Amendments to ASA 230Amendments to ASA 230

Amendments to ASA 230

1. Existing paragraph A10 is amended to read as follows:

Some examples of circumstances in which, in accordance with paragraph 8, it is appropriate to prepare audit documentation relating to the use of professional judgement include, where the matters and judgements are significant:

 The rationale for the auditor’s conclusion when a requirement provides that the auditor ‘shall consider’ certain information or factors, and that consideration is significant in the context of the particular engagement.

 The basis for the auditor’s conclusion on the reasonableness of areas of subjective judgements made by management, for example management’s judgements in relation to going concern basis of accounting.[7]

 The basis for the auditor’s evaluation of whether an accounting estimate and related disclosures are reasonable in the context of the applicable financial reporting framework, or are misstated.

 …

1. Existing Appendix 1 is amended to read as follows:

Specific Audit Documentation Requirements in Other Australian Auditing Standards

This appendix identifies paragraphs in other Australian Auditing Standards that contain specific documentation requirements. The list is not a substitute for considering the requirements and related application and other explanatory material in Australian Auditing Standards.

 ASA 210 Agreeing the Terms of Audit Engagements – paragraphs 10-12

 …

 ASA 550 Related Parties – paragraph 28

 ASA 570 Going Concern – paragraph 44

 ASA 600 Special Considerations—Audits of Group Financial Reports (Including the Work of Component Auditors) – paragraph 59

 …