Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (reissued December 2019) | Zoe
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (reissued December 2019)
In ForceCTH
Jurisdiction
Commonwealth
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legislative instrument
Plain English Summary
3/10 complexity
Mechanically, ASA 102 requires auditors, assurance practitioners, engagement-quality reviewers and their firms to comply with relevant ethical requirements (including independence) when performing audits, reviews and other assurance engagements. It applies to engagements under the Corporations Act and to firms required to comply with ASQM 1, operative for reporting periods ending on or after 31 December 2019. Firms and practitioners bear the compliance cost and must apply APES 110 alongside AUASB cross-references (see para.6; Definitions).
This compilation sets out Auditing Standard ASA 102, titled "Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements", as made by the Auditing and Assurance Standards Board (AUASB) and amended up to 15 March 2023 (Compilation Details). Mechanically, ASA 102 imposes a single affirmative obligation: the auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements (requirement at paragraph 6). The Standard defines the scope (application paragraph 1), operative date (operative date paragraph 1), objective (objective paragraph 1), and relevant definitions (definitions paragraph 1 subparas). It is to be read with ASA 101 and ASA 200 (Authority Statement).
The Standard does not itself set a new code of ethics. Instead, it expressly incorporates and directs users to “relevant ethical requirements”, which in Australia include the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) as issued by the APESB (Application and explanatory material, para. A1). The Standard also directs firms required to comply with ASQM 1 (Quality Management for Firms) to have those obligations in scope (Application paragraph 1(e)). ASA 102 cross-references international standards (ISQM 1, ISQM 2, ISA 200, ISA 220) as sources for its requirement and explanatory material (Conformity with International Standards on Auditing table).
The legislative and instrument-making basis is stated: the AUASB made ASA 102 pursuant to s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001 (Auditing Standard ASA 102 paragraph). The compilation provides operative dates for the base standard and subsequent amending standards (Table of Standards and Compilation Details), and records which paragraphs were amended or deleted by which amending standard (Table of Amendments).
Current sections
Direct links to the current provisions in Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (reissued December 2019).
22
Obtaining a Copy of this Auditing Standa
Obtaining a Copy of this Auditing Standard
Obtaining a Copy of this Auditing Standard
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
Contact Details
Contact Details
Auditing and Assurance Standards BoardPodium Level 20, 500 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (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 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.
ISSN 1833-4393
CONTENTS
CONTENTS
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Compliance with Relevant Ethical Requirements......................................6
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements..................................A1-A6
COMPILATION DETAILS
COMPILATION DETAILS
Obtaining a Copy of this Auditing Standard
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 BoardPodium Level 20, 500 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (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 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.
ISSN 1833-4393
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Compliance with Relevant Ethical Requirements......................................6
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements..................................A1-A6
COMPILATION DETAILS
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
This compilation takes into account amendments made up to and including 15 March 2023 and was prepared on 22 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 102 (December 2019) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASA 102
4 December 2019
Financial reporting periods ending on or after 31 December 2019[*]
ASA 2021-1
10 March 2021
Financial reporting periods commencing on or after 15 December 2022
ASA 2023-1
15 March 2023
Financial reporting periods commencing on or after 1 January 2023
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 102
F2019L01673
19 December 2019
20 December 2019
ASA 2021‑1
F2021L00403
1 April 2021
2 April 2021
ASA 2023-1
F2023L00295
21 March 2023
22 March 2023
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Conformity with International Standards on Auditing
Amended
ASA 2021-1 [11]
1
Amended
ASA 2021-1 [12]
3
Amended
ASA 2021-1 [13]
4
Amended
ASA 2021-1 [14]
5
Amended
ASA 2021-1 [15]
6
Amended
ASA 2021-1 [16]
A1
Amended
ASA 2021-1 [17]
A2
Amended
ASA 2021-1 [18]
A4
Amended
ASA 2021-1 [19]
A7
Amended
ASA 2021-1 [20]
5
Amended
ASA 2023-1 [9]
6 and its heading
Amended
ASA 2023-1 [10]
A1
Amended
ASA 2023-1 [11]
A3
Amended
ASA 2023-1 [12]
A4
Amended
ASA 2023-1 [13]
A5
Amended
ASA 2023-1 [14]
A6
Deleted
ASA 2023-1 [15]
A7
Amended
ASA 2023-1 [16]
AUTHORITY STATEMENT
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as amended to 15 March 2023) is set out in paragraphs 1 to A6.
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 has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
However, the requirement and application and other explanatory material in this Auditing Standard have been drawn from ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, ISQM 2 Engagement Quality Reviews, ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing and ISA 220 Quality Management for an Audit of Financial Statements, issued by the IAASB, as listed in the following table:
Compliance with this Auditing Standard, together with other Australian Auditing Standards, enables compliance with the ISAs and ISQMs.
Auditing Standard ASA 102 Compliance wit
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
This compilation takes into account amendments made up to and including 15 March 2023 and was prepared on 22 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 102 (December 2019) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Table of Standards
Table of Standards
Standard
Date made
Operative Date
ASA 102
4 December 2019
Financial reporting periods ending on or after 31 December 2019[*]
ASA 2021-1
10 March 2021
Financial reporting periods commencing on or after 15 December 2022
ASA 2023-1
15 March 2023
Financial reporting periods commencing on or after 1 January 2023
Legislation History
Legislation History
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 102
F2019L01673
19 December 2019
20 December 2019
ASA 2021‑1
F2021L00403
1 April 2021
2 April 2021
ASA 2023-1
F2023L00295
21 March 2023
22 March 2023
Table of Amendments
Table of Amendments
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Conformity with International Standards on Auditing
Amended
ASA 2021-1 [11]
1
Amended
ASA 2021-1 [12]
3
Amended
ASA 2021-1 [13]
4
Amended
ASA 2021-1 [14]
5
Amended
ASA 2021-1 [15]
6
Amended
ASA 2021-1 [16]
A1
Amended
ASA 2021-1 [17]
A2
Amended
ASA 2021-1 [18]
A4
Amended
ASA 2021-1 [19]
A7
Amended
ASA 2021-1 [20]
5
Amended
ASA 2023-1 [9]
6 and its heading
Amended
ASA 2023-1 [10]
A1
Amended
ASA 2023-1 [11]
A3
Amended
ASA 2023-1 [12]
A4
Amended
ASA 2023-1 [13]
A5
Amended
ASA 2023-1 [14]
A6
Deleted
ASA 2023-1 [15]
A7
Amended
ASA 2023-1 [16]
AUTHORITY STATEMENT
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as amended to 15 March 2023) is set out in paragraphs 1 to A6.
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 has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
However, the requirement and application and other explanatory material in this Auditing Standard have been drawn from ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, ISQM 2 Engagement Quality Reviews, ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing and ISA 220 Quality Management for an Audit of Financial Statements, issued by the IAASB, as listed in the following table:
Compliance with this Auditing Standard, together with other Australian Auditing Standards, enables compliance with the ISAs and ISQMs.
AUTHORITY STATEMENT
AUTHORITY STATEMENT
AUTHORITY STATEMENT
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as amended to 15 March 2023) is set out in paragraphs 1 to A6.
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
Conformity with International Standards on Auditing
Conformity with International Standards on Auditing
This Auditing Standard has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
However, the requirement and application and other explanatory material in this Auditing Standard have been drawn from ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, ISQM 2 Engagement Quality Reviews, ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing and ISA 220 Quality Management for an Audit of Financial Statements, issued by the IAASB, as listed in the following table:
Compliance with this Auditing Standard, together with other Australian Auditing Standards, enables compliance with the ISAs and ISQMs.
Auditing Standard ASA 102
Auditing Standard ASA 102
Auditing Standard ASA 102
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on December 2019.
This compiled version of ASA 102 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 15 March 2023 (see Compilation Details).
Auditing Standard ASA 102
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements (Ref: Para. 6)
The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met. In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.
APES 110 establishes the fundamental principles of ethics which are:
Integrity;
Objectivity;
Professional competence and due care;
Confidentiality; and
Professional behaviour.
The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.
APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality reviewer and firm are required to apply when identifying, evaluating and addressing threats to compliance with the fundamental principles.
In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements.
APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.
The definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards. In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB Standards.
Compliance with Ethical Requirements whe
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Auditing Standard ASA 102
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on December 2019.
This compiled version of ASA 102 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 15 March 2023 (see Compilation Details).
Auditing Standard ASA 102
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements (Ref: Para. 6)
The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met. In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.
APES 110 establishes the fundamental principles of ethics which are:
Integrity;
Objectivity;
Professional competence and due care;
Confidentiality; and
Professional behaviour.
The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.
APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality reviewer and firm are required to apply when identifying, evaluating and addressing threats to compliance with the fundamental principles.
In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements.
APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.
The definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards. In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB Standards.
Application
Application
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
Operative Date
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Introduction
Auditing Standard ASA 102
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on December 2019.
This compiled version of ASA 102 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 15 March 2023 (see Compilation Details).
Auditing Standard ASA 102
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements (Ref: Para. 6)
The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met. In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.
APES 110 establishes the fundamental principles of ethics which are:
Integrity;
Objectivity;
Professional competence and due care;
Confidentiality; and
Professional behaviour.
The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.
APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality reviewer and firm are required to apply when identifying, evaluating and addressing threats to compliance with the fundamental principles.
In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements.
APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.
The definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards. In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB Standards.
Scope of this Auditing Standard
Scope of this Auditing Standard
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
Objective
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
Definitions
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Requirements
Auditing Standard ASA 102
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on December 2019.
This compiled version of ASA 102 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 15 March 2023 (see Compilation Details).
Auditing Standard ASA 102
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements (Ref: Para. 6)
The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met. In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.
APES 110 establishes the fundamental principles of ethics which are:
Integrity;
Objectivity;
Professional competence and due care;
Confidentiality; and
Professional behaviour.
The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.
APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality reviewer and firm are required to apply when identifying, evaluating and addressing threats to compliance with the fundamental principles.
In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements.
APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.
The definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards. In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB Standards.
Compliance with Relevant Ethical Require
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Materi
Application and Other Explanatory Material
Auditing Standard ASA 102
The Auditing and Assurance Standards Board (AUASB) made Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements pursuant to section 227B of the Australian Securities and Investments Commission Act 2001 and section 336 of the Corporations Act 2001, on December 2019.
This compiled version of ASA 102 incorporates subsequent amendments contained in other Auditing Standards made by the AUASB up to and including 15 March 2023 (see Compilation Details).
Auditing Standard ASA 102
Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements
Application
This Auditing Standard applies to:
an audit of a financial report for a financial year, or an audit or review of a financial report for a half-year, in accordance with the Corporations Act 2001;
an audit or review of a financial report, or a complete set of financial statements, for any other purpose;
an audit or review of other financial information;
other assurance engagements; and
a firm required to comply with 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.
Operative Date
This Auditing Standard is operative for engagements with financial reporting periods ending on or after 31 December 2019. Early adoption of this Auditing Standard is permitted prior to this date. [Note: For operative dates of paragraphs changed or added by an Amending Standard, see Compilation Details.]
Introduction
Scope of this Auditing Standard
This Auditing Standard includes a requirement for auditors, assurance practitioners, engagement quality reviewers and firms to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Objective
The objective of the auditor, assurance practitioner, engagement quality reviewer and firm is to comply with relevant ethical requirements, including those pertaining to independence, relating to audits, reviews and other assurance engagements.
Definitions
For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
Assurance practitioner means assurance practitioner as defined in ASQM 1.
Auditor means auditor as defined in ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Engagement quality reviewer means engagement quality reviewer as defined in ASQM 1.
Relevant ethical requirements means ethical requirements that apply to the auditor, assurance practitioner, engagement quality reviewer and firm. In Australia, these include the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the Accounting Professional & Ethical Standards Board Limited (APESB) (November 2018 incorporating all amendments to December 2022), the applicable provisions of the Corporations Act 2001 and other applicable law or regulation.
Requirements
Compliance with Relevant Ethical Requirements (Ref: Para. A1-A6)
The auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements.
* * *
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements (Ref: Para. 6)
The auditor, assurance practitioner, engagement quality reviewer and firm are to have regard to the applicable requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards), issued by the APESB, which are to be taken into account in determining whether relevant ethical requirements referred to in paragraph 6 of this Auditing Standard have been met. In relation to audits and reviews undertaken in accordance with the Corporations Act 2001, the provisions of Division 3 Part 2M.4 of the Act may also apply.
APES 110 establishes the fundamental principles of ethics which are:
Integrity;
Objectivity;
Professional competence and due care;
Confidentiality; and
Professional behaviour.
The fundamental principles of ethics establish the standard of behaviour expected of the auditor, assurance practitioner, engagement quality reviewer, and firm, when performing audits, reviews and other assurance engagements.
APES 110 provides a conceptual framework that establishes the approach which the auditor, assurance practitioner, engagement quality reviewer and firm are required to apply when identifying, evaluating and addressing threats to compliance with the fundamental principles.
In the case of audits, reviews and other assurance engagements, APES 110 sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to those engagements.
APES 110 describes independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism.
The definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards. In complying with the requirements of this Auditing Standard, the definitions used in APES 110 apply in so far as is necessary to interpret the ethical requirements of AUASB Standards.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Obtaining a Copy of this Auditing Standa Obtaining a Copy of this Auditing Standard
Obtaining a Copy of this Auditing Standard
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
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Contact Details
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ISSN 1833-4393
CONTENTS CONTENTS
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Compliance with Relevant Ethical Requirements......................................6
ASA 102 therefore functions as a binding AUASB standard that requires specified audit and assurance personnel and firms to comply with the applicable ethical requirements (including independence), and to take APES 110 into account in assessing whether those ethical requirements have been met (Application and Other Explanatory Material, paras A1-A6). It does not itself set the detail of independence rules; it directs practitioners to APES 110 and to relevant statutory provisions (for audits and reviews under the Corporations Act, Division 3 Part 2M.4 may apply) (Application and Other Explanatory Material, para. A1).
Main concepts
ASA 102 operationalises a small set of interlocking concepts. The foundational legal concept is a firm-level and engagement-level duty to comply with “relevant ethical requirements” (para. 6). Relevant ethical requirements are defined in the Standard to include: (i) the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) as issued by the APESB (November 2018 incorporating amendments to December 2022), (ii) applicable provisions of the Corporations Act 2001, and (iii) other applicable law or regulation (Definitions para. 1.4). The Standard therefore uses APES 110 as the primary substantive source of ethical rules while preserving statutory and other legal obligations.
APES 110’s conceptual framework is expressly incorporated into ASA 102’s application material. APES 110 establishes five fundamental principles , integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour , and provides a conceptual framework for identifying, evaluating and addressing threats to those principles (Application and Other Explanatory Material, paras A2-A3). For independence specifically, APES 110 sets out Independence Standards and describes independence as comprising both independence of mind and independence in appearance (Application and Other Explanatory Material, paras A2-A4). ASA 102 instructs auditors and firms to “have regard to” APES 110 in determining whether the relevant ethical requirements have been met (Application and Other Explanatory Material, para. A1).
Quality management is incorporated by reference. ASA 102 applies to firms required to comply with ASQM 1 (Quality Management for Firms) and to engagement quality reviewers as defined in ASQM 1 (Application paragraph 1(e); Definitions 1.1 and 1.3). The Standard also draws from ISQM 1 and ISQM 2 in its requirement mapping (Conformity table), signalling an expectation that firm-level quality management systems and engagement-level quality processes intersect with ethical compliance.
Inter-operability with AUASB standards is explicit: ASA 102 is to be read in conjunction with ASA 101 (Preamble) and ASA 200 (Overall Objectives) (Authority Statement). The Standard also claims that compliance with ASA 102, together with other Australian Auditing Standards, enables compliance with equivalent ISAs and ISQMs (Conformity with International Standards on Auditing).
A compilation/administrative concept appears repeatedly: this document is a compilation of ASA 102 (December 2019) and subsequent amending standards (ASA 2021‑1 and ASA 2023‑1). The Table of Amendments records which paragraphs were changed, added or deleted and by which amending standard. For example, paragraph 6 and its heading were amended by ASA 2023‑1, and application paragraph 5 was amended by ASA 2023‑1 and some application paragraphs were deleted (Table of Amendments).
In summary, the main operational concepts are: (1) a firm-and-engagement duty to comply with applicable ethical requirements (para. 6); (2) the primacy of APES 110 as the practical code to consult and apply (Application paras A1-A6); (3) linkage to ASQM 1 for firm quality management; and (4) legislative/standard-making provenance under ASIC Act s 227B and Corporations Act s 336. These constructs determine who must act, the normative source of obligations, and the institutional cross-references that practitioners must monitor.
Who it affects
ASA 102 names, and thereby targets, four categories of persons and entities: the auditor, the assurance practitioner, the engagement quality reviewer and the firm (Application para. 1; Requirement para. 6; Definitions para. 1.1-1.3). Each of these terms is cross-defined by reference to other AUASB standards: auditor is defined as in ASA 200; assurance practitioner and engagement quality reviewer are defined as in ASQM 1. By design, the Standard applies both to individuals (practitioners and reviewers) and to the firms that employ or engage them.
The Standard’s application paragraph explicitly lists the types of engagements covered: audits of financial reports for a financial year, audits or reviews of half‑year financial reports under the Corporations Act 2001, audits or reviews of financial reports or a complete set of financial statements for any other purpose, audits or reviews of other financial information, other assurance engagements, and firms required to comply with ASQM 1 (Application para. 1). That means the Standard reaches: statutory audits (Corporations Act), regulated reviews, non‑statutory assurance engagements, and other audit/review work for private purposes where auditors apply AUASB standards.
Firms required to comply with ASQM 1 are explicitly within scope (Application para. 1(e)). ASQM 1 applies to firms that perform audits or reviews of financial statements, or other assurance or related services engagements; inclusion of ASQM 1 therefore captures firms of varying size where that quality management standard applies.
APES 110 is identified as the primary ethical code to be applied. The Standard therefore affects all Australian professional accountants and audit practitioners who are subject to APES 110 (Definitions para. 1.4; Application and Other Explanatory Material para. A1). APES 110 itself is issued by the APESB; the Standard refers to APES 110 as at November 2018 incorporating amendments to December 2022. Practitioners who are not members of APESB-governed bodies will still be affected to the extent their engagements fall within AUASB standards’ remit or statutory obligations incorporated by reference (e.g., Corporations Act).
Regulatory cross‑reach is present: ASA 102 states that, in relation to audits and reviews undertaken in accordance with the Corporations Act 2001, Division 3 Part 2M.4 of the Act may also apply (Application and Other Explanatory Material para. A1). That division contains statutory independence and related obligations for auditors of corporations, so registered company auditors and firms auditing Corporations Act entities should treat ASA 102 as part of the rule‑set they must comply with.
Who decides compliance in practice? The AUASB issues the standard (made pursuant to s 227B ASIC Act and s 336 Corporations Act) and APESB issues APES 110. Enforcement and oversight bodies are not enumerated in ASA 102, but the Standard’s network of obligations makes compliance relevant to professional regulators, statutory regimes that refer to auditing standards, and firms’ own quality systems.
Finally, because ASA 102 is a compilation incorporating amendments and operative dates, those responsible for compliance need to monitor which versions and amending standards apply to a given engagement (Compilation Details; Table of Standards; Table of Amendments). Engagements with reporting periods ending on or after 31 December 2019 are covered by the base standard (Operative Date para. 1), and amending standards have varied operative dates listed in the Table of Standards.
Key duties and rights
ASA 102’s core duty is straightforward and singular in text: the auditor, assurance practitioner, engagement quality reviewer and firm shall comply with relevant ethical requirements, including those pertaining to independence, when performing audits, reviews and other assurance engagements (Requirement, para. 6). That duty is collective: it binds individual practitioners, engagement reviewers, and firms.
Duties flowing from that core requirement are primarily procedural and evaluative rather than prescriptive of specific do’s and don’ts within the Standard itself. The application and explanatory material directs practitioners to “have regard to” APES 110 when determining whether the relevant ethical requirements in para. 6 have been met (Application and Other Explanatory Material, para. A1). APES 110 establishes a conceptual framework practitioners must apply to identify, evaluate and address threats to the fundamental principles (Application para. A2). For independence, APES 110 contains Independence Standards produced by applying the conceptual framework to threats to independence (Application para. A3).
Operational duties that follow from ASA 102 include:
Identify the “relevant ethical requirements” that apply to the engagement, including APES 110 and any applicable provisions of the Corporations Act or other law (Definitions para. 1.4; Application para. A1).
Apply APES 110’s conceptual framework to identify, evaluate and address threats to integrity, objectivity, professional competence and due care, confidentiality and professional behaviour (Application paras A2-A3).
Treat independence as both a matter of independence of mind and independence in appearance, and apply Independence Standards as required (Application para. A4).
Ensure firm-level and engagement-level processes align with ASQM 1 where the firm is in scope (Application para. 1(e); Definitions paras 1.1-1.3).
Rights are not expressed as private entitlements in ASA 102. The Standard does not create exemptions or shield practitioners from other legal obligations. It does, however, give practitioners a compliance framework by pointing them to APES 110 and other legal sources. Practitioners can rely on the guidance in APES 110 to structure their decision-making on threats and safeguards; the Standard’s Application material expressly permits the definitions used in APES 110 to be applied insofar as necessary to interpret the ethical requirements of AUASB standards (Application para. A4).
The Standard also establishes an interpretive hierarchy: AUASB standards (ASA 102 read with ASA 101 and ASA 200) set the obligation to comply with ethical requirements; APES 110 is to be taken into account to determine whether compliance has been achieved (Application para. A1). This hierarchy allocates interpretative tasks rather than substantive rights.
Procedurally, firms must also track versions and amendments: ASA 102 is a compiled instrument and the Table of Amendments records paragraph-level changes by amending standards (Compilation Details). This creates a duty for firms to apply the correct operative text for the engagement period (Operative Date para. 1; Table of Standards).
In sum, the principal duties are compliance with relevant ethical requirements and application of APES 110’s conceptual framework, while practical rights are limited to relying on APES 110 for guidance and on the AUASB’s compilation/operative dates to determine applicable obligations.
Penalties and enforcement
ASA 102 itself does not specify civil, administrative or criminal penalties within its text. The Standard is an AUASB instrument made under statutory powers (made pursuant to s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001), but it does not set sanctioning mechanisms; rather it requires compliance with external ethical requirements (APES 110) and, where applicable, statutory provisions such as Division 3 Part 2M.4 of the Corporations Act (Application and Other Explanatory Material, para. A1). Therefore the Standard creates or clarifies obligations that may intersect with external enforcement regimes rather than establishing its own penalty regime.
Mechanisms by which non‑compliance may attract consequences are implied through the network of referenced instruments:
Professional discipline under APES 110. APES 110 is issued by the Accounting Professional & Ethical Standards Board Limited (APESB). While ASA 102 directs practitioners to APES 110, the Standard does not set APESB enforcement procedures; professional bodies and membership rules typically govern discipline for breaches of APES 110. ASA 102’s reliance on APES 110 therefore means non-compliance could result in professional regulatory consequences administered via bodies whose rules incorporate APES 110, but ASA 102 does not itself invoke those processes.
Statutory consequences under the Corporations Act. ASA 102 warns that for audits and reviews under the Corporations Act, Division 3 Part 2M.4 may apply (Application para. A1). That statutory division contains obligations regarding auditor independence and related matters. Where an auditor’s conduct also breaches statutory duties under the Corporations Act, enforcement powers vested in ASIC or statutory sanctions under the Act could be engaged. ASA 102 itself does not restate those penalties.
Quality-management and standard compliance enforcement. Firms required to comply with ASQM 1 will need to embed processes that demonstrate compliance with ethical requirements. Failure to implement appropriate quality management systems may lead to adverse findings in regulatory inspections or quality reviews conducted by professional oversight bodies or regulators; ASA 102 is one of the AUASB standards inspectors will assess.
Contractual and market consequences. Non-compliance with ASA 102 and its referenced ethical requirements can expose practitioners and firms to contractual disputes, reputational loss, and potential civil claims arising from negligent performance of assurance engagements. The Standard does not create a cause of action, but it forms part of the set of professional standards that courts and regulators may consider relevant to professional conduct.
Given the Standard’s reliance on other instruments for detail and sanctions, enforcement hinges on the institutions that govern those instruments (APESB, ASIC, professional accounting bodies, and courts). ASA 102’s role is to require compliance and to set the expectation that practitioners must refer to APES 110 and relevant statutory provisions; it does not itself lay out penalties or enforcement procedures.
How it interacts with other laws
ASA 102 is expressly designed to operate within a framework of other AUASB and professional standards and within statutory law. The Authority Statement requires the Standard to be read in conjunction with ASA 101 (Preamble) and ASA 200 (Overall Objectives of the Independent Auditor) (Authority Statement). That linkage means ASA 102’s ethical compliance requirement interacts with the broader duties and objectives set out in those AUASB instruments.
APES 110 is the primary external instrument for ethical rules. ASA 102 instructs practitioners to have regard to APES 110 when determining whether the relevant ethical requirements have been met (Application para. A1). APES 110 provides the fundamental principles and the conceptual framework, and contains Independence Standards relevant to assurance engagements (Application paras A2-A5). The Standard therefore delegates substantive ethical prescriptions to APES 110 and treats differences in terminology as resolvable by applying APES 110 definitions “in so far as is necessary” to interpret AUASB Standards (Application para. A4).
Statutory interaction is twofold. First, ASA 102 notes it is made pursuant to s 227B of the Australian Securities and Investments Commission Act 2001 and s 336 of the Corporations Act 2001 (Auditing Standard ASA 102 paragraph). Second, the Application material clarifies that for audits and reviews under the Corporations Act, Division 3 Part 2M.4 of the Act “may also apply” (Application para. A1). That means practitioners must reconcile AUASB ethical requirements and APES 110 with statutory auditor independence rules in the Corporations Act. Where statutory obligations and APES 110 diverge, statutory law would typically prevail; ASA 102 does not resolve conflicts but warns that multiple instruments may be applicable.
ASA 102 also maps to international standards. The Conformity with International Standards on Auditing table links paragraph 6 and various application paragraphs to ISA 200, ISQM 1, ISQM 2 and ISA 220. The Standard claims that compliance with ASA 102 together with other AUASB Standards enables compliance with ISAs and ISQMs. Practically, this cross‑referencing means firms that align with international quality management and independence expectations under ISAs/ISQMs will likely meet the AUASB requirement.
Definitions overlap and may create interpretive issues. ASA 102 explicitly acknowledges that APES 110 definitions “may differ from the definitions of those terms in AUASB Standards” and provides that, in complying with the requirements of ASA 102, the definitions used in APES 110 apply to the extent necessary to interpret ethical requirements in AUASB Standards (Application para. A4). That instruction creates a rule-of-thumb for resolving definitional clashes but requires practitioners to be attentive to which definition governs a specific point.
Finally, ASA 102’s compilation status and record of amendments means that interaction with other standards depends on operative dates and amendment timing. The Table of Standards and Table of Amendments list when various paragraphs were changed by amending standards ASA 2021‑1 and ASA 2023‑1; practitioners must therefore ensure they apply the text that was operative for the engagement’s reporting period (Compilation Details; Table of Standards; Operative Date para. 1).
Amendment history
The compilation provides a detailed administrative record of ASA 102’s amendment history. The core ASA 102 was made on 4 December 2019 and registered (F2019L01673) on 19 December 2019, commencing on 20 December 2019 (Legislation History). Two amending standards are recorded in the compilation:
ASA 2021‑1, made 10 March 2021, operative for financial reporting periods commencing on or after 15 December 2022, registered as F2021L00403 on 1 April 2021 and commencing 2 April 2021 (Table of Standards; Legislation History).
ASA 2023‑1, made 15 March 2023, operative for financial reporting periods commencing on or after 1 January 2023, registered as F2023L00295 on 21 March 2023 and commencing on 22 March 2023 (Table of Standards; Legislation History).
The Table of Amendments lists the specific paragraphs affected and which amending standard effected the change. Notable entries include:
Multiple paragraphs including the Conformity with International Standards on Auditing heading, paragraphs 1, 3, 4, 5 and 6, and application paragraphs A1, A2, A3, A4, A5, A7, were amended by ASA 2021‑1 [Table of Amendments entries referring to ASA 2021‑1].
Subsequent changes by ASA 2023‑1 list that paragraph 5 was amended, paragraph 6 and its heading were amended, A1, A3, A4, A5 were amended, A6 was deleted, and A7 was amended (Table of Amendments).
The compilation notes the preparation date of the compilation (22 March 2023) and that it takes into account amendments made up to and including 15 March 2023 (Compilation Details). The compilation text expressly states it is not a separate Auditing Standard but a representation of ASA 102 as amended (Compilation Details).
Operationally, the effect of the amendment history is that different paragraphs of ASA 102 have been revised or removed in discrete amending standards. Practitioners must therefore consult the compilation and the operative dates to determine which text applied to a particular engagement. The Operative Date paragraph reiterates that the base ASA 102 is operative for engagements with financial reporting periods ending on or after 31 December 2019, but the Table of Standards shows amending standards have their own operative dates for changed paragraphs. The compilation’s Table of Amendments maps paragraph-level changes to the amending standard that caused them, which is necessary for determining which version applies.
Finally, the compilation records that paragraph A6 was deleted by ASA 2023‑1. That deletion is material for practitioners who previously relied on the explanatory material in A6. The compilation also shows that several application paragraphs were amended across the two amending standards, indicating iterative refinement of the explanatory material and the requirement heading (Table of Amendments).
Litigation history
The text of ASA 102 as compiled does not include or reference any judicial decisions, tribunal determinations or litigation outcomes. The Standard itself names no cases and contains no “litigation history” section. Under the developer instruction to name only cases the source names, there are none to report.
From the Standard’s content, it follows that any litigation touching ASA 102 would arise indirectly: for example, a court or regulator might, in a separate proceeding, consider whether a practitioner complied with AUASB standards or with APES 110. ASA 102, read with ASA 200 and APES 110, would constitute part of the professional standard environment against which conduct could be judged; however, ASA 102’s compilation does not catalogue case law or enforcement actions, nor does it assert that certain judicial interpretations exist.
Practitioners seeking precedent on how courts treat AUASB standards, APESB codes or Division 3 Part 2M.4 issues will need to consult case law databases and regulatory decisions external to this Standard because ASA 102 contains no litigation references and no summaries of judicial treatment.
Gotchas
The Standard’s concision and reliance on external instruments create several practical pitfalls to watch for:
Single-sentence requirement, wide delegated scope. Paragraph 6 contains a single, broad obligation to comply with “relevant ethical requirements, including those pertaining to independence”. The Standard delegates substantive content to APES 110, the Corporations Act and other law. The practical effect is that ASA 102 provides the obligation but little granular instruction; practitioners must consult APES 110 and statute for specifics (Requirement para. 6; Application para. A1).
Definitions may differ across instruments. ASA 102 acknowledges that “the definition of terms in APES 110 may differ from the definitions of those terms in AUASB Standards” and instructs that APES 110 definitions apply “in so far as is necessary to interpret the ethical requirements of AUASB Standards” (Application para. A4). That can create ambiguity where AUASB standards and APES 110 use the same term with different technical meanings; practitioners need to determine which definition controls in the specific interpretive context.
Compiled instrument versus separate made standard. The compilation repeatedly notes it is a representation of ASA 102 as amended, not a separate Auditing Standard in itself (Compilation Details). Users must therefore be alert to the original standard and the amending standards, and to operative dates for amending provisions (Table of Standards; Table of Amendments).
Operative-date complexity. The base standard is operative for reporting periods ending on or after 31 December 2019, but amending standards have different operative dates (Table of Standards). This may complicate determining which paragraph version applies to a particular engagement period.
Deleted explanatory material. Paragraph A6 in the application material has been deleted by ASA 2023‑1 (Table of Amendments). If practitioners previously relied on A6 for interpretation or guidance, its deletion may require alternative interpretive routes.
Cross‑regime obligations for Corporations Act audits. ASA 102 instructs that Division 3 Part 2M.4 of the Corporations Act “may also apply” to audits and reviews under the Act (Application para. A1). Practitioners must therefore reconcile AUASB/APESB obligations with any statutory provisions; failure to do so may lead to enforcement under statutory rather than professional regimes.
Reliance on APES 110 version. ASA 102 refers to APES 110 as at November 2018 incorporating amendments to December 2022 (Definitions para. 1.4; Application para. A1). If APESB subsequently issues further amendments, practitioners need to confirm which version is applicable to the reporting period and engagement, as ASA 102’s cross-reference is to a specific revisional snapshot.
No penalty language in the Standard itself. ASA 102 does not state sanctions or enforcement mechanisms. That can mislead users who expect self-contained enforcement detail; instead, they must map ASA 102 obligations to professional disciplinary regimes and statutory sanctioning mechanisms outside the Standard (Penalties and enforcement section).
Expectation vs prescription. The Application material frequently uses directions like “have regard to” APES 110 and “are to be taken into account”, which require judgement. Practitioners must document their judgments under APES 110’s conceptual framework to show they have followed the Standard’s process-based expectations (Application paras A1-A3).
Quality management interface. Firms required to comply with ASQM 1 must integrate ASA 102 into their quality management systems. Where firms have not fully implemented ASQM 1, compliance with ASA 102 may be harder to evidence (Application para. 1(e)).
These are practical friction points generated by the Standard’s architecture: a compact AUASB requirement that relies on external substantive instruments, operative-date complexity, and interpretive interactions across APESB, AUASB and statute.
How to comply
Complying with ASA 102 requires a layered approach that maps the Standard’s single duty onto actionable processes. Below is a practical compliance checklist derived from the Standard and its application material; each step references the relevant paragraph in the compilation.
Identify applicable engagements and persons in scope (Application para. 1; Definitions). Confirm that the engagement is an audit, review, other assurance engagement, or that the firm is required to comply with ASQM 1. Record the engagement type and operative reporting period.
Determine which version of ASA 102 and its amending standards apply (Operative Date para. 1; Compilation Details; Table of Standards; Table of Amendments). For the engagement’s reporting period, confirm whether changes introduced by ASA 2021‑1 or ASA 2023‑1 (and their operative dates) apply to any paragraphs material to your practice.
Identify the “relevant ethical requirements” that apply (Definitions para. 1.4). At a minimum, in Australia this includes APES 110 (including Independence Standards) and applicable provisions of the Corporations Act 2001; in some cases other law or regulation will also apply. Document the list of applicable ethical instruments and their versions.
Apply APES 110’s conceptual framework concretely (Application paras A2-A3). For each engagement, perform and document threat identification (familiarity, self-interest, self-review, advocacy, intimidation), evaluate the significance of each threat, and determine appropriate safeguards or remedial actions. Ensure documentation records the nature of threats, the analysis under the conceptual framework, and the safeguards applied.
Treat independence as both independence of mind and independence in appearance (Application para. A4). For engagements under the Corporations Act, check Division 3 Part 2M.4 for any additional statutory independence rules that must be addressed alongside APES 110.
Integrate ethical compliance into firm-level quality management (ASQM 1) (Application para. 1(e); Definitions paras 1.1-1.3). Where the firm is subject to ASQM 1, ensure policies, procedures and monitoring for ethical compliance are embedded in the firm’s quality management system. This should include acceptance and continuance procedures, rotation and independence monitoring, and escalation procedures for unresolved threats.
Engagement-level controls and engagement quality review. Ensure engagement teams and engagement quality reviewers perform ethical risk assessments as part of engagement planning and that reviewers confirm adherence to APES 110 and ASA 102. Record the reviewer’s assessment and any corrective actions.
Maintain versioned documentation. Keep a contemporaneous record showing which version of APES 110 and which AUASB/ASQM standards were applied, with dates. Because ASA 102 cross-references a specific APES 110 edition, note whether a more recent APES 110 amendment is in force and whether it affects the engagement.
Reconcile terminology where definitions differ (Application para. A4). Where the AUASB standard and APES 110 use the same terms differently, document the interpretive choice and why the APES 110 definition was applied for the purposes of ethical requirements (as ASA 102 permits).
Training and monitoring. Provide targeted training to engagement teams and reviewers on APES 110 fundamentals, the conceptual framework, and the interaction with Corporation Act requirements for auditors. Establish monitoring and remediation cycles to detect compliance failures early.
Reporting and escalation. Create a clear escalation pathway for ethics issues that cannot be resolved at engagement level. Ensure the firm’s governance documents assign responsibility for final decisions and that this aligns with ASQM 1 responsibilities for firm leadership.
External considerations. For audits and reviews under the Corporations Act, confirm whether Division 3 Part 2M.4 imposes obligations beyond APES 110 for that engagement; seek legal advice where statutory obligations are unclear or appear to diverge from APES 110.
Evidence for inspection. Prepare a compliance pack for each engagement that includes: identification of applicable ethical instruments; the APES 110 threat evaluation and safeguards; independence confirmations; engagement quality reviewer notes; and evidence of firm-level quality management linkage (ASQM 1). This will be useful in regulatory inspections or professional oversight reviews.
Keep abreast of amending standards. Because ASA 102 has been amended, subscribe to AUASB and APESB updates and ensure the firm’s standard‑setting library and compliance registers are updated promptly when new amending standards or APES 110 revisions take effect (Compilation Details; Table of Amendments).
By following these steps and documenting decisions against APES 110’s conceptual framework and AUASB operative texts, firms and practitioners will create the evidentiary basis to show they have complied with ASA 102’s principal obligation to comply with relevant ethical requirements (Requirement para. 6; Application paras A1-A4).
Compliance with Relevant Ethical Requirements..................................A1-A6
COMPILATION DETAILS COMPILATION DETAILS
Obtaining a Copy of this Auditing Standard
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 BoardPodium Level 20, 500 Collins StreetMelbourne Victoria 3000AUSTRALIA
Phone: (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 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.
ISSN 1833-4393
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Compliance with Relevant Ethical Requirements......................................6
Application and Other Explanatory Material
Compliance with Relevant Ethical Requirements..................................A1-A6
COMPILATION DETAILS
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
This compilation takes into account amendments made up to and including 15 March 2023 and was prepared on 22 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 102 (December 2019) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASA 102
4 December 2019
Financial reporting periods ending on or after 31 December 2019[*]
ASA 2021-1
10 March 2021
Financial reporting periods commencing on or after 15 December 2022
ASA 2023-1
15 March 2023
Financial reporting periods commencing on or after 1 January 2023
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 102
F2019L01673
19 December 2019
20 December 2019
ASA 2021‑1
F2021L00403
1 April 2021
2 April 2021
ASA 2023-1
F2023L00295
21 March 2023
22 March 2023
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Conformity with International Standards on Auditing
Amended
ASA 2021-1 [11]
1
Amended
ASA 2021-1 [12]
3
Amended
ASA 2021-1 [13]
4
Amended
ASA 2021-1 [14]
5
Amended
ASA 2021-1 [15]
6
Amended
ASA 2021-1 [16]
A1
Amended
ASA 2021-1 [17]
A2
Amended
ASA 2021-1 [18]
A4
Amended
ASA 2021-1 [19]
A7
Amended
ASA 2021-1 [20]
5
Amended
ASA 2023-1 [9]
6 and its heading
Amended
ASA 2023-1 [10]
A1
Amended
ASA 2023-1 [11]
A3
Amended
ASA 2023-1 [12]
A4
Amended
ASA 2023-1 [13]
A5
Amended
ASA 2023-1 [14]
A6
Deleted
ASA 2023-1 [15]
A7
Amended
ASA 2023-1 [16]
AUTHORITY STATEMENT
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as amended to 15 March 2023) is set out in paragraphs 1 to A6.
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 has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
However, the requirement and application and other explanatory material in this Auditing Standard have been drawn from ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, ISQM 2 Engagement Quality Reviews, ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing and ISA 220 Quality Management for an Audit of Financial Statements, issued by the IAASB, as listed in the following table:
Compliance with this Auditing Standard, together with other Australian Auditing Standards, enables compliance with the ISAs and ISQMs.
Auditing Standard ASA 102 Compliance wit Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as Amended)
This compilation takes into account amendments made up to and including 15 March 2023 and was prepared on 22 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 102 (December 2019) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards Table of Standards
Table of Standards
Standard
Date made
Operative Date
ASA 102
4 December 2019
Financial reporting periods ending on or after 31 December 2019[*]
ASA 2021-1
10 March 2021
Financial reporting periods commencing on or after 15 December 2022
ASA 2023-1
15 March 2023
Financial reporting periods commencing on or after 1 January 2023
Legislation History Legislation History
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 102
F2019L01673
19 December 2019
20 December 2019
ASA 2021‑1
F2021L00403
1 April 2021
2 April 2021
ASA 2023-1
F2023L00295
21 March 2023
22 March 2023
Table of Amendments Table of Amendments
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
Conformity with International Standards on Auditing
Amended
ASA 2021-1 [11]
1
Amended
ASA 2021-1 [12]
3
Amended
ASA 2021-1 [13]
4
Amended
ASA 2021-1 [14]
5
Amended
ASA 2021-1 [15]
6
Amended
ASA 2021-1 [16]
A1
Amended
ASA 2021-1 [17]
A2
Amended
ASA 2021-1 [18]
A4
Amended
ASA 2021-1 [19]
A7
Amended
ASA 2021-1 [20]
5
Amended
ASA 2023-1 [9]
6 and its heading
Amended
ASA 2023-1 [10]
A1
Amended
ASA 2023-1 [11]
A3
Amended
ASA 2023-1 [12]
A4
Amended
ASA 2023-1 [13]
A5
Amended
ASA 2023-1 [14]
A6
Deleted
ASA 2023-1 [15]
A7
Amended
ASA 2023-1 [16]
AUTHORITY STATEMENT
Auditing Standard ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements (as amended to 15 March 2023) is set out in paragraphs 1 to A6.
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 has been made for Australian legislative purposes and accordingly there is no equivalent International Standard on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
However, the requirement and application and other explanatory material in this Auditing Standard have been drawn from ISQM 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, ISQM 2 Engagement Quality Reviews, ISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance wit
This is an opening excerpt, not the complete document.