA 620
Amendments to ASA 620
Amendments to ASA 620
Existing paragraph A4 is amended to read as follows:
An auditor’s expert may be needed to assist the auditor in one or more of the following:
Obtaining an understanding of the entity and its environment, the applicable financial reporting framework and the, entity’s system of internal control.
Amendments to ASA 710
Amendments to ASA 710
Amendments to ASA 710
Existing footnote 5 in paragraph 16 is amended to read as follows:
See ASA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report, paragraphs 8 and Aus A8.1 Aus 8.1.
Amendments to ASRE 2415
Amendments to ASRE 2415
Amendments to ASRE 2415
Existing paragraph 11 and footnote 4 are deleted.
Commencement of the legislative instrume
Commencement of the legislative instrument
Commencement of the legislative instrument
For legal purposes, each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Obtaining a Copy of this Auditing Standa Obtaining a Copy of this Auditing Standard
Obtaining a Copy of this Auditing Standard
This Auditing Standard is available on the Auditing and Assurance Standards Board (AUASB) website: www.auasb.gov.au
Contact Details Contact Details
Contact Details
Auditing and Assurance Standards BoardPodium Level 14, 530 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204, Collins Street WestMelbourne Victoria 8007AUSTRALIA
Requests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833-4393
CONTENTS CONTENTS
CONTENTS
PREFACE
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Amendments to Auditing Standards............................................7-8
Amendments to ASA 101.....................................................9-11
States commencement details: the instrument is dated 5 November 2021, signed by the AUASB Chair (Authority Statement), the whole instrument is listed in the commencement table as commencing on 14 December 2021, and the instrument is operative for financial reporting periods commencing on or after 15 December 2021 ("Operative Date"; "Commencement information").
The stated purpose, as described in the Preface and "Reasons for Issuing ASA 2021-5", is to correct minor inaccuracies and improve clarity. The instrument expressly does not introduce new definitions (see "Definition"). It also explains the visual conventions used for showing amendments (underlining, striking out for ease of understanding) while confirming those typographical markers do not form part of the amended text ("Amendments to Auditing Standards", paras 1-2). The instrument also records conformity statements: it was made for Australian legislative purposes and has no equivalent International Standard on Auditing (ISA) (see "Conformity with International Standards on Auditing").
Readers should note the document contains explicit references to prior amending standards (for example ASA 2020-1 and ASA 2015-1) and to cross-references between ASAs (for example ASA 315, ASA 706, ASA 700/705) which the amendments update. The changes are narrow in scope but procedural: they adjust references, footnotes and wording that auditors and firms use when applying ASAs in practice.
Main concepts
The instrument operates on a corrective and housekeeping logic. Its main concepts and mechanisms, as presented in the text, are these.
Amendment-as-technical-fix: The AUASB frames ASA 2021-5 as an amending standard that makes editorial corrections to existing standards rather than substantive re‑direction of audit methodology (see "Scope of this Auditing Standard"; "Main Features"). The stated errors corrected include misspellings, numbering, and grammatical mistakes.
Targeted updates to cross-references and paragraph numbering: The instrument repeatedly updates footnotes and paragraph cross-references that were rendered inaccurate by prior amendments or insertions. Examples in the text include:
ASA 240 paragraph 17 amended so the auditor performs the procedures in paragraphs previously numbered 18-25 now indicated as 23-43 (see "Amendments to ASA 240").
ASA 502 paragraph 5 reworded to capture the situation where management refuses permission for the auditor to speak to external legal counsel or the external legal counsel refuses or is prohibited from responding (see "Amendments to ASA 502", para 2).
ASA 610 and ASA 620 footnotes and paragraph references adjusted to refer to ASA 315 "as amended" (see "Amendments to ASA 610", "Amendments to ASA 620").
Clarification of risk terminology and assessment approach: The instrument amends ASA 200 and ASA 540 explanatory material to clarify language around "risk of material misstatement" and "inherent risk". For ASA 200, paragraph A3 is adjusted to read "a risk of material misstatement exists when there is a reasonable possibility of" and other explanatory paragraphs are refined (see "Amendments to ASA 200"). For ASA 540 paragraph 4, the substantive clarification is reiterated: the standard requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level and describes how inherent risk varies across assertions and classes of transactions (see "Amendments to ASA 540").
Technical conventions for presenting amendments: The instrument explains that underlining, striking out and typographical markers may be used in the amending standard to make changes understandable, but that the final amended standards do not include those markup features. It clarifies that when paragraphs or footnotes are inserted or deleted, paragraph numbers and cross-references are updated (see "Amendments to Auditing Standards" paras 1-2).
Limited scope: The instrument does not create new definitions, does not change the list of applicable standards for legislative purposes (except by clarifying footnote wording), and does not introduce substantive auditing requirements beyond refined wording (see "Definition"; "Objective"). It reaffirms application coverage: the amending standard applies to audits or reviews conducted under the Corporations Act 2001 and to audits or reviews for other purposes, including other historical financial information (see "Application").
Legal provenance and timing: The AUASB makes the instrument under the legislative powers noted above and records both the date of the making (detailed by the Authority Statement dated 5 November 2021) and the commencement/operative timing (commencement table showing 14 December 2021; operative for reporting periods commencing on or after 15 December 2021).
These concepts together create a narrowly targeted instrument: it tidies cross-references, clarifies certain explanatory paragraphs about risk and evidence, updates footnote references to indicate "as amended" where prior changes affect content, and removes an obsolete paragraph and footnote in ASRE 2415. The practical implication is a re-aligned set of textual references and clarified wording for auditors applying the affected ASAs.
Who it affects
The instrument identifies specific affected parties and makes clear who decides, who must follow the changes and who bears compliance tasks.
Primary decision-maker: The AUASB is the statutory body that makes the standard. The Preface explains the AUASB is a non‑corporate Commonwealth entity established under s 227A of the Australian Securities and Investments Commission Act 2001 and that it makes Auditing Standards under s 336 of the Corporations Act 2001. The Authority Statement confirms the AUASB makes ASA 2021-5 under s 227B of the ASIC Act and s 336 of the Corporations Act ("Authority Statement"; "Reasons for Issuing ASA 2021-5").
Entities and professionals affected:
Auditors and audit firms that perform audits or reviews of financial reports under the Corporations Act 2001, including audits or reviews of financial reports for financial years and half-years (see "Application", paras 1-2). The instrument explicitly applies to such engagements.
Entities whose financial reports are audited or reviewed under the Corporations Act because auditors must apply the ASAs in those engagements; changes to references or explanatory wording affect how auditors document their work and interpret requirements.
Practitioners who conduct audits or reviews for purposes other than the Corporations Act, because the instrument also applies to "an audit or a review of a financial report, or a complete set of financial statements, for any other purpose" and, as appropriate, to other historical financial information ("Application", para 1).
Internal audit functions, audit committees and those who prepare audit manuals, because the amendments to ASA 610 (Using the Work of Internal Auditors) and other standards update footnote references and explanatory material that will feed into policies and procedures.
Regulators and users:
Regulators who supervise compliance with auditing standards under the Corporations Act will be affected insofar as the text auditors rely upon is amended and therefore audit documentation and reporting practices may adjust to align with the clarified wording.
Professional bodies and educators: the amendments update authoritative text and therefore training materials, technical guidance and firm methodology documents need to reflect the amended language.
Who pays and who implements: The immediate compliance burden falls on audit firms and practitioners who must update working papers, audit programs, templates, legal-enquiry letters and internal guidance to reflect the amended wording and cross-references; the instrument does not introduce new substantive procedures but requires updating of documentation and potential retraining to ensure references to "as amended" versions of other ASAs are used (see "Amendments to Auditing Standards", para 1-2 and the specific ASA amendment sections). Entities themselves may indirectly bear costs through auditor time to make the textual changes and to ensure cross-referenced standards are correctly applied.
Timing constraints: The instrument is operative for financial reporting periods commencing on or after 15 December 2021 and the commencement table lists the whole instrument as commencing 14 December 2021. Practitioners undertaking audits/reviews for reporting periods that commence on or after that operative date must apply the amended text, which may require auditing teams to check that their engagements commencing after the operative date reference the updated ASAs.
Limits on effect: The instrument states it does not create new definitions and the AUASB frames these as editorial corrections; therefore parties should not expect substantive methodological shifts from ASA 2021-5 alone. Nonetheless the changes to cross-references and to wording in ASA 540 (clarifying separate assessment of inherent risk at assertion level) and ASA 502 (communication with external legal counsel) may influence how auditors document assessments and enquiries in particular fact patterns.
Key duties and rights
This amending standard does not create novel duties or rights in the sense of statutory penalties or new entitlements. Instead it modifies the text of existing auditing standards, thereby affecting auditors' professional obligations when performing engagements governed by those standards. The key duties and rights, as derived from the instrument, are these.
Duty to apply amended standards where applicable: The instrument applies to audits and reviews under the Corporations Act 2001 and to audits or reviews for other purposes (see "Application"). For engagements within that scope, auditors are required to apply the ASAs as amended by this instrument. The Authority Statement and Preface identify these standards as legislative instruments under the Legislation Act 2003; thus the amended ASAs have legal character in the Australian regulatory framework for audits.
Duty to use updated cross-references and paragraph numbers: Several amendments are explicit changes to paragraph numbering and footnotes, with consequential cross-reference updates (see "Amendments to Auditing Standards", paras 1-2). For example, ASA 240 para 17 is amended so that risk assessment procedures "required by ASA 315" now rely on procedures in paragraphs 23-43 of ASA 240 rather than 18-25. Auditors must ensure their procedures and documentation cite the correct paragraph ranges and that prior internal manuals referencing old numbering are updated.
Duty to assess inherent risk at assertion level (clarified): ASA 540 para 4 is amended to restate that the standard "requires a separate assessment of inherent risk for identified risks of material misstatement at the assertion level" and to discuss the spectrum of inherent risk (see "Amendments to ASA 540"). While this reflects existing ASA 540 content, the amended wording may sharpen the duty to perform assertion-level inherent risk assessments for accounting estimates and to consider estimation uncertainty, complexity and subjectivity in that assessment.
Duty regarding external legal counsel enquiries: ASA 502 para 5 is amended to cover the situation where management refuses permission to communicate with external legal counsel, or external counsel refuses or is prohibited from responding (see "Amendments to ASA 502"). The auditor has a duty to consider these scenarios and the amended text clarifies when the auditor should recognise the limitation.
Duty to reflect "as amended" status in references: Multiple amendments add or change footnote language to indicate when a cited ASA is "as amended" (e.g., ASA 610 footnotes referring to ASA 315 "as amended"). Auditors must be attentive to which version of cross-referenced standards applies and adopt the amended versions in their procedures and documentation.
No new legal rights to third parties: The instrument does not confer any new rights to third parties or change reporting content in the independent auditor's report beyond an amendment to an illustrative auditor's report reference in ASA 570 to report in accordance with ASA 700/705 (see "Amendments to ASA 570"). The amendments are not framed as creating new enforceable rights for report users in the instrument itself.
AUASB's authority and duty: The AUASB retains the statutory role of making auditing standards under the specified Acts. The Preface describes the Strategic Direction given by the Financial Reporting Council requiring AUASB to develop auditing standards with a clear public interest focus and high quality. The Authority Statement records the AUASB's statutory power to make this instrument (see "Reasons for Issuing ASA 2021-5" and "Authority Statement").
Documentation and internal control duties: Because several amendments relate to ASA 315 and ASA 610 which concern understanding the entity and using the work of internal auditors, auditors and audit committees should ensure internal control narratives, risk assessment documentation and the basis for relying on internal audit work remain aligned to the amended footnotes and guidance.
In summary, the instrument modifies the textual content auditors rely upon when discharging their existing professional duties; it does not create substantive new duties outside the existing ASAs but tightens the wording and references auditors must follow. For engagements within the stated application, auditors and firms must adopt the amended text, update templates and ensure cross-references and paragraph citations reflect the amendments.
Penalties and enforcement
The instrument itself is an Auditing Standard published by the AUASB and described as a legislative instrument under the Legislation Act 2003. The Authority Statement confirms it is made pursuant to s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001. The instrument does not specify sanctions, fines or criminal penalties within its text. It therefore operates as a standard that forms part of the regulatory framework governing audit practice rather than as a statute that establishes new criminal offences or express civil remedies in this instrument.
How enforcement typically follows from this instrument, as indicated by the source:
The instrument modifies standards that apply to audits and reviews conducted under the Corporations Act 2001 (see "Application"). Auditors performing such engagements are expected to follow the ASAs, including the amendments made by ASA 2021-5.
Compliance with auditing standards is generally enforced through the broader regulatory architecture that governs audit conduct under the Corporations Act and by professional and regulatory bodies. The instrument itself does not set out enforcement mechanisms, but its status as a legislative instrument means it is part of the applicable standard-setting regime that ASIC, professional bodies, and courts may reference when assessing audit quality and conduct.
The AUASB is required under the Strategic Direction from the Financial Reporting Council to develop standards with a public interest focus; the instrument records this strategic context but does not change enforcement processes.
Practical points for firms and practitioners:
There is no penalty text in ASA 2021-5. However, because the amended ASAs apply to Corporations Act audits and reviews and are legislative instruments, failure to follow the ASAs (including the amended text) can be relevant evidence in regulatory investigations, professional disciplinary proceedings, or litigation concerning audit quality under existing law. The instrument itself does not prescribe those consequences; it simply amends the authoritative text auditors must follow.
The instrument's commencement and operative dates matter for enforcement in practice: the instrument commenced on 14 December 2021 (commencement table) and is operative for reporting periods commencing on or after 15 December 2021 ("Operative Date"). Auditors must apply the amended text for applicable reporting periods; regulators assessing conduct for reporting periods on or after the operative date would expect the amended text to be available and used.
Limitations and absence of express sanctions in the instrument:
ASA 2021-5 is composed of editorial corrections and clarifications; it does not create express penalty provisions. Any enforcement or sanctions linked to non‑compliance therefore derive from the broader legal and regulatory framework under the Corporations Act, ASIC enforcement powers, professional standards and disciplinary bodies rather than from penalties written into ASA 2021-5.
Users should therefore treat ASA 2021-5 as an authoritative amendment to the body of ASAs that auditors must apply; the instrument's legal status as a legislative instrument and its link to the Corporations Act make its provisions relevant in enforcement contexts even though the instrument does not explicitly set out penalties.
How it interacts with other laws
ASA 2021-5 sits within the Australian legal and regulatory framework for auditing. The instrument explicitly identifies the statutory bases for the AUASB's authority and links to the Corporations Act and ASIC Act, and it cross-references other ASAs whose content is affected.
Statutory foundation and legislative instrument status:
The AUASB makes ASA 2021-5 under s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001 ("Authority Statement"). The Preface reiterates the AUASB's status as a non‑corporate Commonwealth entity established under s 227A of the ASIC Act and states that Auditing Standards are legislative instruments under the Legislation Act 2003.
Because ASA 2021-5 is a legislative instrument, it forms part of the instruments that govern audit practice and is intended to be used in conjunction with the Corporations Act and other applicable law when an audit or review is performed under statutory obligations.
Interaction with the Corporations Act 2001:
The instrument applies expressly to audits and reviews "in accordance with the Corporations Act 2001" and refers to audits and reviews under Part 2M.3 and Part 7.8 of the Act in the amended text to ASA 101 para A31 (see "Amendments to ASA 101"). That places the instrument squarely within the scope of statutory audits and financial reporting obligations under the Act.
Practitioners applying the ASAs for Corporations Act engagements must ensure compliance both with the law and the amended standards. The instrument does not purport to override statutory obligations in the Corporations Act; it clarifies how ASAs should be read and cross‑referenced in that statutory context.
Relationship with other ASAs and prior amendments:
The document repeatedly updates footnotes and cross-references to ASA 315 and other ASAs "as amended" and records that paragraph renumbering from earlier instruments (ASA 2020-1, ASA 2015-1) has required updates (see "Amendments to ASA 330", "Amendments to ASA 560"). This indicates an interaction effect across the standards where one amending instrument leads to consequential changes in others.
The instrument notes that the amended ASAs will not include underlining or striking out used in the amending standard to illustrate changes; this is a procedural interaction between amending instruments and consolidated standards ("Amendments to Auditing Standards", para 1).
Conformity with international standards:
The instrument states that it was made for Australian legislative purposes and there is no equivalent International Standard on Auditing (ISA) for this amending standard (see "Conformity with International Standards on Auditing"). That indicates ASA 2021-5 is not intended to implement an IAASB ISA change but to align or correct Australian ASAs in their domestic form.
Legislative timing and commencement under the Legislation Act:
The instrument contains a commencement table and an explanatory note that the table relates only to provisions as originally made and will not be amended to deal with later amendments (see "Commencement of the legislative instrument" and the commencement table). This interacts with the Legislation Act processes for commencement and operation of legislative instruments.
Practical cross-law implications:
Because the ASAs apply to audits under the Corporations Act, changes to the wording of ASAs (for example, to ASA 502 regarding interactions with external legal counsel, and to ASA 540 regarding inherent risk assessment at the assertion level) affect auditors’ practices that also interact with legal privilege, client confidentiality and litigation risk practice. The instrument itself does not change legal privilege rules; it refines how ASAs instruct auditors to handle certain situations in practice.
The instrument also cross-references the AUASB Glossary and other AUASB standards (for example ASA 315, ASA 706, ASA 700/705) so practitioners must apply the amended ASAs alongside those sources.
In short, ASA 2021-5 is a domestic legislative instrument that modifies the text of Australian Auditing Standards and must be read and applied in conjunction with the Corporations Act, the ASIC Act, prior AUASB instruments, and other ASAs that are cross-referenced. It modifies internal linkages across the standard set and thus interacts procedurally with both the body of ASAs and the statutory auditing framework.
Amendment history
ASA 2021-5 itself is an amending instrument and the text records both its immediate provenance and the prior instruments it references. The amendment history as derivable from the source is as follows.
Making and dating:
The Authority Statement records the AUASB makes ASA 2021-5 pursuant to s 227B of the ASIC Act and s 336 of the Corporations Act. The Authority Statement is dated 5 November 2021 and bears the Chair's signature W R Edge (see "Authority Statement"; Preface "Dated: 5 November 2021 W R Edge Chair - AUASB").
Commencement and operative dates:
The instrument's commencement table records "The whole of this instrument" as commencing 14 December 2021 and the "Date/Details" column also records 14 December 2021 (see the commencement table under "Commencement information"). Separately the instrument states it is operative for financial reporting periods commencing on or after 15 December 2021 ("Operative Date").
The instrument includes a note that the commencement table relates only to the provisions as originally made and will not be amended to deal with later amendments.
Relationship to previously issued or amended ASAs:
The document lists the standards being amended and shows their prior issue and amendment dates as recorded in the affected standards. Examples from the "Main Features" and "Objective" lists include:
ASA 101 Preamble to AUASB Standards, issued 7 September 2021.
ASA 200 issued 27 October 2009 and amended to 7 September 2021.
ASA 240 issued 27 October 2009 and amended to 30 June 2020.
ASA 330 issued 27 October 2009 and amended to 1 December 2015.
ASA 502 issued 27 October 2009 and amended to 1 July 2013.
ASA 540 issued 5 December 2018.
ASRE 2415 issued 30 June 2010 and amended to 1 July 2013.
The instrument refers to prior amending standards by name and paragraph where applicable. For example it notes that paragraph insertions by ASA 2020-1 required re-numbering in ASA 330 ("Amendments to ASA 330"); it references the deletion of a paragraph by ASA 2015-1 in the ASA 560 section ("Amendments to ASA 560").
Specific paragraph-level changes recorded in this instrument:
ASA 101: footnote 12 in para A3 amended to read that ASRE 2410 and ASRE 2415 are included in legislation as "Auditing Standards"; footnote 25 in para A16 amended; para A31 updated to detail how the "Application" paragraph in each Auditing Standard applies with respect to Part 2M.3 and Part 7.8 of the Corporations Act (see "Amendments to ASA 101").
ASA 200: para A3 amended to the phrasing on "a risk of material misstatement exists when there is a reasonable possibility of"; footnotes 19 and 21 updated; paras A64, A69, A73 amended for explanatory clarity on application material, scalability and automated tools and techniques (see "Amendments to ASA 200").
ASA 240: para 17 amended to change referenced paragraph range to 23-43 (see "Amendments to ASA 240").
ASA 502: para 5 amended to cover situations where management refuses permission for auditor contact with external legal counsel or counsel refuses to respond (see "Amendments to ASA 502").
ASA 540: para 4 amended to reiterate requirement for separate inherent risk assessment at assertion level and to explain the spectrum of inherent risk (see "Amendments to ASA 540").
ASA 550: footnote 11 in para 23 updated to reference ASA 240 paragraph 33/32(c) (see "Amendments to ASA 550").
ASA 560: references updated following deletion of Aus A3.1 by ASA 2015-1 (see "Amendments to ASA 560").
ASA 570: Appendix 2 [Aus] Illustration 4A amended to reference reporting in accordance with ASA 700/705 in the auditor's responsibilities section (see "Amendments to ASA 570").
ASA 610 and ASA 620: multiple footnote references updated to refer to ASA 315 "as amended" and small wording corrections (see "Amendments to ASA 610" and "Amendments to ASA 620").
ASA 710: footnote 5 in para 16 updated to reference ASA 706 paragraphs 8 and Aus A8.1 (see "Amendments to ASA 710").
ASRE 2415: existing paragraph 11 and footnote 4 deleted (see "Amendments to ASRE 2415").
Presentation conventions:
The amending standard explains the typographical method used to show changes (deleted text struck through, new text underlined, ellipses for context), and states that those markings do not form part of the amended standards (see "Amendments to Auditing Standards").
Documentation and continuity:
The instrument contains duplicated blocks of text in the source as presented; the legal instrument itself records that paragraph numbering and cross-references will be updated where insertions or deletions occur to maintain internal consistency.
Overall, ASA 2021-5 is a concise amending instrument with a clear record of the specific textual edits it makes to a set of ASAs and ASRE 2415, with a dated making and a commencement/operative timetable. The history recorded in the instrument connects it to earlier standards and prior amendments which practitioners must consider when applying the updated ASAs.
Litigation history
The instrument text does not record any litigation history. It contains no references to court decisions, tribunal determinations or published cases. The only named institutional actors are the AUASB, the Financial Reporting Council (Strategic Direction), and references to legislative provisions in the Australian Securities and Investments Commission Act 2001 (s 227A, s 227B) and the Corporations Act 2001 (s 336). There are no cases cited, no judicial interpretations of these amendments in the instrument, and no narrative about dispute resolution or precedent.
Consequently, based on the source supplied:
There are no recorded judicial determinations interpreting ASA 2021-5 or its specific textual amendments.
There are no examples of litigation that turned on the amended wording, nor any appeals or court challenges mentioned in the instrument text.
The instrument does not discuss or cite prior case law regarding the interpretation of the ASAs it amends.
For practitioners and researchers, the absence of litigation history in the text means interpretation and application guidance will come primarily from:
The AUASB's explanatory material within the ASAs themselves and in the AUASB Glossary and Framework documents referenced in the amended footnotes and paragraphs.
Regulatory guidance from ASIC or professional bodies about the application of ASAs in enforcement or supervisory contexts, none of which are included in this instrument.
If a reader requires judicial interpretation of the specific amended paragraph wording or cross‑references, that material will not be found in ASA 2021-5 and must be sought from subsequent regulatory decisions or court judgments external to the instrument. The ASA 2021-5 instrument itself contains no litigation history or cases to cite.
Gotchas
The amending instrument is modest in scope, but the source identifies several items that can cause practical confusion or implementation risk if not handled deliberately. These "gotchas" are drawn directly from the instrument's content and its presentation mechanics.
Commencement versus operative date nuance:
The commencement table records the whole instrument as commencing on 14 December 2021, while the operative date states the standard is operative for reporting periods commencing on or after 15 December 2021. Practitioners must distinguish between the instrument's legal commencement (14 December 2021) and the operative application to financial reporting periods (15 December 2021). Failure to observe this timing could lead to misapplication of the amended ASAs to earlier reporting periods.
Cross-reference and paragraph-numbering ripple effects:
The instrument contains numerous updates to footnotes and paragraph references resulting from previous amendments (for example ASA 2020-1 and ASA 2015-1 are explicitly mentioned). Auditors relying on older versions of an ASA may find citations mismatched. Examples include ASA 240 para 17 where paragraph references change from 18-25 to 23-43. Firms must ensure all internal documents, checklists and templates reference the amended paragraph numbers and footnotes. Overlooking these changes can create documentation inconsistencies and make it harder to demonstrate compliance with the current standard text.
"As amended" references require vigilance:
Several footnotes are changed to refer to other standards "as amended" (e.g., ASA 315 (as amended)). Auditors must ensure they are using the most recent consolidated versions of referenced standards. Using a previous, unamended version of a cross-referenced ASA can create logical inconsistencies in audit programs and evidence collection.
Presentation conventions are not substantive:
The instrument explains that underlining and striking out are used in the amending standard to indicate changes, but the final amended ASA text does not include those markings. Readers who rely on the amending standard's marked-up text may inadvertently transpose markup into firm manuals. Confirm the consolidated, final text rather than relying on the visual conventions used in the amending instrument.
Deletion of ASRE 2415 paragraph 11 and footnote 4:
The deletion may have downstream effects for entities that previously relied on that paragraph. Auditors and reviewers should identify where internal procedures depended on the deleted paragraph or footnote and update their approach accordingly.
Minor wording changes can alter interpretive emphasis:
The instrument is labelled editorial but some wording clarifications could affect interpretation. For example ASA 540 para 4 emphasises separate assessment of inherent risk at the assertion level and the "spectrum of inherent risk" concept. While this reflects existing ASA 540 content, the clarified language could lead firms to document assertion-level inherent risk assessments more explicitly. Similarly ASA 502 para 5's amended wording about management refusing permission to contact external legal counsel clarifies when a limitation exists; practitioners should ensure legal-enquiry templates and documentation reflect this wording.
Duplication in the instrument text:
The source as provided contains repeated blocks and duplications of the same amendment text. While this is likely an artefact of the document copy provided, it signals a need for practitioners to rely on the final consolidated standards as published on the AUASB website rather than on a draft or duplicated internal copy.
No change to definitions but reliance on AUASB Glossary:
The instrument explicitly states it does not introduce new definitions and that meanings are set out in each Auditing Standard and the AUASB Glossary. Practitioners must confirm glossary meanings and any "as amended" status rather than assuming terms are unchanged in effect.
Reference to ASA 700/705 in ASA 570 amendment:
The amendment to an illustrative auditor's report in ASA 570 references reporting in accordance with ASA 700/705. Firms should check which version of ASA 700/705 applies to their engagements and confirm any related illustrative text.
Legislative instrument status implies regulatory expectations:
The instrument is a legislative instrument under the Legislation Act 2003. That elevates the amended ASAs' normative status in regulatory contexts; practitioners should ensure firms update practice manuals and training to reflect the consolidated standards.
In short, the main operational risks are mismatched cross‑references, outdated internal templates and the possibility of applying the wrong paragraph numbering or an older version of a cross-referenced ASA. The practical fix is to obtain the AUASB consolidated versions of the affected ASAs and to update firm documentation and legal-enquiry templates in line with the amended text.
How to comply
Compliance with ASA 2021-5 involves procedural updates and confirmation that audit documentation and templates align with the amended ASAs. The following stepwise checklist is grounded in the instrument's content and highlights concrete actions auditors, audit firms and audit committees should take.
Obtain the consolidated authoritative texts:
Retrieve the consolidated versions of the ASAs and ASRE 2415 as amended by ASA 2021-5 from the AUASB website (the Preface indicates the standard is available on the AUASB website). Do not rely on the marked-up amending instrument alone; use the final consolidated documents which do not include underlining or strike-throughs.
Review commencement and operative timing:
Note that the instrument commenced on 14 December 2021 and is operative for financial reporting periods commencing on or after 15 December 2021 ("Operative Date"). For engagements with reporting periods commencing on or after 15 December 2021, apply the amended standards in planning, performing and reporting.
Update internal methodology and templates:
Amend audit manuals, engagement letters, audit programmes, workpaper templates and risk assessment checklists to reflect:
Revised paragraph numbers and footnotes (for example ASA 240 paragraph references updated to 23-43 where relevant).
Modified wording in ASA 540 para 4 about assertion-level inherent risk and the spectrum of inherent risk, ensuring that templates prompt separate assertion-level inherent risk assessments for accounting estimates.
ASA 502 para 5 wording regarding circumstances where management refuses permission to contact external legal counsel; update legal-enquiry templates and escalation procedures to capture these scenarios and document any limitations.
Align cross-references to "as amended" standards:
Where the instrument amends footnotes to reference other standards "as amended" (for example ASA 315 referenced in ASA 610 and ASA 620), ensure firms use the latest consolidated versions of those referenced standards. Update any internal cross-reference maps and hyperlinks in firm documentation.
Train engagement teams on targeted changes:
Communicate the specific amendments to audit partners, engagement managers and senior staff. Emphasise paragraph renumbering, the assertion-level inherent risk wording in ASA 540, and the ASA 502 legal-counsel contact scenarios as the items most likely to affect everyday audit procedures and documentation.
Reconcile and correct existing engagement documentation where necessary:
For ongoing engagements covering reporting periods that fall under the operative date, review audit programmes and evidence workflows to ensure any references to the old paragraph numbers, footnotes or wording are updated. If an engagement commenced before the operative date but relates to a reporting period commencing on or after 15 December 2021, treat the engagement as subject to the operative amendment.
Confirm deleted content implications:
Note that ASRE 2415 paragraph 11 and footnote 4 are deleted. Check whether any firm procedures or checklists relied specifically on that paragraph and revise practice material accordingly.
Ensure reporting templates are consistent with illustrative changes:
The ASA 570 amendment to the illustrative auditor's report references reporting in accordance with ASA 700/705. Confirm the firm’s auditor report templates and illustrative reports align to the amended guidance and applicable ASA 700/705 text.
Maintain version control and audit trail of methodology updates:
Keep a record within the firm of when ASA 2021-5 was implemented in firm methodology, including the date the consolidated texts were adopted and changes made to templates. This record will assist in regulatory inquiries or quality reviews that review historical alignment to standards.
Liaise with legal and compliance teams:
For issues arising from ASA 502’s amendment about communications with external legal counsel, involve legal and compliance teams to confirm rights and obligations regarding client consent, privilege and when counsel refuses or is prohibited from responding. Document management's refusals and the auditor’s consequent evaluation of scope limitation.
Refresh external communications and client instructions:
Where pre-audit client instructions or management representation templates reference specific ASA paragraphs or advisory footnotes, update those client-facing documents to reference the amended ASAs and notify clients of any procedural changes that may affect legal-enquiry responses or evidence requests.
Monitor AUASB and ASIC guidance for any further clarifications:
Because ASA 2021-5 is an editorial amending standard, further practical guidance or interpretative material may be published by the AUASB or ASIC. Continue to monitor official sources for clarifications, consolidation releases and any consequential amending instruments.
Concrete examples of immediate tasks:
Replace references in legal enquiry letters from "see ASA 502 para 5" to the amended text and add a documented step to escalate if management refuses permission to contact external counsel.
Modify the audit programme for accounting estimates to include a discrete assertion-level inherent risk assessment entry for each estimate, reflecting the ASA 540 clarification.
Update all references to ASA 315 to indicate "ASA 315 (as amended)" where the amending standard requires it and confirm the version used.
By following these steps firms will ensure that ASA 2021-5’s textual amendments are reflected in practice materials, that paragraph numbering and cross-references are consistent across documentation, and that auditors apply the amended guidance in engagements within the stated operative date.
Requests and enquiries concerning reproduction and rights for commercial purposes should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
ISSN 1833-4393
CONTENTS
PREFACE
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Amendments to Auditing Standards............................................7-8
Amendments to ASA 101.....................................................9-11
Amendments to ASA 200....................................................12-17
Amendments to ASA 240......................................................18
Amendments to ASA 330......................................................19
Amendments to ASA 502....................................................20-21
Amendments to ASA 540......................................................22
Amendments to ASA 550......................................................23
Amendments to ASA 560......................................................24
Amendments to ASA 570......................................................25
Amendments to ASA 610....................................................26-30
Amendments to ASA 620......................................................31
Amendments to ASA 710......................................................32
Amendments to ASRE 2415....................................................33
preface
Reasons for Issuing ASA 2021-5
The AUASB issues Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.
The AUASB is a non corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.
Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.
Main Features
This Auditing Standard makes amendments to the requirements and application & other explanatory material of the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Dated: 5 November 2021 W R Edge
Chair - AUASB
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Reasons for Issuing ASA 2021-5 Reasons for Issuing ASA 2021-5
Reasons for Issuing ASA 2021-5
The AUASB issues Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to the requirements of the legislative provisions and the Strategic Direction explained below.
The AUASB is a non corporate Commonwealth entity of the Australian Government established under section 227A of the Australian Securities and Investments Commission Act 2001, as amended (ASIC Act). Under section 336 of the Corporations Act 2001, the AUASB may make Auditing Standards for the purposes of the corporations legislation. These Auditing Standards are legislative instruments under the Legislation Act 2003.
Under the Strategic Direction given to the AUASB by the Financial Reporting Council (FRC), the AUASB is required, inter alia, to develop auditing standards that have a clear public interest focus and are of the highest quality.
Main Features Main Features
Main Features
This Auditing Standard makes amendments to the requirements and application & other explanatory material of the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
ASA 330 The Auditor's Responses to Assessed Risks (Issued 27 October 2009 and amended to 1 December 2015)
ASA 502 Audit Evidence ─ Specific Considerations for Litigation and Claims (Issued 27 October 2009 and amended to 1 July 2013)
ASA 540 Auditing Accounting Estimates and Related Disclosures (Issued 5 December 2018)
ASA 550 Related Parties (Issued 27 October 2009 and amended to 11 November 2013)
ASA 560 Subsequent Events (Issued 27 October 2009 and amended to 7 September 2021)
ASA 570 Going Concern (Issued 1 December 2015 and amended to 30 June 2020)
ASA 610 Using the Work of Internal Auditors (Issued 11 November 2013)
ASA 620 Using the Work of an Auditor’s Expert (Issued 27 October 2009 and amended to 30 June 2020)
ASA 710 Comparative Information-Corresponding Figures and Comparative Financial Reports (Issued 27 October 2009 and amended to 30 June 2020)
ASRE 2415 Review of a Financial Report: Company Limited by Guarantee or an Entity Reporting under the ACNC Act or Other Applicable Legislation or Regulation (Issued 30 June 2010 and amended to 1 July 2013)
The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Dated: 5 November 2021 W R Edge
Chair - AUASB
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
AUTHORITY STATEMENT AUTHORITY STATEMENT
AUTHORITY STATEMENT
The Auditing and Assurance Standards Board (AUASB) makes this Auditing Standard ASA 2021-5 Amendments to Australian Auditing Standards pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001.
Conformity with International Standards Conformity with International Standards on Auditing
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Auditing Standard ASA 2021-5 Auditing Standard ASA 2021-5
Auditing Standard ASA 2021-5
Amendments to Australian Auditing Standards
Application
This Auditing Standard applies to:
an audit or a review of a financial report for a financial year, or an audit or a review of a financial report for a half-year, in accordance with the Corporations Act 2001; and
an audit or a review of a financial report, or a complete set of financial statements, for any other purpose.
This Auditing Standard also applies, as appropriate, to an audit or a review of other historical financial information.
Operative Date
This Auditing Standard is operative for financial reporting periods commencing on or after 15 December 2021.
Introduction
Scope of this Auditing Standard
This Auditing Standard makes amendments to Australian Auditing Standards. The amendments represent editorial corrections to revise minor inaccuracies, including misspellings and numbering or grammatical mistakes.
Objective
The objective of this Auditing Standard is to make amendments to the following Auditing Standards:
ASA 101 Preamble to AUASB Standards (Issued 7 September 2021)
ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards (Issued 27 October 2009 and amended to 7 September 2021)
ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (Issued 27 October 2009 and amended to 30 June 2020)
This is an opening excerpt, not the complete document.