Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement
COMPILATION DETAILSCOMPILATION DETAILS
Start here
Get a plain-English read of COMPILATION DETAILS
Turn the raw legal text into a practical explanation grounded in Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement.
The most recently compiled versions of Auditing Standards, original Standards and amending Standards (see Compilation Details) are available on the AUASB website: www.auasb.gov.au
Contact Details
Auditing and Assurance Standards BoardPhone: (03) 8080 7400E-mail: enquiries@auasb.gov.auPostal Address:PO Box 204Collins Street WestMelbourne Victoria 8007AUSTRALIA
Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Otherwise, no part of this Auditing Standard may be reproduced, stored or transmitted in any form or by any means without the prior written permission of the AUASB except as permitted by law.
This Auditing Standard reproduces substantial parts of the corresponding International Standard on Auditing issued by the International Auditing and Assurance Standards Board (IAASB) and published by the International Federation of Accountants (IFAC), in the manner described in the statement on Conformity with International Standards on Auditing. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Auditing incorporated in this Auditing Standard throughout the world.
All existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only.
Further information and requests for authorisation to reproduce this Auditing Standard for commercial purposes outside Australia should be addressed to the Technical Director, Auditing and Assurance Standards Board, PO Box 204, Collins Street West, Melbourne, Victoria 8007 or sent to enquiries@auasb.gov.au. Any decision to approve a request may also require the agreement of IFAC.
ISSN 1833-4393
Part COMPILATION DETAILS - Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement - COMPILATION DETAILS | Zoe
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Risk Assessment Procedures and Related Activities.................................13-18
Obtaining an Understanding of the Entity and Its Environment, the Applicable Financial Reporting Framework and the Entity’s System of Internal Control 19-27
Identifying and Assessing the Risks of Material Misstatement.........................28-37
Risk Assessment Procedures and Related Activities..............................A11-A47
Obtaining an Understanding of the Entity and Its Environment, the Applicable Financial Reporting Framework and the Entity’s System of Internal Control A48-A183
Identifying and Assessing the Risks of Material Misstatement.....................A184-A236
Appendix 1: Considerations for Understanding the Entity and its Business Model
Appendix 2: Understanding Inherent Risk Factors
Appendix 3: Understanding the Entity’s System of Internal Control
Appendix 4: Considerations for Understanding an Entity’s Internal Audit Function
Appendix 5: Considerations for Understanding Information Technology (IT)
Appendix 6: Considerations for Understanding General IT Controls
COMPILATION DETAILS
Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement (as Amended)
This compilation takes into account amendments made up to and including 27 April 2022 and was prepared on 1 March 2023 by the Auditing and Assurance Standards Board (AUASB).
This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 315 (February 2020) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASA 315 [A]
February 2020
Financial reporting periods commencing on or after 15 December 2021
ASA 2021-1 [B]
10 March 2021
Financial reporting periods commencing on or after 15 December 2022
ASA 2022-1 [C]
27 April 2022
Financial reporting periods commencing on or after 15 December 2023
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 315
F2020L00234
6 March 2020
7 March 2020
ASA 2021‑1
F2021L00403
1 April 2021
14 December 2022
ASA 2022-1
F2022L00712
19 May 2022
14 December 2023
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
A38Footnote 25
Amended
ASA 2021-1 [83]
A69
Amended
ASA 2021-1 [84]
A69Footnote 33
Amended
ASA 2021-1 [85]
A218Footnote 56
Amended
ASA 2021-1 [86]
A45
Amended
ASA 2022-1 [28]
A218Footnote 57
Amended
ASA 2022-1 [29]
AUTHORITY STATEMENT
Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement (as amended to 27 April 2022) is set out in paragraphs Aus 0.1 to A241 and Appendices 1 to 6.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied. This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Conformity with International Standards on Auditing
This Auditing Standard conforms with International Standard on Auditing ISA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.
Compliance with this Auditing Standard enables compliance with ISA 315.