Amendments to ASA 700Amendments to ASA 700

Amendments to ASA 700

1. Existing paragraph 39 is amended to read as follows:

The Auditor’s Responsibilities for the Audit of the Financial Report section of the auditor’s report shall further: (Ref: Para. A50)

(a) …

(c) When ASA 60017 applies, further describe the auditor’s responsibilities in a group audit engagement by stating that:

1. The auditor’s responsibilities are to plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business unitsactivities within the group as a basis for formingto express an opinion on the group financial report;

2. The auditor is responsible for the direction, supervision and reviewperformance of the audit work performed for purposes of the group audit; and

3. The auditor remains solely responsible for the auditor’s opinion.[18]

4. Existing paragraph A38 is amended to read as follows:

In group audits for whichwhen there are multiple sources of relevant ethical requirements, including those pertaining to independence, the reference in the auditor’s report to the jurisdiction ordinarily relates to the relevant ethical requirements that are applicable to the group auditorengagement team. This is because, in a group audit, component auditors are also subject to ethical requirements that are relevant to the group audit.[28]

1. Existing paragraph A39 is amended to read as follows:

The Australian Auditing Standards do not establish specific independence or ethical requirements for auditors, including component auditors, and thus do not extend, or otherwise override, the independence requirements of the relevant ethical requirements or other ethical requirements to which the group auditorengagement team is subject, nor do the Australian Auditing Standards require that the component auditor in all cases to be subject to the same specific independence requirements that are applicable to the group auditorengagement team. As a result, relevant ethical requirements, including those pertaining to independence, in a group audit situation may be complex. ASA 600[29] provides guidance for auditors in performing work on the financial information of a component for a group audit, including those situations where the component auditor does not meet the independence requirements that are relevant to the group audit.

1. [Aus] Illustration 2A: Example Auditor’s Report for Group Entity – Corporations Act 2001 (Fair Presentation Framework), is amended as follows: