Amendments to ASA 260Amendments to ASA 260

Amendments to ASA 260

1. Existing paragraph A21 is amended to read as follows:

Significant difficulties encountered during the audit may include such matters as:

 …

 Restrictions imposed on the auditor by management.

 Management’s unwillingness to make or extend its assessment of the entity’s ability to continue as a going concern when requested.[13]

In some circumstances, such difficulties may constitute a scope limitation that leads to a modification of the auditor’s opinion.13

1. Existing paragraph A24 is amended to read as follows:

Circumstances in which the auditor is required or may otherwise consider it necessary to include additional information in the auditor’s report in accordance with the Australian Auditing Standards, and for which communication with those charged with governance is required, include when, for example:

 The auditor expects to modify the opinion in the auditor’s report in accordance with ASA 705.16

 …

1. Existing footnote 17 in paragraph A24 is amended to read as follows:

See ASA 570 Going Concern, paragraph 42(f)25(d).

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

This appendix identifies paragraphs in ASQM 131 and other Australian Auditing Standards that require communication of specific matters with those charged with governance. The list is not a substitute for considering the requirements and related application and other explanatory material in Australian Auditing Standards.

 ASQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services Engagements – paragraph 34(e)

 …

 ASA 570 Going Concern – paragraphs 41-42 25

 …