Auditing Standard ASA 2025-4 Amendments to Australian Auditing Standards
Amendments to ASA 540Amendments to ASA 540
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Amendments to ASA 540
- Existing paragraph A75 is amended to read as follows:
In some cases, the estimation uncertainty relating to an accounting estimate may affect the auditor’s professional judgement as to whether a material uncertainty exists related to events or conditions that may cast significant doubt abouton the entity’s ability to continue as a going concern. ASA 57049 establishes requirements and provides guidance in such circumstances.
- Footnote 61 is inserted in existing paragraph A135 as follows:
Indicators of possible management bias may affect the auditor’s conclusion as to whether the auditor’s risk assessment and related responses remain appropriate. The auditor may also need to consider the implications for other aspects of the audit,[61] including the need to further question the appropriateness of management’s judgements in making accounting estimates. Further, indicators of possible management bias may affect the auditor’s conclusion as to whether the financial report as a whole is free from material misstatement, as discussed in ASA 700.61