Amendments to ASRE 2410Amendments to ASRE 2410

Amendments to ASRE 2410

1. Existing paragraph 9 is amended to read as follows:

The auditor shall implement quality controlmanagement procedures that are applicable to the individual engagement.

1. Existing paragraph 13 is amended to read as follows:

The auditor shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of including its internal control, as it relates to the preparation of both the annual and interim or other financial reports, sufficient to plan and conduct the engagement so as to be able to:

…

1. Existing paragraph 14 is amended to read as follows:

In order to plan and conduct a review of a financial report, a recently appointed auditor, who has not yet performed an audit of the annual financial report in accordance with Australian Auditing Standards, shall obtain an understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of including its internal control, as it relates to the preparation of both the annual and interim or other financial reports.

1. Existing paragraph A4 is amended to read as follows:

Through performing the audit of the annual financial report, the auditor obtains an understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of including its internal control. When the auditor is engaged to review the financial report, under paragraph 13, the auditor needs to update this understanding through enquiries made in the course of the review, to assist the auditor in focusing the enquiries to be made and the analytical and other review procedures to be applied. A practitioner who is engaged to perform a review of a financial report, and who is not the auditor of the entity, does not perform the review in accordance with ASRE 2410* , as the practitioner ordinarily does not have the same understanding of the entity and its environment, the applicable financial reporting framework, and the entity’s system of including its internal control, as the auditor of the entity.

…

1. Existing paragraph A6 is amended to read as follows:

The elements of quality controlmanagement that are relevant to an individual engagement include leadership responsibilities for managing and achieving quality on the engagement, relevant ethical requirements, acceptance and continuance of client relationships and specific engagements, assignment of engagement teamsengagement resources, engagement performance, and monitoring and remediation. ASQCM 1 and ASA 2206 include guidance that may be helpful.